IMPORTANCE OF CREDIT PORTFOLIO AND CREDIT RISK MANAGEMENT IN BANKING SYSTEM

  Hakimjon Otamurodov (Tashkent, Uzbekistan) |    Завантажити статтю

Portfolio management is concerned with both investment and credit portfolios. The investment portfolio consists of a few subportfolios, such as the sovereign security portfolio, corporate bond portfolio, equity investment portfolio, mutual funds portfolio, and so on. Management of the investment portfolio is concerned with the protection of investment values against the volatility of market variables. Credit portfolio management deals with the evaluation of each portfolio at periodic intervals to judge the quality of assets held in the portfolio and protect them from losing values through appropriate corrective action in time. For managing the credit portfolio, banks may divide its total credit assets into different portfolios or subportfolios