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Рlace of off-balance sheet risks among banking risks

By N.G. Vygovska and V.G. Vygovskyy

Abstract

The article is devoted to the assessment of scientific approaches to the classification of banking risks, clarifying their classifications and types, the place of off-balance sheet risks in the proposed classification. It was determined that the complexity of identifying the risks is associated with fuzzy and multi-directional positions on the allocation of its classification. The article specifies the signs of risk classification and singles out the banking risks which contributes to the improvement of the theoretical foundations of risk management in the context of improving the identification and assessment of risks and the development of effective anti-crisis measures. The author determines the place of off-balance sheet risks in the current classification system and refines their essence: the off-balance sheet risk should be understood the potential for increasing the credit risk of the institution as a result of insufficient information display of off-balance sheet operations (relative to the presence and movement of resources and their sources, not belonging to the enterprise, but only temporarily at its disposal) in financial statements of the borrower. It is noted that the nature of off-balance sheet risks are unpredictable, nonquantificational, internal (related to the lack of completeness of the company’s financial information)

Topics: off-balance sheet risk, bank risk, risk classification, Business, HF5001-6182
Publisher: Zhytomyr State Technological University
Year: 2016
OAI identifier: oai:doaj.org/article:e53e515cfd64458fb30771f2d19a8e55
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