Accounting Analysis of the Loan Portfolio of Banks and Feasibility of the Model for Credit Losses

Abstract

The study presents research into credit as an economic category and as an object of accounting analysis in banks. Credit risk is perceived as part of the accounting policy of banks. А model for accounting analysis, credit risk assessment and determining the necessary provisions (impairments) on the loans granted by the bank has been developed and established. The interrelationship and interdependence between accounting information, accounting analysis and credit risk management in banks has been analyzed. The information sources for the implementation of accounting analysis of credit risk have been systematically structured. The models for assessing the quality of the bank loan portfolio have been systematized and scientifically grounded. A critical analysis of the currently applicable model of impairment of financial assets has been made. The expectations and the effects of the forthcoming introduction of a new model for the recognition of expected losses from commercial banks have been defined.