Classification of retail banking lending
DOI:
https://doi.org/10.21847/1728-9343.2014.6(132).29528Keywords:
retail lending, retail credit, consumer credit, retail credit product, classificationAbstract
Competition in retail banking lending forces banks to constantly analyze the proposed loan products and loan products to competitors, to develop and introduce new versions of products, improve existing conditions, taking into account the changing needs of the population, the provision of new social groups of potential borrowers, uses of credit and other factors. In the process, the banks are increasingly collaborating with sales, service, insurance and other organizations providing credit in conjunction with other services. The specificity of the emergence of different types of retail lending, their interrelation and interpenetration leads to the necessity of ordering and classification of retail banking loans, as well as its continuous improvement and additions.
The choice of reasonable criteria differentiation of types of retail loans based on certain classifications is rather difficult, but important problem. Scientific approaches to the classification of bank loans illuminated by representatives of such scholars H. Babin, U. Dremova, A. Lavrushin, W. Lexis, E. Litvinov, M. Petukhov, A. Plyetinska, N. Syekirina, M. Chirkova, N. Shabanova and others. The article aims to systematize criteria for the classification of retail banking loans, which will increase the efficiency of banks through differentiated product range of loans to meet the needs of customers.
After systematization and critical analysis of scientific approaches to the classification of retail banking loans formed a plurality of types of loans and are presented in the form of classification of retail loans, depending on the following conditions: bank control over how the borrower spends money; speed of the Credit application; credit facility; credit terms; support; method of payment; Terms of; method of charging interest; giving way; category of the borrower; the amount of the loan; currency loan; type of interest rate; method of evaluating creditworthiness; segment of the retail market; sales channel.
The classification best reflects the diversity of the types of retail banking loans and can be used to diversify the credit risk of investments, development of various loan products for the effective organization of retail lending, as well as to develop a differentiated system of assessing the creditworthiness of private borrowers.References
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