Conference paper

RESULTS OF APPLIED COLLECTION MANAGEMENT MODEL – SERBIAN CASE

Lidija Barjaktarović ; University Department Finance and Banking, Singidunum Belgrade, Serbia
Dragan Ilić ; Business Academy Novi Sad Faculty of Economics and Engineering Management Department Marketing, Serbia
Ana Vjetrov ; Department Finance and Banking, Faculty of Economics, Finance and Administration, University Singidunum Belgrade, Serbia

Abstract

The main aim of establishing collection management model (CMM) is to minimize non-performing loans (NPL) in credit portfolio. Furthermore, efficiently organized collection management has direct impact on profit of the bank, via the level of provisions. The subjects of the analysis are the results of applied CMM on corporate credit portfolio of Erste bank and Banca Intesa Serbia in the second quarter of 2010. Consequently, the focus of this paper will be the period within 2011 and 2013. Elements of implemented CMM in both banks are the same, i.e. Aim, Architecture and Instruments in both models are similar. However, Organization, Control and Monitoring within the model are different due to the different risk management policies and organization in accordance with business needs. The authors focus on the following indicators: NPL, CAR (Capital Adequacy Ratio), ROE (Return on Equity) and quality of corporate credit portfolio. Finally, these results will be compared with the performance of the whole group to which Serbian banks belong, i.e. Italy and Austria.

Keywords

NPL; collection management; credit risk

Hrčak ID:

161582

URI

https://hrcak.srce.hr/161582

Publication date:

1.10.2015.

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