The role of risk management in the reduction of non-performing loans(An applied study on the Syrian Real Estate Bank)

The quality of credit portfolio depends heavily on the integrity of the decision to grant credit, which is in turn linked to a set of policies, procedures and standards that will reduce the faltering customers.The focus in this study was on the risk department in the Syrian Real Estate Bank and the role that the department played to reduce the nonperforming loans through the policies and procedures that it carried out and the commitment to Monetary and Credit Council decisions related to non-performing loans. The results showed that the department has an effective role in reducing non-performing loans, and it currently faces set of difficulties inits work in.The most important recommendations that have been reached are the need to launch new products with special conditions adjusting with the current conditions, and focusing on the restructuring of the deposits and the importance of relying on the economic legal advisory team to reach more accurate credit decision.

دراسة تحليلية للقروض المتعثرة في المصرف الصناعي السوري

تهدف هذه الدراسة إلى تحليل الأهمية النسبية للقروض المتعثرة و تطورها في المصرف الصناعي السوري خلال الفترة من عام 1998 حتى عام 2005 ، اعتمادًا على البيانات المالية لتلك الفترة. و من خلال تقييم الإجراءات المتبعة من قبل المصرف الصناعي لمعالجة القروض المتعثرة . و قد توصلت الدراسة إلى مجموعة من النتائج تشير إلى وجود قصور واضح لدى المصرف في إعداد الدراسات الائتمانية وفقًا للمعايير و الأعراف الفنية المصرفية، و غياب المتابعة الميدانية و المستمرة لنشاط العميل و نتائج أعماله و تطورها بعد منح القرض، مما أدى إلى نشوء ائتمان مصرفي متعثر. و خلصت الدراسة إلى تقديم بعض التوصيات يمكن أن تسهم في تحسين الدراسات الائتمانية اللازمة و تطويرها و تفعيلها لاتخاذ قرار الإقراض المناسب .

Suitability of Z-score index to measure financial stability of Syrian Traditional Private Banks

This paper aimed to study The suitability of (Z-score) index to measure banking financial stability of Syrian Private Traditional Banks, To achieve this purpose, the researcher built a model during the period from Q1-2010 to Q4-2014,using Cross-Sectional series of Banking financial performance variables and analyzing it using Panel Data Analyze. The main results are:  The suitability of (Z-Score) index to measure financial stability of Syrian Traditional Private Banks.  The financial stability of all Syrian Traditional Private Banks.  The significant positive relation between Book to market value(BM), Capital Adequacy (Adec) and financial stability index (Z-Score).  The significant negative relation between Quality of loan portfolio (QUAL), Deposit employment (NET/DEP) and financial stability index (Z-Score).  The absence of significant relation between(Z-Score) and banking performance ratios: Cover ratio(COV), bank's Liquidity (LIQ), and profitability measured by the ratio of Adjusted Return on Equity (Roe$).