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 ris
k 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.
Despite the development of work environment at banks in the twenty-first century,
and with the expansion of activities and banking operations, these banks have increasing
risks (credit risk, market risk, operational risk, etc.) which in turn need t
o be managed
more accurately and comprehensively to ensure maintaining stability, safety, and durability
of the work of banks, and avoiding the risk of failure to the maximum extent possible. This
requires the need to adhere to the standards of banking supervision, which is the guarantee
for the safety of the banking business and using modern inputs (the internal rating input,
the standard input, the Advanced Measurement input). In addition, the provisions of the
requirements of quantity and quality contribute to improving the efficiency of Risk
Management. In this study, the focus is on the role that modern inputs play in improving
the efficiency of risk management in the Real Estate Bank of Syria, given that the
Directorate of Risk Management have been updated over the past few years, they need to
meet the restriction standards of banking supervision, which considers modern inputs one
of its tools. This will be reflected on the development of the risk management process and
achieve various fundamental changes in reducing the risks, because preventing them may
not be possible considering that one aspect of which is linked to external and economic
factors, and the environmental conditions surrounding the work of the bank. This study is
based on the descriptive analytical method, and conducts interviews with employees in the
Directorate of risks to identify the mechanism of action taken by the Directorate and what
can be achieved if it depends on the application of modern inputs. This research shows that
what the Directorate are doing falls within the framework of the application of the input to
the internal rating, and they need to adhere to the standards of banking supervision in order
to increase their efficiency in relation to various types of risks.
