UPRAVLJANJEM KAMATNIM RIZIKOM POSLOVNE BANKE
CREDIT RISK MANAGEMENT FOR BUSINESS BANKS

Summary/Abstract: One of the key aspects of managing assets and liabilities of a bank is credit risk management. In the situation where interest rates fluctuate on the market there occur constant changes in the banks’ profit and expenditures, which has its repercussions on the economic value of their assets, liabilities and off-balance sheet positions. Regardless of the kinds of interest rates that appear on the market, the principal task of bank management is to achieve all the greater net interest margin with an acceptable credit risk. Four main sources of interest rate risks for business banks have been determined in the modern practice: repricing risk, return risk, principal risk and option risk.

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