Management of Credit Trades and Risk Management in Banks of Slovakia: How to Measure the Real Credit Risk?
Dana Kiseláková

Abstract
The aim of this study is to analyze the credit risk, assess the real risk level of credit trades and the creditworthiness of the client using the internal ratings approach. This involves the practical application of financial theories, credit-, rating analyses and creating a rating model, in order to evaluate the acceptable primary recoverability on credit trades, focusing on commercial banks in Slovakia in euro area. The purpose is to execute an investment credit proposal for a fictional business entity in order to assess its ability to repay the bank loan from primary business sources. This paper refers to the analyses and rating models, which are progressive managerial tools for credit risk management in banks and the support of decision-making in a global environment. The credit trade proposal presents the applicable general methodology and creative solutions for effective credit management in practice in order to decrease potential financial risks and losses.

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