Mechanisms for stimulating corporate lending at the micro level

Ushanov Alexander E.

The stagnation in the dynamics of lending by Russian commercial banks to corporate borrowers in recent years determines the need to take measures at the macro and micro levels in order to reverse this trend. The main factors of stagnation are high rates, bureaucratization of the banking sector, mainly short-term nature of loans, a significant share of overdue debt in the portfolio. The recovery of the credit cycle is hardly possible without the modernization of management processes at the macro level, and the state is taking certain measures in this regard. No less important is the modernization of the credit process at the lender level. The article substantiates the role of such a microeconomic factor of the Bank's credit policy as optimization of internal procedures of the credit process and lending parameters in the course of financing corporate clients. The content and methods of transformation of these procedures in order to intensify lending and reduce credit risks are disclosed.

Keywords:corporate lending, internal procedures, credit process, risk-based approach, credit application, powers of lending units.