금융산업
Credit Portfolio Management Policies of Foreign Advanced Banks
2009-10-07LEE,Sae-Lom
목차
요약
Credit Portfolio Management Policies of Foreign Advanced Banks
Concept and Purpose of CPM(Credit Portfolio Management)
Most of the major foreign advanced banks are using CPM methods with the purpose
of credit optimization.
Most of the major global banks implemented CPM with the purpose of overcoming the
disadvantages of traditional loan management methods since 1990s.
The role of the CPM department is to actively manage the portfolio and reduce concentration risk enhancing portfolio diversification and maximizing returns.
Also, it is in charge of actively hedging risk with credit derivative products and trading
strategies.
The 3 CPM models are credit treasury, active advisor, and reactive controller, credit treasury is the most active model which encompasses diverse and active risk-hedging strategies.
Active advisor model also uses active risk-hedging strategies, but the loan ownership is not transferred, and finally the reactive controller is the most conservative model which focuses only in risk management.
CPM of Foreign Advanced Banks
Most of the North American, European and Japanese banks use credit treasury and active advisor models.
According to a survey conducted by Mckinsey, more than 60% out of 22 major North
American and European banks use credit treasury and active advisor CPM models and CPM department is inside the corporate business unit.
Credit treasury model is more used in the banks with high investment banking and corporate portfolio.
In the case of the Japanese banks(including MUFG), they mainly use active advisor model, but the difference with North American and European banks is that there are some conflict related to the risk-hedging costs between the CPM and sales department.
Implications
Korean banks should focus on ’portfolio optimization’
The CPM of most of the Korean banks is still in the beginning level when most of the
foreign banks already are using sophisticated methods.
Concept and Purpose of CPM(Credit Portfolio Management)
Most of the major foreign advanced banks are using CPM methods with the purpose
of credit optimization.
Most of the major global banks implemented CPM with the purpose of overcoming the
disadvantages of traditional loan management methods since 1990s.
The role of the CPM department is to actively manage the portfolio and reduce concentration risk enhancing portfolio diversification and maximizing returns.
Also, it is in charge of actively hedging risk with credit derivative products and trading
strategies.
The 3 CPM models are credit treasury, active advisor, and reactive controller, credit treasury is the most active model which encompasses diverse and active risk-hedging strategies.
Active advisor model also uses active risk-hedging strategies, but the loan ownership is not transferred, and finally the reactive controller is the most conservative model which focuses only in risk management.
CPM of Foreign Advanced Banks
Most of the North American, European and Japanese banks use credit treasury and active advisor models.
According to a survey conducted by Mckinsey, more than 60% out of 22 major North
American and European banks use credit treasury and active advisor CPM models and CPM department is inside the corporate business unit.
Credit treasury model is more used in the banks with high investment banking and corporate portfolio.
In the case of the Japanese banks(including MUFG), they mainly use active advisor model, but the difference with North American and European banks is that there are some conflict related to the risk-hedging costs between the CPM and sales department.
Implications
Korean banks should focus on ’portfolio optimization’
The CPM of most of the Korean banks is still in the beginning level when most of the
foreign banks already are using sophisticated methods.