Role of covenants in an assessment of credit assets of commercial bank according to International Financial Reporting Standards

Zubkova Svetlana Valeryevna, Rakhmanova Marina Andreevna

In the conditions of transition to IFRS 9 commercial banks face need of improvement of credit process and search of the new tools allowing to minimize credit risks. The analysis of theoretical researches and consideration of practical examples show a role of credit covenants in decrease in credit risk from what need for each bank of development or improving covenant monitoring systems, and also development of a technique of drawing up the list of covenants for the credit agreement follows in this article. The modern theory of strategic management defines need for quality of covenants to consider and a condition of intangible assets of the borrower that also demands from bank of development of the system of their control.

Keywords:commercial bank, International Financial Reporting Standards, covenant, depreciation of a credit asset, monitoring of covenants.