Credit Risk

Credit risk is the result of loss that the borrower's failure to fulfill its obligations in a timely manner, in whole or in part.

The cause of the risk, the changes may adversely affect the borrower's financial condition, adverse changes may occur in the financial sector, the negative changes in the economy, mismanagement of funds, excessive borrowing, and other factors that may affect the borrower's ability to repay the financial liability.
The relevant departments of the bank doing analysis of loan portfolio, sectors, regions, the concentration of loans and etc. In this case, the loans granted by the Bank in exchange for the risk factors are taken into account such as the provision of adequate collateral.
“Ziraat Bank Azerbaijan” to properly manage the credit risk of the loan portfolio, and uses a variety of methods. These methods, investigate the financial condition of borrowers, monitoring of loans, according to the solvency of credit limits, giving the division of powers in the application of the persons concerned to comply with the applicable regulations, the revaluation of collateral received as collateral, loan diversification of sectors and industries, and other methods included.