Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
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28<br />
RISK MANAGEMENT – MANAGING RISK COST WITH FAST PROCESSES<br />
Micro risk management must be<br />
enhanced as both loan volumes and<br />
NPL ratios are higher <strong>in</strong> micros than<br />
<strong>in</strong> PI<br />
CHALLENGES OF MICRO RISK MANAGEMENT<br />
In case <strong>of</strong> micros, both median and maximum values <strong>of</strong> NPL ratios are significantly<br />
higher than PI NPL ratios (see fig. 23). The very low m<strong>in</strong>imum value is caused by<br />
those participat<strong>in</strong>g banks without micro segment focus because <strong>the</strong>ir lend<strong>in</strong>g activity<br />
was moderate and <strong>the</strong>ir NPL ratio extremely low.<br />
Moreover both m<strong>in</strong>imum and maximum <strong>of</strong> average bank<strong>in</strong>g loan volumes granted for<br />
micros approximately double <strong>the</strong> PI loan volumes (see fig. 24).