MODERN EVALUATION TECHNIQUES IN CREDIT RISK MANAGEMENT

Within commercial banks, the credit activity represents the engine that sustains and allows development and the credit risk management is an essential activity that the credit company has to adopt for not endangering its existence. The credit risk management's purpose is to adjust the risk, by maintaining its exposure within acceptable parameters. The banks must manage the credit risk of the entire portfolio and to take into consideration the interdependencies between the credit risk and other risks (the operational risk, the reputation risk, the market risk, the liquidity risk etc.). Credit risk evaluation is essential for any bank's long-term success.