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  1. Management of the credit risk and the control of its impact on the profitability of the financial institutions
    1. The credit risk, a major risk of exploitation in the financial institutions
    2. The credit risk, and its impact on banking profitability
  2. Risk management within the group
    1. Presentation of the Banque Populaire
    2. The Balle II stakes for the Moroccan banks
  3. Risk management, how has the popular bank got with it?

The risk of diversification is a basic precept of the banking activity. A big part of the large banking failures was due, in a way or another, to a concentration of the credit risk. The banking controlling authorities have, at all times, strongly encouraged the banks placed under their jurisdiction to avoid the concentration of risks. This concentration can take several forms. Apart from the credit risk, it can comprise an over-exposure to the market risks or an excessive financing risk when a bank calls too exclusively upon a given compartment of the market to get resources. Certain forms of risk concentration do not lend themselves easily to an objective measurement, in spite of their considerable importance for the monitoring of such or such bank. Moreover, the fact that the banks are often specialized in a particular field can mean that the profitability of this type of activity is above the average, although the risk which they incur is also higher than the average if the external factors seem less favorable.

[...] FIRST PART: Management of the credit risk and the control of its impact on the profitability of the financial institutions Introduction of the first part The challenges of the banking environment depend on the evolution of the risks and the need to adapt oneself so as to have a competitive positioning. To understand these various challenges, I concentrated initially on what the banking environment is today. The bank has become a changing reality, among which its limits and its large features are sometimes difficult to determine exactly. [...]

[...] Section Control of the credit risk in the bank Paragraph Management of a credit portfolio The credits portfolio and the provisions for doubtful debts which are associated to it are the most important stations of the financial statements of a finance company. The credit portfolio generally constitutes the essential asset of the establishment. The portfolio and the provisions are the stations most likely to comprise significant anomalies. The portfolio is the independent source of risks exploitation for a finance company. [...]

[...] Thus, the control of the credit risk has become one of the major strategic axes of the banking business management If, obviously, the development of a satisfactory system of measurement and control of the great risks raises important questions of definition, useful lessons can be drawn from the experience of other controlling authorities. This study has enabled us to draw the following report: If the reality of the banking trade does not change, on the other hand indicating which will be given by it, in particular in terms of capital consumption and profitability, certain cases could be appreciably modified by this evolution of the risk measurement. [...]

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