Credit Portfolio Management AND Its Accounting Reflection in Banks

Abstract

This article explores the management of credit portfolios in banks and their representation in accounting records. It examines the processes of credit allocation, monitoring, and risk assessment, as well as the methods of recording loans, interest income, and provisions for potential losses in the financial statements. The study highlights the importance of accurate accounting for effective risk management, regulatory compliance, and financial performance evaluation. Additionally, the paper discusses the challenges faced by banks in maintaining reliable credit records and the role of modern accounting systems in enhancing transparency and efficiency.

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