At Banrisul, credit risk analysis is based on statistical models for individuals and for corporate customers in the retail segment. Corporate customers in the retail segment include companies with average monthly revenue of up to R$ 1 million, which do not belong to economic groups and\/or exception segments.<\/p>\n\n\n\n
The exception segment is identified based on the company’s main National Registry of Economic Activity (CNAE – Cadastro Nacional de Atividade Econ\u00f4mica). This group includes companies that have atypical cash flows with seasonal periods, as well as those that are not targets of Banrisul’s market of interest. In the segments with low commercial interest, the Bank has listed those with high environmental and social risk.<\/p>\n\n\n\n
Legal entities that are not subject to the retail analysis are also analyzed on an individual basis, in which quantitative and qualitative aspects are observed. In the qualitative analysis, besides the governance and management aspects, which are essential for credit risk analysis, environmental and social matters related to the company and its production chain are evaluated. These analyses are performed by risk analysts, who are arranged in specialized groups per sector in which the companies operate, who interact with each other and have an in-depth knowledge of the companies, their role and impact on the local economy \u2013 a situation that provides an opportunity for a better identification of possible risk factors and atypical behavior by some companies. Also, for large corporations, risk assessment is carried out based on specific qualitative aspects for approaching ESG topics, which result in a classification that takes into account these aspects without being limited to them.<\/p>\n\n\n\n
The retail risk analyses are carried out based on the information recorded in our registration, billing, and incident reporting (BLT in Portuguese) systems. The BLT system gathers have internal and external incidents received from credit bureaus and other official bodies, registering managerial and restrictive incidents that may indicate the worsening of risk from the ESG perspective, among them is forced labor and environmental damage, both considered as impediments to credit assignment. As for individual analyses, in addition to these same controls, data extracted from the financial statements and notes thereto, as well as other information made available by customers are used. They must also fill out a specific checklist, which helps analyst to gather qualitative information that will be used in their opinion, including risk analysis and exposure limits.<\/p>\n\n\n\n
Risk analysis for the formation of exposure limit is generalist, that is, it addresses the most relevant information and considerations for credit risk without yet considering the specific characteristics of the credit that will be contracted. Within this context, additional information and analyses may be requested during the analysis and operations are approved observing ESG aspects, with special relevance for investment lines, agribusiness and real estate ventures.<\/p>\n\n\n\n
Given the relevance of credit exposures, all operations above R$10 million in which the use of funds or directed credits is known must fill out a questionnaire (Formul\u00e1rio Normatizado Modelo 1.31000.01). The questionnaire may also be applied to other operations or amounts lower than this threshold.<\/p>\n\n\n\n
Allowance for loan losses (PCLD in Portuguese) is calculated monthly for all active contracts based on the rating calculation. Currently, the customer not having an approved credit exposure limit is one of the factors that can worsen the rating classification of Banrisul’s credit operations. For some industries, this individual analysis to determine exposure limit is forbidden, for example sectors\/CNAE of gambling and betting, several agricultural crops (such as tobacco and sugar cane).<\/p>\n\n\n\n
Moreover, the analysis of denials of exposure limits may occur due to the lack of environmental licenses, debts with the union, and one of the consequences is the possibility of worsening the rating classification, especially for customers who already have exposure with the Bank.<\/p>\n\n\n\n
Furthermore, regardless of the exposure limit in force and the size of the company or individual customer, in the monthly calculation of the Allowance for Loan Losses, incidents are verified that may worsen the customer’s risk in a timely manner, such as inclusion on the Forced Labor list, Court Restrictions, internal audit notes for fraud, fraud with the Bacen and irregularities with the Brazilian Securities and Exchange Commission.<\/p>\n\n\n\n
ESG aspects are assessed qualitatively by the credit risk analysts and the evaluation is in line with Banrisul\u2019s Institutional Manual\/ Social and Environmental Responsibility Policy.<\/p>\n\n\n\n
Considering that the individual analyses rely on relevant information from the ESG agenda, but are not limited to it, the experiences gathered in the course of these analyses, together with the ongoing monitoring of trends, are currently how the institution identifies opportunities for improvement in our processes.<\/p>\n\n\n\n
In monitoring the credit portfolio, Banrisul has viewed credit allocation according to the sector in which the customer operates, as well as the largest individual exposures and those of economic groups. These views are shared with various Banrisul units, contributing to timely initiatives that may lead to adjustments in the automated exposure limits – an action carried out with greater recurrence during the pandemic, in individual analysis of the exposure limits (LR), in adjustments to the parameters of Allowance for Loan Losses calculation or in the worsening of the company’s risk rating – via individual analysis (monitoring) .<\/p>\n\n\n\n
In the geographic context, the statistical models used in credit assignment have a variable that signals the main regions of the state where the information is gathered by the customer relationship branch, which, together with the CNAE (corporate customers) or CBO (individuals) information, add to and complement this sector and geographic evaluation.<\/p>\n\n\n\n
In addition to the statistical models used for credit risk assessment, which aim at mitigating the risk of default and supporting the credit assignment process, the customer’s exposure is controlled in order to avoid over-indebtedness, which, based on the customer\u2019s risk rating, size and profile, seeks to outline healthy levels of commitment, such as:<\/p>\n\n\n\n
– For individuals, Global Limits (LGs) are outlined that mark the level of monthly commitment of the customer’s income;<\/p>\n\n\n\n
– For corporate customers in the retail segment, there are the short-term monthly commitment (C), the Credit Limit (LC), and the Product Limits (LP – grouping of products according to homogeneous characteristics) – assessing the customer’s total exposure, including in the National Financial System;<\/p>\n\n\n\n
– For legal entities that have individual analysis: Risk Limit (LR) is defined divided between operations with personal guarantees and those with real guarantees.<\/p>\n\n\n\n
Also, statistical models are used for individual customers to classify the levels of vulnerability. Vulnerability is assessed in order to mitigate the risks related to the customer\u2019s understanding (or lack of understanding) regarding products and services, as well as the risk of over-indebtedness. In order to qualify the service to customers with higher risk arising from their vulnerabilities or classified at a high level of vulnerability, their credit operations are analyzed exclusively by a higher committee.<\/p>\n\n\n\n
In relation to customers who are circumstantially in financial vulnerability, the Bank has specific conditions and credit lines to readjust their financial flows, aiming to preserve Banrisul’s interests \u2013 both in receiving the credits granted and in satisfying the customer’s interest \u2013 to reorganize their flows and readjust their responsibilities to the Bank.In addition to these customer-focused aspects, the business areas make products focused on sustainability available. There is also a specific policy that establishes criteria for the acceptance of guarantees, which are aligned with the best market practices.<\/p>\n","protected":false},"featured_media":0,"template":"","categoria_indicadores":[1342],"codigo":[1348],"empresas":[],"ano_indicador":[1520],"class_list":["post-5037","indicador","type-indicador","status-publish","hentry","categoria_indicadores-additional-indicators","codigo-sasb-fn-cb-410a-2-en","ano_indicador-2022-en"],"acf":[],"yoast_head":"\n