The above Questions inspired me to the following considerations:

What are the most important determinants of the commercial banks' lending policy in your country?

The most important issue is the credit risk management for loans granted to commercial banks and the adjustment of credit policy to the quality of the loan portfolio, the clients' economic and credit standing, borrowers, business climate, customer incomes and changing systemic risk, investment in the business sector and the changing average creditworthiness of borrowers and potential customers. I described these issues in my publications.In view of the above, I am asking you the following question: What are the most important determinants of the commercial banks' lending policy in your country?Please, answer, comments. I invite you to the discussion.

In addition, I note the interesting discussion inspired me to the following considerations:

Is there or previously existed high systemic credit risk in the banking system in your country?

The issue of the quality of the credit risk assessment process carried out in the bank is particularly important for the assessment of the functioning of a commercial bank. In my country, the risk management process was not always carried out reliably. As a result, in the mid-1990s, the risk of a possible financial crisis emerged in my country. We managed to avoid this crisis. Below are the key issues of this problem.

In my country, system prudential instruments work correctly. In commercial activities, commercial banks usually reliably carry out creditworthiness tests of potential borrowers. In addition, investment banking is underdeveloped to a small extent, so currently the sources of the domestic crisis are relatively small. However, this was not always the case. When the banking system was created in my country in the realities of the market economy in the early 1990s, the quality of the loan portfolio deteriorated significantly due to several important reasons. At that time, the banks lacked knowledge about the procedures for testing the creditworthiness of customers and estimating the bank's credit risk. There was no centralized database gathering information from all banks about how borrowers repay loans. This database is created only a few years after system and economic changes and the creation of commercial banks. This database is called Credit Information Bureau in my country. Currently, banks normally use this database when conducting a creditworthiness test of a potential borrower. In addition, at the beginning of the 1990s, many loans were granted without adequate collateral, because a significant portion of business loans was granted after acquiring knowledge without conducting a creditworthiness test and thus without assessing the level of risk that the bank accepts when granting loans. At that time, there was a high credit systemic risk. In many banks, there was a liquidity problem and a significant proportion of banks could lose their liquidity and collapse. However, the central bank managed to notice the problem in a timely manner and through the restructuring of the restructuring bonds addressed to commercial banks, numerous bank failures were avoided. These bonds were offered to commercial banks on preferential terms. Commercial banks the costs of this restructuring lasting the next few years have passed on to customers. Thanks to this, for many years, banking products in my country were much more expensive than in other developed countries. However, since the end of the 20th century, the banking system in my country already looks almost completely different. All prudential instruments, both at individual banks and at the level of the entire banking system, were recreated following the example of developed country standards in the model of the European financial system. There are very few cases of bankruptcy of commercial banks in my country. On the other hand, those that happened were, unfortunately, certain problems that were usually noticed late by banking supervision noticed by the bank supervision until the bank announced the loss of liquidity. This issue should be improved. I deal with the research of credit risk management processes in commercial banks. I invite you to read my publications on this topic.

Most of the banks that announced permanent loss of financial liquidity and collapsed were usually small private banks in my country. However, large commercial banks have a diverse shareholding structure. In some of these banks the majority shareholder is the State Treasury and it is these banks that usually consider themselves the safest. This is a popular opinion, however, not entirely justified because these banks use analogous procedures for assessing the creditworthiness of clients and credit portfolio risk management processes as those used by foreign banks, which in the 90's began to be favored in my country and commercial banks - historically national, in which the majority financial institution is a foreign financial institution, usually another bank with headquarters abroad or foreign and domestic investment funds.

I invite you to scientific cooperation

I also study scientifically the sources of the global financial crisis that emerged in autumn 2008 when bankruptcy was announced by the investment bank Lehman Brothers. I also analyze the applied instruments of interventionism as part of monetary policy and assistance packages granted to banks in order to answer the question about their validity and their effects. The applied instruments of intervention state aid for the banking system are considered justified. They were expensive for the entire economy but thanks to this the financial crisis was able to quickly master and limit the negative effects of the downturn in the national economies, liquidity in the commercial banking sector was quickly restored. Most aspects of this issue of the applied instruments of intervention assistance to commercial banks are assessed positively. However, there are many issues to improve to reduce the risk of a similar, next global financial crisis in the future.

In view of the above, I would like to ask you: Is there or previously existed high systemic credit risk in the banking system in your country?

Please, answer, comments. I invite you to the discussion.

Can current globalization processes increase the systemic risk of global economic and financial crises?

Yes. In my opinion, globalization is leading to the Integration of Business Cycles. In this way, globalization may deepen economic crises, including the global financial and debt crisis. An example was the global financial crisis, which appeared in mid-September 2008. At that time bankruptcy was announced by one of the largest investment banks in the world. As a result of unreliable credit risk management procedures, billions of USD of financial losses have been generated. It turned out that the unwritten rule no longer works, that "big can not fall". However, it is the emergence of ever larger international corporations and financial institutions that is one of the main determinants of the processes of economic globalization that have been progressing in recent years. these processes continue. Every few years, as a result of the merger of some of the largest financial institutions through mergers and acquisitions, more and more banks are formed. On the other hand, international operating industrial corporations move their factories from country to country, looking for cheaper workforce, and international trading and service corporations set up subsidiaries and sales outlets in other countries. Capital links grow transnational and thus systemic risk grows, whose sources can be related to the progressing economic globalization.

Please reply. I invite you to the discussion

Are you aware of specific risk management systems that use the processing of information collected in Big Data database systems?

The improvement of specific risk management systems is particularly important in many areas of functioning of commercial business entities, financial institutions, public institutions as well as conducting investment, research and other projects.

How important is this is, for example, the global financial crisis that appeared in mid-September 2008, when specific financial, investment and credit risk management systems were not properly improved and the procedures of investment activity, including credit, were not carried out reliably, as well as customer service, and violation of business ethics in investment banks operating at the time and many other types of financial institutions and business entities.

please reply

Global systemic credit risk

In developed countries, knowledge-based economies are characterized by the development of information services, and production processes are increasingly determined by the quality of such factors as information, technology, innovations, patents, etc. In addition, analogous standards of telecommunications, transaction, market, financial systems, etc. . operate in different countries. Globalization is therefore still progressing.

In connection with the above, the communication, transactional and information aspects of globalization are characterized by a positive meaning. It is referred to as "the Earth as a" global village. "Through more and more modern communication, the global circulation of information is carried out in real time via Internet teleinformation systems.

But not all aspects of globalization have positive aspects.

In my opinion, globalization processes strengthen long-term business cycles. In this way, globalization may deepen economic crises, including the global financial and debt crisis. An example was the global financial crisis, which appeared in mid-September 2008. At that time bankruptcy was announced by one of the largest investment banks in the world. As a result of unreliable credit risk management procedures, billions of USD of financial losses have been generated. It turned out that the unwritten rule no longer works, that "big can not fall". However, it is the emergence of ever larger international corporations and financial institutions that is one of the main determinants of the processes of economic globalization that have been progressing in recent years. these processes continue. Every few years, as a result of the merger of some of the largest financial institutions through mergers and acquisitions, more and more banks are formed. On the other hand, international operating industrial corporations move their factories from country to country, looking for cheaper workforce, and international trading and service corporations set up subsidiaries and sales outlets in other countries. Capital links grow transnational and thus systemic risk grows, whose sources can be related to the progressing economic globalization.

I invite you to the discussion

Can the genesis of global economic crises be combined with technological revolutions?

In addition to many economic and financial sources in the field of unreliable risk management procedures, re-evaluation of assets on capital markets, long-term too low interest rates by central banks, granting loans to entities without creditworthiness, etc., according to non-classical theories, other sources of crises economic.

One of these non-classical theories is combining deep economic crises with technological revolutions, the secondary effect of which is over-investing in technological projects and re-evaluating the assets that these projects relate to.

In view of the above, I am asking you: Can the genesis of global economic crises be combined with technological revolutions?

Please, answer, comments. I invite you to the discussion.

Is banking lobbying in rating agencies, moral hazard in investment banking and ... can be the main factor in the next global financial crisis?

Does deepening the liberalization of the rules of conducting transactions in financial markets, banking lobbying in rating agencies, moral hazard in investment banking, failure to observe prudential procedures, neglecting the methodology of creditworthiness analysis in the process of verification of potential borrowers and violation of ethics in business can be the main factor in the next global financial crisis ?

And these types of factors at the transactional and procedural level were, in addition to the mild monetary policy of central banking, indicated by economists as the key determinants of generating the global financial crisis in 2008.

Please, answer, comments. I invite you to the discussion.

Do credit risk quantification models, eg credit scoring, credit metrics, value at risk, apply outside of finance and banking?

In finance and banking, the precise measurement of credit risk and other financial risk categories is particularly important because the specific value of the required financial reserves depends on it.

The global financial crisis of 2008 was proof that having certain security procedures and improving risk quantification models may not be sufficient to maintain the security of the credit institution and the security of the entire financial system.

If the security procedures are excessively liberalized and sometimes happen in a situation of high economic growth, unfortunately the processes of improvement of risk management instruments may be insufficient to maintain a high level of security of the financial system.

Then transactions and investment processes burdened with too high risk levels are generated very quickly, which often led to financial and economic crises.

However, the basis is the improvement of risk management processes and adherence to the developed security procedures.

As part of this process, for several decades, credit risk quantification models, such as credit scoring, credit metrics, and value at risk, have been created and improved in finance and banking.

Paradoxically, many of these credit risk measures were created in investment banking, i.e. this kind of banking of the king is most responsible for triggering the global financial crisis.

In view of the above, I am asking you: Are credit risk quantification models such as credit scoring, credit metrics, and value at risk applicable outside of finance and banking?

Does anyone of you conduct research in this area?

Please reply. I invite you to the discussion

How is the level of systemic credit risk in the economy determined?

In order to maintain a safe level of systemic credit risk in the economy, this level is measured not by the value of loans relative to GDP only the quality of the loan portfolio in commercial banks is measured and the capital adequacy ratio determined by banking supervision institutions.

I invite you to the discussion

Will the development of data processing technology accumulated in the Big Data banking database systems improve the credit risk management process or will it contribute to the development of Shadow Banking and the use of unethical practices for the surveillance of potential borrowers?

Large commercial banks generate high financial surpluses allowing for the implementation of modern integrated teleinformatic internet banking systems, Business Intelligence data analysis systems, data processing platforms in Big Data database systems, etc.

There were already situations of unethical use of modern ICT solutions, analysis of comments on social media portals, during which the bank verified the customer's data entered into the loan application by also scanning information that the potential borrower types in social media portals.

This informal verification took place without the knowledge of a potential borrower and could then be the basis for suing the bank.

However, the bank's client is not always aware of the fact that it can be invigilated in such a way by the public trust institutions that the bank should be.

Of course, these types of cases, which we know from the media is supposedly a margin of entire banking, which can be one of the categories of a new type of unethical practices typical of the so-called Shadow Banking.

However, only part of this type of information gets to the media.

Maybe this is just so-called "the tip of the iceberg" of this problem.

The situation is similar in the situation of cybercriminals' attack on bank IT systems or electronic banking platforms.

If it is possible to keep this type of events secret, then customers do not find out about it.

This is because media only receive information about some of these types of events.

Does any of you conduct research in this area?

If so, I invite you to cooperation.

I am asking for comments

Are commercial banks already introducing sentiment analysis conducted on Big Data data collected from social media portals to the standard of customer verification procedures?

Inclusion of the sentiment analysis conducted on Big Data collected from social media portals could be an important additional information on the economic and financial situation of the potential client. This type of information can be a significant additional factor of full verification, eg creditworthiness of a potential borrower. I know that some service companies, marketing companies, insurance companies and banks include the sentiment analysis carried out on data collected in Big Data database systems collected from social media portals for verification of potential customers. But is it already becoming a standard or is it only at the design stage for now?

Please, answer, comments. I invite you to the discussion.

Has investment banking been restructured after the global financial crisis of 2008 so that another such crisis would not happen again?

I believe that the risk continues to grow in financial systems. This means that another global crisis can not be ruled out in the next few years. The financial system has not been repaired, and necessary investment programs for prudential systems have not been forced on investment banks. Large banks are becoming even larger. in autumn 2008 one of Lehman Brothers investment banks collapsed but several other similar ones earned in this crisis, in addition, there are many indications that they have contributed significantly to generating such a high systemic risk, they used the crisis to their business goals. The investment banks were not restricted from taking such high credit risk, which contributed to the outbreak of the global financial crisis in 2008. The system still remains vulnerable, the procedures are still not honestly observed. The fact that another global financial crisis will generate investment banks is almost certain. The only question is when will it happen?

Please, answer, comments. I invite you to the discussion.

Will further mergers and acquisitions in the investment banking sector increase the credit systemic risk in the economies?

The process of credit risk management improvement is implemented mainly at the level of a specific commercial bank.

Central and supervisory institutions, which include mainly central banking and banking supervision institutions, may affect some aspects of this process, correct possible excessive levels of systemic credit risk, especially when a specific bank reliably implements prudential procedures in the scope of lending or in an aggravating situation the quality of the loan portfolio caused by the downturn in the domestic and possibly global economy.

Before the emergence of the global financial crisis in autumn 2008, there was an unwritten rule in some financial circles that a large banking entity could not fail.

The declaration of bankruptcy by jeen from the largest investment banks Lehman Brothers, from which the bankruptcy will begin the global financial crisis, questioned this type of opinion referring to entities of the financial system.

Since 2008, in the period of the past decade, another spectacular major mergers and acquisitions took place in the sector of commercial financial institutions, including some of the largest banks globally.

If the supervisory and central bodies of financial systems consent to this type of transaction, is it possible to assume that central banking and banking supervision institutions of particular countries are of the opinion that this is irrelevant to the potential increase in systemic credit risk and thus the risk of emergence in the future, the next and perhaps even more negative effects of the global financial crisis?

What if one of the largest banking entities on the global scale in the future would announce a permanent loss of liquidity?

Do the central banks that are accepting this state already have prepared prudential and rescue instruments, including, for example, counted in many billion USD or Euro rescue stabilization funds in the event of the emergence of the next global financial crisis?

These financial stabilization funds are reportedly already prepared, but can a potentially larger global financial crisis than the previous one in 2008 be effectively controlled thanks in principle only to these stabilization funds?

In addition, if central banking suggests to commercial banks, including investment banks operating on capital markets, that in the event of a financial crisis will help to eliminate the potential risk of bankruptcy of many financial system entities, how these statements translate into an approach to improving the credit risk management process and to comply with banking procedures regarding lending and securities operations and compliance with good business practices?

In my opinion, such unwritten statements can increase the moral risk and reduce the pressure and need to improve credit risk management processes.

On the other hand, the merger of one of the largest commercial finance sector entities and the emergence through mergers and acquisitions of larger banks may generate an increase in systemic credit risk, the negative consequences of which in the event of another financial crisis will be more difficult to control by central banking rescue tools, if the financial reserves shaping the issue of the security of the financial system in the economy maintained by certain central banks will not grow at such a rapid pace as the increase in the balance sheet total of merging and emerging growing banking entities.

In view of the above, after the past decade from the global financial crisis of 2008, the question still remains: Will further mergers and acquisitions in the investment banking sector increase the credit systemic risk in the economies?

Please, answer, comments. I invite you to the discussion.

Why do financial institutions in some countries verify the potential borrowers in the information resources of social media websites with impunity?

Many business companies in internet marketing collect and analyze comments, posts, entries, etc. from social media portals.

It is also done by some financial institutions, banks acquiring additional information about potential borrowers and insurance companies against possible conclusion of insurance contract. Commercially operating companies and financial institutions operate in this area on the border of the law on the protection of personal data.

Until this type of acquisition of information about potential customers is legally regulated, then commercially operating companies and financial institutions will conduct such activity. In addition, the issue of the security of this type of data about users of social media portals is of particular importance, as there have been effective cybercriminal attacks that resulted in the theft of personal data of users of social media portals.

I invite you to the discussion

What are the most important determinants of the commercial banks' lending policy in your country?

The most important issue is the credit risk management for loans granted to commercial banks and the adjustment of credit policy to the quality of the loan portfolio, the clients' economic and credit standing, borrowers, business climate, customer incomes and changing systemic risk, investment in the business sector and the changing average creditworthiness of borrowers and potential customers. I described these issues in my publications.

In view of the above, I am asking you the following question: What are the most important determinants of the commercial banks' lending policy in your country?

Please, answer, comments. I invite you to the discussion.

Is it possible to combine the issue of reliability of compliance with banking procedures with operational risk and the possibility of losing liquidity by the bank?

The basic data used to determine the effectiveness of commercial banks are included in the banks' financial statements. these data relate to the bank's involvement in specific active transactions, necessary to determine the quality of the loan portfolio, to determine the quality of credit, operational, liquidity, debt, operational risk management processes, etc. An IT risk analysis should be added to this. In addition, financial statements also include data to calculate the deposit security ratio, profitability of individual categories of assets and use of available financial resources. This type of data should be combined with individual categories of estimated risk levels measured in correlation to the involvement in individual active operations. However, in the case of the analysis of the investment bank's effectiveness, it should additionally include an analysis based on risk assessment models for investment in derivatives and other capital market instruments. In this regard, many banking procedures were previously unreliably carried out which generated very high levels of credit risks and caused huge financial losses, eg in the Lehman Brothers investment bank, bankruptcy of this bank and the beginning of the global financial crisis in mid-September 2008.

I researched this problem and in my publications I confirmed that it is possible to combine the question of the reliability of banking procedures implemented in the area of risk management with sources of financial crises.

However, I would like to hear your opinion on this matter.

In view of the above, I am asking you the following question: Is it possible to combine the ethics of banking procedures in the field of banking operations with the sources of financial crises?

Please, answer, comments. I invite you to the discussion.

What happens when a deposit and credit bank becomes involved in investment banking activities?

In the situation of classic deposit and loan banking, the bank's equity translates into the bank's ability to engage in active operations, which include, above all, loans, paracrine instruments and investments in securities. In classical banking, deposit and credit, the funds deposited in deposits determine the opportunities for the development of lending. If a commercial bank operating in the classical deposit and credit banking model also develops investment banking activities, then the risk management process should include quantification of risks related to the bank's involvement in investment activities for particular types of assets, including investments in securities, derivatives and other assets that generate high credit risk. Investment banking should have appropriately higher specific provisions to cover high levels of estimated risk in order to reduce the likelihood of loss of liquidity and announcements bankrupt in a situation of a downturn in the domestic economy and markets where the bank's contractors and clients operate.

I invite you to the discussion

The issues of globalization of financial and banking systems are described in the publications:

https://www.researchgate.net/publication/323244562_Adjustment_of_Polish_banks_to_international_standards_as_a_factor_of_globalization_of_the_national_financial_system

https://www.researchgate.net/publication/320061057_THE_IMPORTANCE_OF_ECONOMIC_GLOBALIZATION_IN_THE_CONTEXT_OF_THE_DEVELOPMENT_OF_THE_FINANCIAL_SYSTEM_IN_POLAND

https://www.researchgate.net/publication/327201145_Social_and_economic_determinants_of_the_processes_of_economic_globalization_that_shape_the_development_of_the_banking_system_in_Poland

https://www.researchgate.net/publication/320074691_ADMINISTRATIVE_LEGAL_AND_SUPERVISORY_DETERMINANTS_OF_GLOBALIZATION_OF_FINANCIAL_MARKETS_AND_THE_BANKING_SYSTEM_IN_POLAND

I invite you to discussion and cooperation. Greetings

The issues of risk management in the context of determinants of the global financial crisis are described in the publications:

https://www.researchgate.net/publication/323244391_Determinants_of_credit_risk_management_in_the_context_of_the_development_of_the_derivatives_market_and_the_cyclical_conjuncture_economic_processes

https://www.researchgate.net/publication/327201116_Importance_and_implementation_of_improvement_process_of_prudential_instruments_in_commercial_banks_on_the_background_of_anti-crisis_socio-economic_policy_in_Poland

https://www.researchgate.net/publication/327201132_The_role_and_application_of_Keynesian_macroeconomic_anti-crisis_theories_in_the_context_of_development_of_the_financial_system_in_Poland

https://www.researchgate.net/publication/320074785_THE_SHADOW_BANKING_AS_AN_EXAMPLE_OF_INEFFICIENCIES_IN_THE_FUNCTIONING_OF_THE_BANKING_SYSTEM_IN_POLAND

I invite you to discussion and cooperation. Greetings

The issue of the impact of monetary policy on the stability of financial systems in the context of the global financial crisis is described in the publication:

https://www.researchgate.net/publication/320060288_ACTIVATING_INTERVENTIONIST_MONETARY_POLICY_OF_THE_EUROPEAN_CENTRAL_BANK_IN_THE_CONTEXT_OF_THE_SECURITY_OF_THE_EUROPEAN_FINANCIAL_SYSTEM

I invite you to discussion and cooperation. Greetings

Behavioral economics and interventionist monetary policy and the cyclically changing situation in the securities markets?

How behavioral economics can be used to study investor behavior in capital markets, including securities markets?

How is it that in these markets every several or a dozen or so years, there is a high re-evaluation of the valuation of financial instruments, assets, including company shares? What is the issue of the effect of the sheep's rush, which to some extent is often inspired by the appropriately constructed, liberalized offer of products and services of financial institutions?

Besides, how does it fit into the issue of the cyclical cyclical nature of economic processes, ie the volatility of economic growth of entire national economies in the long-term perspective? In addition, the issue of the various state intervention instruments applied by national governments is also important, some of which also act on consumer behavior of small investors and shareholders.

Considering anti-crisis, counter-cyclical, interventionist monetary policies based on low interest rates and central banks' buying programs for assets lost from commercial banks, it is reasonable to study the potentially high level of state intervention in the financial markets. In connection with the liberalization of the functioning of capital markets and increasingly emerging financial crises since the 1970s, the scale of active interventionist monetary policy of central banking is growing, but also in relation to capital markets, including securities markets. Therefore, deregulated and indirectly subjected to potential anticyclical state intervention, capital markets, including securities markets, are increasingly losing balance, falling into extreme market re-evaluation and undervaluation of valuations of securities, and consequently growing systemic investment, credit, etc. risks and increasingly emerging financial crises.

In view of the above, I would like to ask you: Behavioral economics and interventionist monetary policy and the cyclically changing situation in the securities markets?

Please, answer, comments. I invite you to the discussion

Should the Federal Reserve Bank in the US be the main institution shaping and leading pro-growth active state interventionism?

In principle, YES, but it should be specified precisely the framework for a possible anti-crisis launch and implementation of the policy of active state intervention. The Federal Reserve Bank should continue to fulfill its current functions. In this respect, it is the most important institution in the US in terms of maintaining financial stability in the banking system and indirectly in the entire financial system. In addition, indirectly supports inter-branch, transactional, market, business and cross-border trade and capital flows. As the Federal Reserve advises on the issue of maintaining financial stability, it also translates into the entire US economy and also to a large extent on the entire global economy while the economy The US is recognized as a key global player. On the other hand, the Federal Reserve Bank, using its monetary policy instruments and the possibility of buying back lost commercial loans and junk securities, should focus on stabilizing the situation on the financial markets rather than on actively stimulating demand for securities, which may generate another global one in the long run. financial crisis. I examined this problem and described it in my scientific publications.

In view of the above, the current question is: Should the Federal Reserve Bank in the US be the main institution shaping and leading pro-growth active state interventionism?

Please, answer, comments. I invite you to the discussion.

Should the Federal Reserve Bank in the US be the main institution shaping and leading pro-growth active state interventionism?

In principle, YES, but it should be specified precisely the framework for a possible anti-crisis launch and implementation of the policy of active state intervention. The Federal Reserve Bank should continue to fulfill its current functions. In this respect, it is the most important institution in the US in terms of maintaining financial stability in the banking system and indirectly in the entire financial system. In addition, indirectly supports inter-branch, transactional, market, business and cross-border trade and capital flows. As the Federal Reserve advises on the issue of maintaining financial stability, it also translates into the entire US economy and also to a large extent on the entire global economy while the economy The US is recognized as a key global player. On the other hand, the Federal Reserve Bank, using its monetary policy instruments and the possibility of buying back lost commercial loans and junk securities, should focus on stabilizing the situation on the financial markets rather than on actively stimulating demand for securities, which may generate another global one in the long run. financial crisis. I examined this problem and described it in my scientific publications.

In view of the above, the current question is: Should the Federal Reserve Bank in the US be the main institution shaping and leading pro-growth active state interventionism?

Please, answer, comments. I invite you to the discussion.

The above question inspired me to the following considerations:

Do the significant revaluation of stock quotes on stock exchanges occurring every few or a dozen years is an objective specific feature of this type of financial market or rather it is imperfection of these markets resulting from too high a level of liberalization and deregulation of the mechanisms of these markets, including the reduction control functions of financial supervision institutions?

Since the 1970s, the functioning of individual segments of financial markets has been successively liberalized and deregulated, including primarily the issue of investment banking, international markets and exchange rate systems, rating agencies, financial adversity institutions and financial entities and instruments operating on the securities market. During this time, the scale of the re-valuation of valuations of securities, derivatives, commodities and other assets on the capital markets reached ever higher levels, then spectacularly transformed into a strong decline in these valuations leading to a financial and economic crisis. The last financial crisis in 2008 in many respects, including numerous negative aspects, generated the unruly records characterizing the highest level of investment risk and the scale of financial losses generated by many commercial financial institutions and industrial corporations, which then under the active, interventionist, anti-crisis monetary policy of banking were financed indirectly by public finance funds. Due to this cyclical cyclical nature of capital markets, characterized by the growing amplitude of economic fluctuations during periods of bull market and bear market at high levels of overvaluation and investment risk levels and deeper global financial and economic crises, large financial institutions, including investment banks, are becoming larger entities and costs neutralizing the negative aspects of crises is paid off by the whole society, especially by the relatively less-earning middle class.

In the light of the above, encouraging discussion, I turn to you with the following question: Has the time finally come to reform the functioning process and the system of financial markets by restoring former control functions of financial supervision institutions that have been abolished, reduced since the 1970s?

Are increasingly deep financial crises derived from the liberalization and deregulation of financial markets?

Please, answer, comments. I invite you to the discussion.

In view of the above, it is also important to include in the above discussion also the following issue:

Are credit rating agencies currently reliably assessing the creditworthiness of national economies, enterprises and financial institutions, including issuers of securities? One of the factors that generated a high scale of negative aspects of the global financial crisis in 2008 was the practice of unreliably carried out assessments of the creditworthiness of national economies, enterprises and financial institutions, including issuers of securities and certain financial instruments offered to individual clients by commercial banks. Have the financial supervisory authorities developed effective instruments to enforce the reliability of credit risk analysis procedures in investment banks and rating agencies? Do financial systems work more effectively than in 2008? Do credit rating agencies reliably carry out an assessment of the creditworthiness of national economies, enterprises and financial institutions? Please, answer, comments. I invite you to the discussion. Best wishes

The above discussion inspired me to the following considerations:

Are the processes of improving banking risk management systems currently determined by the implementation of new information technologies for banking?

Improvement of credit risk management systems can currently be significantly determined, among others, by the implementation of new information technologies for banking.Are the processes of improving banking risk management systems currently determined by the implementation of new information technologies, i.e. by implementing banking data processing technologies in Big Data database systems, Business Intelligence based analytics, implementation of Blockchain technology and artificial intelligence.Do you think that the processes of improving banking risk management systems are currently determined by the implementation of new information technologies for banking?Please replyBest wishes

There is one more thing, that impacts bank loans. From the 1st of January there is an important issue concerning calcuations of ECL. Banks are obbliged to caclulate the ECL in accordance with IFRS 9 and the credit risk is a crutual issue. ECL is expected credit loss which is recognized in a statement of financial position an has an important inpact on P&L.

Dear Friends and Colleagues of RG

The most important issue is the credit risk management for loans granted to commercial banks and the adjustment of credit policy to the quality of the loan portfolio, the clients' economic and credit standing, borrowers, business climate, customer incomes and changing systemic risk, investment in the business sector and the changing average creditworthiness of borrowers and potential customers.

Do you agree with me on the above matter?

Please reply

Best wishes

Dear Friends and Colleagues of RG

Improving the credit risk management process in commercial banks is particularly important to reduce the likelihood of another global financial crisis occurring.

Do you agree with me on the matter?

Please reply

I invite you to the discussion

Best wishes

Dear Friends and Colleagues of RG

The most important issue is the credit risk management for loans granted to commercial banks and the adjustment of credit policy to the quality of the loan portfolio, the clients' economic and credit standing, borrowers, business climate, customer incomes and changing systemic risk, investment in the business sector and the changing average creditworthiness of borrowers and potential customers. I described these issues in my publications.

Do you agree with me on the above matter?

Please reply

Best wishes

Dear Friends and Colleagues of RG

The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMEN...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

Article The role and application of Keynesian macroeconomic anti-cri...

Article THE SHADOW BANKING AS AN EXAMPLE OF INEFFICIENCIES IN THE FU...

I invite you to discussion and cooperation.

Best wishes

The above question inspired me to the following considerations:

How would you rate the activation of commercial banking loans through low central bank interest rates?

How would you rate the activation of commercial banking loans, i.e. an attempt to stimulate economic activity and economic growth of the country through the policy of low central bank interest rates?

Under what economic conditions such a monetary policy may be conducted so as not to over-invest economic processes, i.e. not to overly high the level of investment processes and acceptance, most business entities have too high levels of investment risk and too high levels of credit risk by banks commercial?

How should the process of managing systemic risk in the central bank be improved and how should the process of credit risk management be improved in commercial banks so that no further financial crisis is generated?

I have answered these questions in my scientific publications whose links I have posted below.

In view of the above, inviting you to discuss the above issues, I am asking you the following question:

How would you rate the activation of commercial banking loans through low central bank interest rates?

Please reply

I invite you to discussion and scientific cooperation

Dear Friends and Colleagues of RG

The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:

Article Anti-crisis state intervention and created in media images o...

Article Soft monetary central banking policy and Plan for Responsibl...

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMEN...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

Article The role and application of Keynesian macroeconomic anti-cri...

Article THE SHADOW BANKING AS AN EXAMPLE OF INEFFICIENCIES IN THE FU...

Article ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN C...

Article A safe monetary central banking policy as a significant inst...

I invite you to discussion and cooperation.

Best wishes

In the context of the above considerations, the following question is also current:

What will be the main sources of the next global financial and economic crisis?

What will be the main sources of the next global financial and economic crisis, which could be faring in the next dozen or so years?

Will they be analogous to the crisis source as in the situation of previous global financial and economic crises?

Will the next global economic crisis be triggered by the financial crisis?

Will the next financial crisis be started similarly to the previous bankruptcy by a large financial institution, a large bank or a corporation?

Will the declaration of bankruptcy by a large business entity trigger strong drops in over-valued securities on securities exchanges?

However, will such huge reserves of money be accumulated in central banks, including those reprinted on a regular basis, that in the situation of potential loss of liquidity by a large, economic entity, the economy will not fail because it will be saved from bankruptcy in the framework of state aid, as part of state intervention?

Is the principle still valid that "the big one can not get stuck" because it will be saved by the government to prevent the emergence of a new large scale of the financial and economic crisis?

Or maybe in the perspective of the next years will also be completely different factors that generate a decline in economic efficiency and a deterioration in the emergence of a crisis in real economies?

Please reply

I invite you to the discussion

Thank you very much for your response and participation in the discussion

Best wishes

Therefore, in the context of the above considerations, the following important question appears:

Does classic deposit and credit banking ensure greater stability of the commercial financial system compared to investment banking?

Does the classic deposit and credit banking dominant in the European financial system model have better prudential systems and credit risk management systems and a safer banking system compared to investment banking, ie the banking segment which is the most developed in the Anglo-Saxon financial system model? How do these issues correlate with the quality of the loan portfolio, with the functioning of financial institutions supervision institutions, with the question of the stability of the valuation of financial instruments on capital markets?

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question: Does classic deposit and credit banking ensure greater stability of the commercial financial system compared to investment banking?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Dear Friends and Colleagues of RG

In recent years, in financial institutions, but also others, more and more funds are spent on building information security systems and improving IT risk management processes and information transfer on the Internet. In banks, improvement of IT systems risk management and information transfer processes on the Internet is treated as just as important as the management of classic banking and financial risk categories, such as credit risk management.

Do you agree with my opinion on this matter?

Please reply

I invite you to the discussion

Thank you very much

Dear Friends and Colleagues of RG

The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMEN...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

Article The role and application of Keynesian macroeconomic anti-cri...

Article THE SHADOW BANKING AS AN EXAMPLE OF INEFFICIENCIES IN THE FU...

I invite you to discussion and cooperation.

Best wishes

In the context of the above considerations, the following question is also current:

What are the dominant credit risk management methods currently used in commercial banks?

In credit risk management processes, creditworthiness assessment procedures for potential borrowers and credit risk of banks, scoring methodologies based on many economic, market and financial indicators as well as index based analysis of quantitative data from surveyed entities are applied. In the portfolio management process, systemic credit risk in banks, the Value at risk methodology is commonly used. I described the above-mentioned methodologies and methodologies in my scientific publications.

Credit risk modeling with R is a new approach that takes into account dynamically changing economic determinants of the economic processes under investigation.

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question:

What are the dominant credit risk management methods currently used in commercial banks?

Please reply

I invite you to the discussion

Dear Friends and Colleagues of RG

The issues of risk management in the context of determinants of the global financial crisis, globalization processes, technological progress and other factors I described in the publications:

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMEN...

Article Determinants of credit risk management in the context of the...

Article Importance and implementation of improvement process of prud...

Article The role and application of Keynesian macroeconomic anti-cri...

Article THE SHADOW BANKING AS AN EXAMPLE OF INEFFICIENCIES IN THE FU...

I invite you to discussion and cooperation.

Best wishes

Dear Friends and Colleagues of RG,

In the context of the above considerations, I also propose the following research problem:

Does the use of Big Data database technologies and Business Intelligence analytics enable the improvement of credit risk management processes?

Do the results of conducted analyzes using Big Data database technologies and Business Intelligence analytics enable improving the accuracy of conducted economic and financial analyzes and other analyzes of the fundamental analysis type and other analyzes of economic effectiveness, economic and financial situation, property valuation, determining the development perspectives of enterprises and improvement of credit risk management processes?

In the context of the above discussion, another question arises:

Is it possible to improve the credit risk management processes as a result of the use of Big Data database technologies and Business Intelligence analytics for fundamental analysis and other analyzes regarding the economic performance research, economic and financial situation, property valuation, determining business development perspectives? Do the results of conducted analyzes using Big Data database technologies and Business Intelligence analytics allow to improve the accuracy of conducted analyzes and increase the probability of prediction, forecasted phenomena and economic processes occurring?

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question:

Does the use of Big Data database technologies and Business Intelligence analytics for analytical processes of the analysis of the economic and financial situation of enterprises enable the improvement of credit risk management processes in commercial banks?

Please reply

I invite you to the discussion

Thank you very much

Dear Colleagues and Friends from RG

The issues of the use of information contained in Big Data database systems for the purposes of carrying out Business Intelligence analyzes are described in the publications:

Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...

Article The Big Data technologies as an important factor of electron...

Article The Technological Solutions Big Data and the Importance of B...

I invite you to discussion and cooperation.

Best wishes

Dear Friends and Colleagues of RG,

What would be the effects of the global financial crisis of 2008 if interventionist bank bailout were not used?

What would be the effects of the global financial crisis of 2008 if the interventionist rescue of financial institutions and large key manufacturing enterprises before the bankruptcy was not applied?

If the state did not launch anti-crisis state intervention programs in the situation of the emerging largest global financial and economic crises, such as during the global financial crisis of 2008, the scale of negative economic and financial aspects of such crises would be many times greater. Then it could lead to institutional, political and organizational crisis, lack of citizens' confidence in financial institutions and institutions, money would lose its economic functions, a deepened multifaceted crisis of developed economies would emerge and there would be a risk of collapse of the capitalist system.

If during the global financial crisis of 2008 interventionist financial institutions and large key manufacturing enterprises were not used to save bankruptcy, the scale of the deconcussion of many national economies would be many times greater. The scale of unemployment, decrease in production and investment decline would be much greater than that which occurred since the end of 2008. The economic crisis with a high scale of the economic downturn would also include the largest developed economies, including the US economy, if the state did not grant preferential loans to banks using multibillion aid packages and did not launch a program of junk debt collection with the highest level of credit risk. If these intervention assistance packages were not used, recession, chaos, financial systems would be effective in many large national economies, and the scale of negative effects would be difficult to estimate.

On the other hand, the costs of the multi-billion dollar state rescue programs have been passed on to the whole of society, which is not responsible for triggering the financial crisis. Whereas investment banking, in which most sources of the global financial crisis from 2008 were diagnosed, also received financial support. In addition, some of the investment banks used low-interest loans not only to stimulate lending, but also to take over other failing financial institutions and to pay additional bonuses to the managerial staff, which was unquestionably regarded as unethical and inconsistent with the principles of good relations and the essence of public trust.

In addition, a significant part of the money from the aid packages was finally invested in securities listed on stock exchanges. Thanks to this, optimism in the capital markets quickly returned. In mid-September 2008, when bankrupt Lehman Brothers investment bank, a bank with more than 100 years of history, the 4th largest investment bank in the world, there was a stock market crash that began the global financial crisis of 2008. However, after the quarters from the beginning of the stock market crash, stock prices and other stock exchange assets started to increase again to market value, after several years to break the highest historically levels of stock market indices from 2007 and autumn of 2008.

In this way, citizens as shareholders felt richer again and the problem of the origin of the financial crisis and the need for improvement of the financial system in the matter of the necessary refinement of credit risk management instruments could be described as colloquium. In this way, extra money added to the system, which should create additional economic values ​​added in the economy, did not create them because they largely channeled in the financial system, on the stock exchange markets. In connection with the above, interventionist multibillion aid packages did not contribute to a significant improvement in the functioning of the financial system in the investment banking sector and, as it later turned out, were used to save the state's financial system from the chaos of citizens.

Do you agree with me on the above matter?

In the context of the above issues, I am asking you the following question:

What would be the effects of the global financial crisis of 2008 if the interventionist rescue of financial institutions and large key manufacturing enterprises before the bankruptcy was not applied?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

In the context of the above considerations, I also propose the following research problem:

Integration of analytical processes of quantitative analysis of various financial, system and IT risk categories to optimize, implement the next stage of automation and objectivization of analytical processes.

Considering the intensive development of electronic online banking, and recently mobile, in the key area of ​​banking, ie in the management processes of various financial risk categories and other risk categories, integration of these analytical processes regarding the analysis and protection of various categories of risk can be carried out. Integration can lead to optimizing the costs of running analytical processes.

Optimization of costs when integrating various analytical processes can be implemented by employing advanced information processing technologies. Industry 4.0. The current technological revolution described as Industry 4.0 is determined by the development of the following advanced information processing technologies: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced data mining technologies.

These technologies, in combination with the Business Analytics analytics and Business Intelligence analysts, enable the integration of risk management processes in the bank, ie different financial risk categories (credit risk, liquidity risk, debt risk, currency risk), other risk categories that banks have been researching for some time (operational risk, market risk, systemic risk, political risk) and new risk categories related to the development of online electrobial banking, including mobile (IT systems risk, electronic banking systems risk, the risk of online mobile systems, the risk of data transfer on the Internet, etc. ).

The integration of analytical processes carried out at the bank's headquarters in the risk management department may lead to analytical integration of mainly quantitative analysis of these various risk categories to optimize, implement the next stage of automation and objectivization of analytical processes.

What's your opinion on this topic?

Do you agree with me on the above matter?

Please reply

I agree: future is automation with artificial intelligence (NN and RF) to evaluate customers credit scoring and take decisions using DT, leaving most of our time to solve only the most deep complex cases. I'm implementing it.

Dear Colleagues and Friends from RG, On my Research Gate profile, above, I have posted many theses and research questions about credit risk management processes. Apart from the Research Gate portal I have published over 30 scientific publications in which I described various issues, key application determinants, improvement of credit risk management processes in financial institutions. I am also examining these issues in the context of cyclically emerging financial and economic crises, including in the context of analyzing the sources of the global financial crisis of 2008 and the anti-crisis solutions used, improving prudential systems, implemented programs to save financial institutions from bankruptcy in order to limit the scale of the financial crisis. I invite you to cooperate in the field of scientific research in this area. In connection with the above, I am asking you the following question:

Are any of you interested in jointly writing a multi-author monograph on improving credit risk management processes in financial institutions?

If YES, then I invite you to cooperate, please inform me on this e-mail address: [email protected]

In the title of the email please enter: Cooperation - Monograph - CREDIT RISK MANAGEMENT.

Best wishes

Dear Colleagues and Friends from RG,

The above discussion inspired me to formulate the following question:

Can there be a strong correlation between the quality of the credit risk management process and the sources of global financial crises?

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that there may be a strong correlation between the quality of the credit risk management process and the sources of global financial crises.

Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my earlier considerations on this topic: the issue of correlation determinants occurring between the quality of conducting the credit risk management process and sources of global financial crises.

In my opinion, financial markets significantly model and discount the credit risk associated with transactions carried out in these markets. I have been researching this issue for many years and I have noticed that for some time the scale of correlation between what is happening in the real economy and the valuation of specific assets on financial markets, including capital, currency, securities and derivatives is still high. On the other hand, however, institutional, organizational, structural, functional, etc. changes that have been taking place in domestic and international financial markets since the 1970s increase the scope of investment, credit and other categories of financial and market risks during financial investment transactions and / or investing in specific assets listed on stock exchanges and other capital market segments. Banks and investment funds operating on these markets and dominating on these markets have developed advanced models for valuation of specific categories of financial, banking, market, operational risk, etc. with many years of experience. Thanks to the developed analytics based on economic knowledge, instruments of science, quantitative estimation of various categories of economic aspects of the functioning of enterprises and financial institutions, complex risk valuation models based on large quantitative data resources, the use of business analytics verifying various categories of information on Business Intelligence research platforms, Data Science, Data Analytics, Big Data as well as statistical and probabilistic research instruments, the use of selected financial and stock market indicators globally operating banks and investment funds have the possibility of precise valuation of almost any risk category. However, the problem is the issue of business ethics, and basically its excessive reduction from time to time.

Well, in a situation of prosperity lasting at least several years, both in the real economy and in capital markets, most economic entities located on both sides of the markets begin to accept too high levels of credit risk and other categories of risk. It should be added here that in this group of most entities only a few carry out risk assessment analysis processes, have risk valuation tools, run risk management processes and can accept transactions fully secured against negative scenarios on financial markets. Most entities, financial market participants do not do this, do not carry out these analyzes. These are primarily clients of financial services and products, using the services of banks and investment funds, individual clients and numerous non-financial enterprises. These entities rely on the opinion and analyzes carried out, on the recommendations and recommendations formulated for them by banks and investment funds. On the other hand, if the rating agencies belonging to banks before the global financial crisis of 2008 were able to give the media unreliable recommendations that were misleading thousands of millions of financial services clients to the media, then in such a situation the systemic credit risk could grow rapidly and also exceed optimal levels , acceptable, secured credit risk in transactions also carried out on capital markets using the financial capital of clients. Examples of breaking the rules of business ethics, failing to respect the principles of corporate social responsibility, unreliable, incomplete, improper information to clients, etc. were diagnosed in the operations of many banks before the global financial crisis appeared in autumn 2008. In addition, unreliable compliance with risk analysis process procedures has been diagnosed at almost all levels and stages of transaction processes or analytical related key issues necessary for the assessment and valuation of specific categories of financial, banking, market, operational risk, etc. From the first contact of a banking adviser helping a potential borrower complete the application for a mortgage, by maintaining a specific level of cash reserves and highly liquid investment instruments required by the regulations of the banking supervision institution, ongoing risk monitoring of the entire loan portfolio and other financial instruments, including derivatives, up to the systemic deregulation carried out in the 1990s and the central bank policy, which for many years until 2007 kept record low interest rates - diagnosed many mistakes that led to the creation of too high, not fully secured system credit risk and generating a global financial crisis in 2008.

In my opinion, financial market security systems and credit risk management processes should be realistically improved in their functioning after 2008 so that a similar global financial crisis does not occur in the future. This should be realized, the international financial system should be reformed in many aspects of its functioning to reduce the likelihood of future emergence and scale of negative effects - the next global financial crisis. Among other things, they should be strengthened by the supervisory institute over international financial systems operating nationally. Credit risk management procedures in financial systems should be improved, especially in investment banks, in the banking segment, which is most responsible for generating the global financial crisis of 2008. Unfortunately, however, this has still not been done on many issues.

In addition, the issue of reliability, objectivity, corporate social responsibility and ethics of conducting the credit risk management process is also important. The credit risk management process, including creditworthiness assessment, is moral if it is conducted fairly, ethically and fully in accordance with the procedures of an effectively conducted credit risk management process. If the assessment of creditworthiness is carried out unreliably, i.e. treated as an instrument of extremely liberalized credit policy, it may be a factor leading to a significant deterioration in the quality of the loan portfolio in banks. If this is a deliberately planned action as part of an extremely liberalized credit policy that is primarily subordinated to an increase in credit sales with a deliberate disregard for risk management procedures. In such a situation, such unreliable assessments of creditworthiness can even be described as unethical activity, which can be a significant factor leading to a significant deterioration of the financial situation of a bank. These types of situations of extremely unreliable assessment of creditworthiness on a massive scale occurred in many credit and deposit and investment banks before the global financial crisis of 2008.

As part of my doctoral dissertation, I studied the process of improving credit risk management at commercial banks operating in my country. In my country, investment banking is a small part of the banking system, so I studied the problem of improving credit risk management on the example of commercial banks representing classic deposit and credit banking. The research that I conducted in the field of improving credit risk management for the needs of my doctoral dissertation concerned the 1990s and the beginning of the 21st century. For the purposes of my dissertation, I studied the correlations between such factors as:

- procedures, instruments, determinants of the analysis of creditworthiness of enterprises applying for economic and investment loans,

- procedures, instruments, determinants of the analysis of the creditworthiness of individual customers applying for a consumer loan,

- information asymmetry between the bank and the borrower,

- the role of a credit inspector in the context of the analysis of the creditworthiness of potential borrowers applying for a specific type of bank loan,

- the issue of reliability of creditworthiness analyzes carried out by the credit inspector of potential borrowers applying for a specific type of bank loan,

- objectification, automation, computerization of creditworthiness analysis processes of potential borrowers applying for a specific type of bank loan,

- determinants of changes in the bank's credit policy adapting to changes in the economic and financial situation of the bank's customers,

- the quality of the bank's loan portfolio,

- procedures, instruments, determinants of improving the commercial bank's credit portfolio risk management process,

- the economic and financial situation of a commercial bank, the major part of revenues from the sale of banking products and generated profits comes from conducted lending activities,

- analysis of business cycles, with particular emphasis on the change in the level of economic activity in the enterprise sector, i.e. the main clients of commercial banks, which obtain a significant part of their revenues from the sale of business loans,

- the development of share prices listed on the Stock Exchange of the examined banks, i.e. changes in the level of market valuation of the examined banks.

Summary of the research and the results obtained from the research and interesting conclusions I posted on the Research Gate portal. After defending my dissertation, I continued my research on the issue of improving credit risk management at commercial banks in the analysis of correlation with various factors surrounding the banks, affecting the economic and financial standing of bank customers. The conclusions that I wrote in my doctoral dissertation pointed out the key issues that commercial banks should improve in their lending activities to reduce the likelihood and scale of portfolio and systemic credit risk increase and to avoid losing liquidity and serious financial problems. I defended my PhD thesis for a few years against the appearance of the global financial crisis in 2008. The conclusions contained in my doctoral dissertation contained important suggestions regarding key aspects, instruments, determinants, directions of the process of improving credit risk management in commercial banks. These conclusions are still valid. In addition, I continued research for the purposes of my dissertation in the following years. After the emergence of the global financial crisis in 2008, I also examined lending and investment activities at financial institutions, including investment banking, which played a key role in increasing credit risk significantly above optimal levels, secured in reserves. In addition, in my publications posted on the Research Gate portal I also pointed to other sources of the global financial crisis of 2008 and pointed out the key issues in the process of improving credit risk management and investment activities carried out in banks. I pointed out, among others, the role of monetary policy, systemic liberalization and deregulation regarding the activities of commercial banks, including investment banks, which have taken place since the 1990s, as well as other important factors and sources of the global financial crisis of 2008. The conclusions of the research I published in scientific publications that are available on the Research Gate portal. I invite you to cooperation.

A significant increase in the level of debt is often a source of the financial and economic crisis. Many examples are known to support this thesis. In the past, a significant increase in the level of debt has caused serious financial and economic problems in many economic entities, including financial institutions as well as other types of public entities, organizations and institutions. Serious financial problems also led to a permanent loss of financial liquidity and the announcement of the insolvency of a particular business entity, company, corporation, bank, etc. This problem applies not only to entities surveyed in microeconomic terms, i.e. individual economic entities. This problem has also often involved the macroeconomic approach, when the high debt of public finances led to the declaration of the state's financial insolvency, i.e., e.g. declaration of the state's insolvency towards the creditors of foreign financial institutions that have previously granted loans or purchased treasury bonds. I study the issues in the context of analyzing the sources of the global financial crisis that appeared in the autumn of 2008. When this crisis developed, many companies, corporations and banks had serious financial problems, which were caused by a strong increase in debt. Then, if the state had not launched various rescue programs for banks and corporations, many of these entities would have collapsed and the global financial crisis of 2008 would have been even more serious than it had been. On the other hand, the effect of launching these rescue programs was a significant increase in public finance indebtedness in many countries. This increased state of public finance indebtedness in many countries persists to date. In some countries, this level of public finances debt is so high that without high economic growth it is practically impossible to quickly reduce this debt. Therefore, such countries are still exposed to the emergence of further economic crises if the current rate of economic growth drops significantly. In order to improve this situation, governments of individual countries are trying to activate entrepreneurship and innovation in their countries. However, this activation also requires spending further amounts of money from the state budget for development purposes. However, it is necessary for the economic growth to improve, for the income, consumption, investments to increase, for the unemployment to fall, etc. Thanks to this type of effective entrepreneurship activation and creation of facilitations for the development of business entities, it is possible to gradually reduce the level of debt both in microeconomic terms individual business entities as well as in macroeconomic terms, i.e. in the situation of analyzing the systemic debt risk in the entire economy and in relation to the state of public finance indebtedness. I am researching this issue in correlation with the issue of improving credit risk management in financial institutions. Mistakes made in many business entities and institutions, including public institutions, also in central banking led to a significant increase in crediting of consumption, purchase of flats and houses, crediting economic enterprises and new investment projects before 2008 and led to the largest global financial crisis in the history of development economic world. It is therefore necessary to constantly improve the credit risk management process as well as other categories of financial, banking, market, operational, IT systems, etc.

In connection with the development of economic globalization in international financial systems, the increase in the scale of mergers and acquisitions in the field of capital transactions in the financial sector, which leads to the emergence of larger and larger banks operating globally, in addition to deregulation in financial markets, the growing importance of monetary policy in the context of interventionist economic policy, the development of international liquid exchange rate systems on currency markets, the development of derivatives used not only to hedge other financial transactions but also to speculative activities on capital markets, etc. since the 1970s, systemic credit risk has been increasing and the frequency and scale of domestic and supranational occurrences financial and economic crises. In connection with the increase in systemic credit risk, the importance of effective operation of financial supervision institutions and improvement of the credit risk management process is increasing.

In the 1990s, serious mistakes were made in allowing investment banking to be combined with the classic deposit and credit banking system in the Anglo-Saxon financial system, thus lifting restrictions and instruments ensuring a high level of system security in commercially operating financial systems. These types of erroneous changes in prudential regulations that reduce the scope of effective operation of financial supervision institutions and credit risk management systems increase the likelihood and scale of negative effects of subsequent financial and economic crises. To this should be added the serious mistakes that were made in shaping monetary policy and allowing for a rapid increase in public debt in public finances even before the global financial crisis emerged in autumn 2008. In the context of these facts and the increase in systemic credit risk, there are considerations whose main purpose is to verify the research thesis on the question of the possible excessive growth of the commercially operating financial system in modern economies and on an international scale, far above the needs and macroeconomic conditions of currently functioning national economies. Therefore, in order to verify this type of theses, one should consider the answer to the following question: Is the over-expanded commercially operating financial system operating more and more speculative on financial markets, including not only credit but also securities, derivatives and currency markets, speculative investments in raw materials, etc. in modern national economies and on a global scale may displace classically implemented investments involving the implementation of investment projects leading to the creation of real, direct, sustainable, investment financial economic goods by enterprises (financed from non-bank financial sources) and by the state (investments financed from public funds, with particular emphasis on national economies with their own national currency)?

The process of improving credit risk management is implemented mainly at the level of a specific commercial bank. Central and supervisory institutions, which mainly include central banking and banking supervision institutions, may affect some aspects of this process, correct possible excessive levels of systemic credit risk, especially in a situation where a specific bank unreliably implements prudential procedures in the field of lending activity or in a deteriorating situation loan portfolio quality caused by the recession in the domestic and possibly global economy. Before the emergence of the global financial crisis in autumn 2008, there was an unwritten rule in some financial environments that a large banking entity could not fail. The declaration of bankruptcy by one of the largest investment banks, Lehman Brothers, whose bankruptcy began with the global financial crisis, questioned this type of opinion regarding financial system entities.

To analyze the correlation of the effectiveness of the process of improving the credit risk management process in commercial banks and the shaping of monetary policy by the central bank, the key issue is the relationship between central banking and commercial banking that has been built over the years. For example, the issue of implementing central bank assistance functions for commercial banks in the event of a significant increase in liquidity and debt risk, problems with the effective management of assets and liabilities and / or in the case of high risk of bankruptcy. In such a situation, a commercial bank may ask the central bank for help in the form of low-interest loans, interest-bearing loans on preferential terms, while increasing the scope of financial management control. In addition, the possibility of buying commercial junk securities and other assets and outstanding loans from banks. This type of central banking assistance activity towards commercial banks, including investment banks, has been used on a large scale since September 2008, i.e. since the beginning of the development of the largest global economic crisis in the history of global financial crisis. However, it is possible to diagnose situations in which as part of this assistance activity of the central bank towards commercial banks, including investment banks, the moral risk and disregard of the principles, methods and procedures of the banking risk management process, including credit risk management, liquidity risk, may be neglected. debt risk and other risk categories.

For example, if central banking suggests to commercial banks, including investment banks operating on capital markets, that in the event of a financial crisis it will help to eliminate the potential risk of bankruptcy of many entities of the financial system, then how these declarations translate into an approach to improving the credit risk management process and to comply with banking procedures regarding lending and securities operations and to comply with good business practices? In my opinion, such unwritten declarations can increase moral risk and reduce pressure and the need to improve credit risk management processes. Does any of you examine this issue in the context of analyzing sources, factors of financial and economic crises? I am researching this issue and invite you to cooperation. I described the results of my research in scientific publications that are available on the Research Gate portal. I invite you to cooperation.

In line with the above, in my opinion there may be a strong correlation between the quality of the credit risk management process and the sources of global financial crises.

Do you agree with me on the above matter?

I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.

In view of the above, I am asking you the following questions:

- Can there be a strong correlation between the quality of the credit risk management process and the sources of global financial crises?

- The issue of reliability in the implementation of credit procedures, liberalization of the credit policy, effectiveness of the credit risk management process and the quality of the loan portfolio?

- Has greater expenditure in commercial banks been allocated to improving the risk management of data transfer security in online banking in recent years than to improving credit risk management?

- Has prudential instruments been improved after 2008, the functioning of supranational and national supervisory institutions on financial systems and credit risk management procedures in financial systems improved?

- Is a significant increase in debt often a source of financial and economic crisis?

- What is the impact of monetary policy of central banking on the lending policy of commercial banks?

What do you think about this topic?

What is your opinion on this topic?

Please reply

I invite you to discussion

thank you very much

Best wishes

Dariusz Prokopowicz

Dear Colleagues and Friends from RG, In the context of this discussion, I would like to add the following question: In recent years, has you managed the risk of information systems, cybercrime risk in electronic internet banking, including mobile banking in commercial banks, from credit risk management?

What is your opinion on this topic?

Is there any research being done on this topic?

Thank you very much and best regards,

Dariusz Prokopowicz

More than 10 years have passed since the global financial crisis of 2008. At that time, the level of ignorance of the issue of the fair use of credit risk management instruments and systems in investment banking was analyzed. Recommendations were made to improve the systemic, institutional, normative etc. approach to particular aspects and instruments of credit risk management systems. However, the only thing left to do is to diagnose the scale of application of these recommendations in order to increase the level of security of financial systems and significantly reduce the risk level of another financial crisis. The conducted research shows that only in some aspects the above-mentioned recommendations concerning the improvement of systemic, institutional, normative etc. issues and instruments of credit risk management systems were applied. I have included the results of the research in my publications available on my Research Gate profile. I invite you to research cooperation.

Best regards,

Dariusz Prokopowicz

When symptoms of the inevitable occurrence of the world's worst financial crisis appeared in 2007 in the USA, in some countries, including the country where I operate, commercial banks granted Swiss franc loans for the purchase of real estate. In the middle of the first decade of the 21st century, economists independent of financial institutions already signaled the inevitable, impending financial crisis. However, the predominantly commercially operating financial sector ignored these warnings as the speculative boom in the residential construction and sale sector was just beginning. As the pace of economic growth began to slow since the late 1990s, much of the industry from highly developed countries migrated to developing countries, following a small turn-of-the-century financial crisis generated by the NASDAQ dotcom stock market crash and an increase in public security spending From the beginning of the 21st century, public debt began to grow strongly, etc. it became necessary to develop and implement a new plan of interventionist, pro-development socio-economic policy. It was decided that the best solution in this matter would be to generate an economic boom in the housing sector. However, instead of using pro-market instruments, i.e. multi-faceted strengthening of the operation of markets, supporting entrepreneurship, another interventionist model was chosen, aimed at creating a system of state guarantees for commercial and investment banks, which not only granted mortgage loans for the purchase of housing real estate, but also participated in the growing value of credit derivative securities, e.g. subprime bonds. Credit derivatives of securities were originally intended to be a source of additional money for granting subsequent mortgage loans, when commercial banks operating in the safe, classic deposit and credit banking model ran out of money from bank deposits. At that time, as part of the money obtained through the use of credit derivatives, new mortgage loans were granted just before the outbreak of the global financial crisis, mainly for borrowers without creditworthiness. This was possible through the deliberate simplification of lending procedures by ignoring the basic principles of financial security and credit risk management instruments. On the other hand, credit derivatives have become an instrument for banks to generate above-average, speculative extraordinary profit. Investment banks have taken advantage of this opportunity as entities operating commercially in partially and slightly regulated financial markets. Investment banks took advantage of the opportunity created by the state as part of pro-development state intervention. However, since serious mistakes were made at the very beginning of planning pro-development state intervention, instead of generating moderate, safe economic development, it generated rapid, speculative asset growth in capital markets, including the stock and commodity markets.

Best regards,

Dariusz Prokopowicz

In the context of the above issues, I would like to ask you: Does any of you conduct research on specific potential or real changes in lending policy and / or changes in the field of credit risk management used in commercial banks and / or investment banks in the context of economic recession, economic crisis, decline in economic activity caused by the SARS-CoV-2 (Covid-19) coronavirus pandemic? Have any academic papers, articles or monographs been published on the subject? I am asking for an answer in this matter.

Best regards,

Dariusz Prokopowicz

Dear Antonio Quintino,

Thanks for the answer. I am glad that you agree with me on the implementation of new ICT and Industry 4.0 information technologies in banking, including the improvement of the credit risk management process.

Thank you very much,

Best regards,

Dariusz Prokopowicz

The current president of the central bank in the country in which I operate, i.e. the National Bank of Poland, opposed raising interest rates in September 2021. He said then that perhaps the first interest rate hikes will appear in about a year's time. At that time, the number of mortgage loans taken by citizens from commercial banks was still growing at a record rate. Compared to the European Union, Poland has the highest percentage (approx. 98%) of mortgage loans granted at a variable interest rate. For example, commercial banks in the US made most of their mortgage loans at a fixed rate. Paradoxically, in a country where during the global financial crisis of 2008 there was a significant increase in the level of credit risk and increased criticism of the imperfection of credit risk management processes, the financial system is safer than in Poland, where almost all mortgage loans are granted with a floating interest rate and the domestic exchange rate is PLN currencies are one of the most volatile in the forex markets and the current monetary policy is also characterized by a high level of volatility, volatility and unpredictability. Since October 2021, the central bank of the National Bank of Poland has raised interest rates five times, which from a record low level of 0.1 percent. the benchmark interest rate rose to the current level of 2.75 percent. and this is not the end of interest rate increases. Well, this is not the end of interest rate increases in the next few months, the above-mentioned President of the NBP Central Bank also said at the beginning of February 2022, who in September 2021 reassured citizens, including borrowers taking out mortgage loans in PLN, during press conferences, that There will be no interest rate increases in the coming months and quarters. So, are the macroeconomic analyzes of the analytical teams at the central bank failing, or are the links between the central bank's monetary policy and the government's economic policy too strong? This research question will be valid for the next several years, which is related to the likely second term of office of the current president of the central bank, the National Central Bank in Poland. At present, however, many borrowers who took out mortgage loans in 2021 at record low interest rates and took out these loans in the domestic currency of PLN are now experiencing their family troubles. The installments of these loans are growing rapidly from month to month. A significant part of these borrowers are already in additional employment, more work on 2 and 3 jobs in order to have money to pay off the growing mortgage installments and not to lose the purchased real estate, house or apartment. A significant part of the aforementioned borrowers consider the decision to leave the country in search of a better-paid job abroad, so as not to lose the real estate they purchased on loan. The percentage of domestic mortgage borrowers who will have problems with repayment of these loans will grow rapidly in the coming months if the central bank continues the ongoing process of rapid interest rate increases. Unfortunately, it cannot be ruled out that the NBP central bank will not change its strategy, which has suddenly changed from dovish to hawkish monetary policy. This is due to the limited degree of operation of the interventionist anti-inflationary policy instruments of the government programs, the so-called Anti-Inflation Shields. As part of the so-called Anti-Inflation Shields, the government implements an interventionist fiscal policy consisting in a panicky reduction of VAT, i.e. taxes on the sale of fossil fuels, and measures to support the lowest-income citizens in the field of public financial aid in the form of subsidies to the costs of heating houses and apartments have been used. However, if with the help of the so-called Anti-inflationary shields will not manage to limit the scale of inflation growth and reverse this unfavorable macroeconomic trend, then further interest rate hikes at the NBP central bank are practically inevitable. It is highly probable that the increase in inflationary pressure at an elevated level will continue for the next few months and possibly also the next few quarters. it is highly probable because some companies and entrepreneurs only at the beginning of 2022 or now consider and implement shifting the rising costs of production onto consumers by increasing the prices of their products and services. Additionally, the ending forms of government support as part of the financial, non-returnable state aid granted through the so-called Crisis Shields and Financial Shields, which were used by most companies and enterprises in the country in 2020-2021, also have an impact in this matter, i.e. raising the prices of products or services offered and manufactured and directed to the markets. The inflationary pressure is and will be high, since about PLN 300 billion has been allocated to domestic companies and enterprises as part of the aforementioned non-returnable public financial aid, which is equivalent to 60 percent of the total. the value of the entire national central state budget. And the most interesting statements of the current NBP president during the press conference in February 2022 include, for example: that these interest rate hikes and further increases (ed. to the likely soon) level of 3.5 or even 4.0 percent. we will not do the damage (ed. ie the central bank in agreement with the government for citizens). This is at least strange, since the NBP's inflation target is 2.5%. (+/- 0.5%) and the installments of mortgage loans granted in PLN are currently growing rapidly from month to month. No wonder that international financial institutions give low ratings to the current NBP governor. One more important point should be added to the above. Well, we should consider what the monetary policy of the central bank may lead to in such an unstable, non-transparent and unpredictable manner? Besides, is the issue of systemic credit risk management in the context of commercial banking taken into account within the framework of the monetary policy pursued in this way? I wrote about the role and importance of improving the systemic credit risk management process in my publications before the global financial crisis of 2008. I conduct research on this issue. I have published my conclusions from the research in scientific publications that are available on the Research Gate portal. I invite all those who study this subject to research cooperation.

Best wishes,

Dariusz