Determinant of loans portfolios’s risk in Agribank

Abstract

Lending is a traditional and main business of commercial banks. Loan portfolios account for the largest proportion of
commercial banks’ total assets and bring the most income to commercial banks. Besides these benefits, loans portfolios
exposure to many risks, which significant influences on the sustainable existence and development of the banks.
Regardless of causes, such as easing lending conditions, poor credit risk management systems, historial data indicated
that lending portfolios are always the main reasons leading to losses and bankruptcies of commercial banks