FUNCTIONALITY OF THE SCORING AND RATING MODELS IN THE LIGHT OF IMPLEMENTATION OF NEW REGULATIONS (Funkcjonalnosc modeli scoringowych i ratingowych w swietle implementacji nowych uregulowan)

The paper's intention is to present the functionality of the scoring and rating models approved by the New Capital Agreement (NCA) and the Capital Requirements Directive (CRD) in the context of credit risk management. The know-how transfers initiated the process of superseding the traditional credit risk assessment methods by new methods. The scoring and rating models are being successfully used by foreign banking institutions. A synthesis of views on credit risk assessment methods (credit scoring and credit rating) also results from many advantages that occur as well on the side of the banking institutions as on the side of their clients. The credit scoring and credit rating models automatize the banking credit procedures by providing an objective assessment of all the credit applications. In addition, standardized scoring and rating models reduce the costs related to the credit applications analysis. The existing interest in modem methods of credit risk quantification in the period of implementing the NCA/CRD inspired the authoress to formulate the thesis that the scoring and rating models would continue to enjoy interest on the part of the domestic banking institutions (i.e. co-operative banks). The complicated procedures of determining the capital adequacy prescribed by the CRD will make a stimulus to implementation of the models in question by the financial institutions that have hitherto been using traditional creditworthiness assessment methods, because the new methods simplify and accelerate the analysis of credit applications and have been included in the framework of admitted credit risk quantification methods for internal ratings. The universal functionality of scoring and rating makes the models more and more popular and demanded. In the long run, automation of processes and an elastic offer adapted to the client's profile will decide on the financial institution's competitive position. Wherever there is need for automatism and maximum objectiveness, the scoring- and rating-based assessment win most probably find new advocates.