Crisis Risk Exposure Management, the case of UniCredit Bulbank

Abstract

Following the first Introduction chapter, the Rationale, Objectives and Questions chapter defines the purpose of this work, research questions and objectives that will be considered in the dissertation, and mainly how UniCredit Bulbank operates under the deteriorated economic and financial situation, particularly the policies that the largest bank in the country leads to cope with the situation, and the decline in the quality of its loan portfolio. The third chapter, Literature review, focuses on the existing relative literature for the banking sector and the theoretical background on the determinants of main exposures that commercial banks face; general principles and legal frameworks, highlighting the regulation on the credit risk and decline in the loan portfolio of UniCredit Bulbank. Emphasize is put on the critical analysis of the published literature in order to reveal contradictory views on the topic discussed. The Methodology chapter outlines the main approaches, strategies and data collection methods applied in the dissertation. The fifth chapter focuses on the Secondary data results, clarifying the regulative and foreign impact on the largest bank in Bulgaria, its performance for the period 2007-2010 and the stabilization measures it applies regarding its loan risk exposition. The findings from the Primary research with respective illustrations are shown in chapter 6. Moreover, there is a subsequent seventh chapter that consists of critical analysis linking the literature review with the research findings from the secondary and primary data. As a result, the efficiency of UniCredit Bulbank on the banking sector in Bulgaria will be introduced along with the factor-drivers that are most significant. The last two chapters wrap up and suggest recommendations for additional research, based on the literature review remarks and the results provided in the three Findings and Analysis chapters- 5, 6 and 7.