In recent years many countries have experienced stagnation or even decline in the amount of mortgage credits granted to households. The credit-granting process has become significantly complicated, less transparent and excessively time consuming. This study seeks to define the improvement opportunities for credit granting through creation of a simple, transparent and accountable framework of decision-making process. To achieve this purpose the authors used qualitative method – structured interview and graphical tools – decision tree. The developed framework makes it possible to identify areas of the credit granting that might have potential for considerable improvements. The empirical results of the study indicate that decision-making process in credit granting has considerable potential for improvements. The developed framework is supposed to help commercial banks to improve the quality and efficiency of the decision-making process in the credit granting and reduce cost of credit granting process. This is possible to achieve by cutting down the duration time of alternative solutions with negative outcome – credit denial. This research introduces a valuable framework of transparent and accountable model of decision-making process in the credit granting. The authors have found that the introduced framework is suitable not only for commercial banks but also for a wide range of organizations having similar complicated and multiple staged decision-making processes.
Sustainable economic development isbased on the favourable and stable business environment that promotescompetitiveness of companies. Commercial banks facilitate the capital flow fromthe less efficient sectors of the economy and businesses to more competitiveindustries and enterprises. The purpose of the research is to analyze the dynamicsof the Baltic States’ GDPs during years 2005–2010and to test the GDP correlation with the loans issued by domestic commercialbanks to the businesses. The key results of the analysis provide evidence aboutthe mutual relations between the leading and influencing factors in GDP andissued loans and serve as a basis for developing proposals on fostering the recoveryof Baltic States’ economies. The Granger testanalysis performed for the aggregate GDP and lending, as well as for six industries,provides controversial results and indicates that output in some industries hasmutual relationship with the availability of financial resources, however thebusiness sector development leads to the increase of credit granting thus ensuringthe development of the sector. The methods applied in the research comprise thesystematic, logical and comparative analysis, analysis of statistical data,expert method and generalization, as well as the econometric Granger causalitytest method.