MANAGEMENT OF CREDIT RISKS OF BANKING INSTITUTIONS UNDER THE CONDITIONS OF MARITAL STATE
DOI:
https://doi.org/10.31891/mdes/2024-11-22Keywords:
credit risk, credit portfolio, non-performing loans, credit risk managementAbstract
Military actions on the territory of Ukraine caused significant and unpredictable changes, both in the economy and in the financial sphere. The activity of banking institutions in the conditions of martial law is inextricably linked with various types of risks, among which credit risk occupies a dominant place. Losses from credit risk can affect not only the financial stability of an individual bank, but also the stability of the banking system as a whole. Therefore, the substantiation of the theoretical provisions and methodological principles of bank credit risk management to ensure the stability of the banking sector becomes an important task, the solution of which makes it possible to ensure the stability of the banking sector, which is a priority task for the economy of any country. The article analyzes the dynamics of non-performing loans in the Ukrainian banking system during the war. The dynamics of the specific weight of non-performing loans (NPL) in the credit portfolio of the banking sector were analyzed. The amount of coverage by public sector banks of the non-performing loan portfolio of individuals and legal entities with credit risk in 2024 was studied. Peculiarities of credit risk management of a banking institution are considered. The main methods of assessing the borrower's creditworthiness by banking institutions are defined. Proposed directions for improving the bank's credit risk management under martial law conditions, including: formation of a risk management policy to determine the strategy and approaches to credit risk management; strengthening requirements for the bank's ownership structure and procedures for concluding credit agreements to ensure transparency and compliance with regulations; increased control over the bank's lending operations for risky industries and regions; development of a system of bank limits for effective distribution of credit risk; definition of a system of indicators for credit risk assessment and development of its monitoring system.
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