FEATURES OF BANK CREDIT RISK MANAGEMENT IN CONDITIONS OF FINANCIAL UNCERTAINTY

Abstract

The article substantiates the necessity of developing an organizational and economic mechanism for credit risk management. Based on a comprehensive study and systematization of scientific sources regarding the conceptual foundations of the organizational and economic mechanism, an original definition of the organizational and economic mechanism of credit risk management was provided, and its primary purpose and objectives were substantiated. Through a comprehensive analysis of the banking institutions' functioning specifics, the organizational and economic mechanism of bank credit risk management was structured as a two-level system combining the formation and functioning subsystems, with their primary elements identified. It is noted that the organizational and economic mechanisms of credit risk management function as a unified integrated system, where each element is closely interconnected with others. The organizational mechanism provides a structural basis for managerial decision-making through clear coordination of various bank departments, establishing a hierarchy of powers and responsibilities, and implementing modern work organization forms. In turn, the economic mechanism includes financial instruments, risk assessment methods, a system of limits and standards that ensure quantitative assessment and control of credit risks.

Having developed the mechanism's structure and examined the main elements of the bank's organizational and economic mechanism for credit risk management, we will develop its model. The proposed organizational and economic mechanism for credit risk management should become an integral component of stable banking institution functioning, ensuring risk management effectiveness, improving credit portfolio quality, and the bank's financial security. This mechanism creates a methodological and operational base for effective credit risk management, ultimately contributing to the achievement of the banking institution's strategic goals and ensuring its stable development.