AREAS OF RESEARCH ON THE RISKINESS OF CREDIT OPERATIONS IN THE BANKING BUSINESS

Abstract

The article is devoted to the characterization of credit risks in banking in general, as well as the search for effective ways to reduce. The most effective and most common ways of analyzing credit risks and choosing the right methods for measuring them are identified. The internal and external directions of minimization, ways of reduction of negative influences of credit risks on banking activity as a whole are outlined. The value of NBU standards designed to regulate the amount of credit risk in banking is analyzed. Ways to identify the riskiness of credit operations through the analysis of the quality of the bank's loan portfolio are presented. To assess the effectiveness of credit operations, it is important to determine the quality of credit operations by calculating the amount of non-performing loans, the so-called NPL. The problem of non-repayment of loans is not new to the banking system in recent years. But paradoxically, the country's largest bank has the largest share of these problem loans, making it the most unprofitable. On average, in 2018, 85.11% of all Privatbank loans are non-performing, which confirms the hypothesis that the presence of systemically important banks is detrimental to the economy due to the excessive concentration of risks in these banks. Since 2014, the deterioration of the economic situation in the country and, as shown by our analysis, inefficient management of the loan portfolio of CB "PrivatBank" has significantly affected the quality of its lending operations. Thus, during the last 5 years of the bank's activity the share of overdue loans has significantly increased, the level of credit risk has also tended to increase. It is concluded that the bank can act in several ways when lending: either accept credit risk or minimize it; credit risks can be minimized using internal and external minimization methods, each of which is appropriate and effective. Therefore, to reduce the credit risk of the bank it is necessary to make a detailed risk analysis, select the necessary methods of measuring it and ways to minimize it in order to avoid its negative impact on the bank as a whole. However, the complexity of this issue and a number of specific aspects require further scientific research to minimize credit risk.