AUDIT OF THE COMMERCIAL BANK CREDIT PORTFOLIO: COMPARATIVE ANALYSIS OF DOMESTIC AND FOREIGN APPROACHES

Abstract

The article highlights the results of the conducted analysis, which was aimed at comparing the existing practices and systems for auditing the credit portfolio of commercial banks in Ukraine with the corresponding approaches to setting and solving the problems of auditing credit activity in commercial banks abroad. At the same time, in Ukraine there are certain inconsistencies with Western practice in the normative and legal regulation of the organization and the conduct of internal audit. They also need a methodical and analytical solution to the issue of formalization of this type of control over the effectiveness of banking activity and its optimization. The study showed that the practice of applying the approaches and models existing in foreign practice to the work of domestic banking institutions without a properly conducted analysis of the prerequisites of the relevant decisions is widespread. Comparison of foreign approaches and methods of auditing credit portfolios made it possible to identify important aspects that can contribute to improving the efficiency and reliability of audits. This helps to ensure a more accurate and objective assessment of the risks and stability of the banking system. It is proven that despite the positive trends in the development of the audit of the credit portfolio in Ukraine, both in the direction of improving regulatory and legal support, and the development of applied methods at the level of individual commercial banks, there are certain challenges and prospects for further improvement of this line of work. Common and distinctive features have been identified, which can become the basis for developing recommendations for further improvement of the audit system of loan portfolios in Ukrainian commercial banks. The use of technological innovations, the development of more accurate methods of risk assessment and the adaptation of international standards can contribute to improving the quality and efficiency of the audit. Among the promising areas of further research in this area, the development of applied methods for auditing the credit portfolio using the capabilities of modern economic and mathematical tools and the development of appropriate management decision support systems are highlighted.