PROBLEM LOAN MANAGEMENT STRATEGIES OF A COMMERCIAL BANK

Abstract

The purpose of the article is to substantiate effective strategies for managing problem loans of commercial banks in the conditions of economic instability of business development during the martial law in Ukraine, which is extremely relevant due to the strengthening of inflationary processes, devaluation of the hryvnia, decrease in business activity of business entities, deterioration of their payment discipline , emergence of problem debt, relocation of business and loss of assets, increase in the share of non-performing loans (NPL) in the structure of the credit portfolio of banks, decrease in the level of capitalization and profitability of banking institutions. The article uses statistical research methods to substantiate changes in the indicators of the share of non-performing loans and financial restructuring of debtors; methods of analysis, synthesis and generalization when justifying strategies for managing problem loans of commercial banks; an abstract-logical method for substantiating the author's proposals and conclusions. The article specifies the essence of problem credit according to the requirements of national and international banking practice. A statistical review of changes in the share of non-performing loans in the structure of banks' credit operations by respondents was carried out, as well as an assessment of changes in the financial restructuring of debtors during the study period. The author's definition of the strategy of managing problem loans of a commercial bank is provided, which specifies the stages of its practical implementation. It has been proven that the settlement of problem credit debt involves the application of appropriate strategies based on restructuring, a lawsuit, write-off or sale of problem loans of commercial banks in accordance with management principles and taking into account the level of credit risk and the class of the debtor. The main changes in the national legislation in the settlement of overdue debt and management of problematic bank loans during the period of martial law in Ukraine are presented. It was emphasized that the strategies for managing banks' problem loans are implemented in accordance with the principles of economic expediency; priorities; timeliness; structuredness; adequacy; comprehensiveness and comprehensiveness; efficiency; monitoring, and the class of the debtor directly affects the choice of the bank's problem loans management strategy and determines the specifics of tactical actions in its implementation, which constitutes the practical value of the study and requires further development.