ASSESSMENT OF THE STABILITY AND QUALITY MANAGEMENT OF THE CREDIT PORTFOLIO OF A SYSTEMICALLY IMPORTANT BANK IN THE CONDITIONS OF MARTIAL LAW

Abstract

The article examines the assessment of the stability and quality management of the loan portfolio of a systemically important bank under martial law, which makes the study relevant in the context of prolonged economic instability and military risks in Ukraine. The purpose of the study is to analyze the dynamics and quality indicators of the loan portfolio of PrivatBank during 2023-2025, identify the main factors influencing the level of credit risk and financial stability of the bank, as well as develop recommendations for improving the efficiency of loan portfolio management in crisis conditions. The study uses methods of economic analysis, comparison, statistical analysis, coefficient analysis and graphical interpretation to assess the structure and quality of the loan portfolio, the level of problem loans, liquidity indicators, capital adequacy and concentration of credit risk. The results of the study showed that martial law, inflationary processes, deterioration of borrowers' solvency and macroeconomic instability significantly affected the quality of the bank's loan operations and increased the level of credit risks in the banking sector. At the same time, it was found that an effective risk diversification policy, the formation of reserves for expected credit losses, the digitalization of banking services and the strengthening of internal control systems contributed to maintaining the financial stability of the bank. Particular attention is paid to the analysis of the dynamics of problem loans, changes in the structure of the loan portfolio by categories of borrowers, as well as the bank's ability to maintain a sufficient level of liquidity and capital in wartime conditions. The practical significance of the article lies in the development of recommendations aimed at improving the quality management system of the loan portfolio of a systemically important bank. The proposed measures include strengthening the procedures for monitoring borrowers, improving credit risk assessment mechanisms, expanding restructuring programs for borrowers affected by military actions, optimizing the policy of forming reserves and increasing the efficiency of internal banking control. The need for further adaptation of the bank's credit policy to modern economic challenges and military threats is substantiated. It was emphasized that ensuring high quality of the loan portfolio and maintaining the stability of systemically important banks are key prerequisites for maintaining the stability of the banking system and supporting the post-war recovery of the Ukrainian economy.