PROBLEMS OF RISK MANAGEMENT AND CREDIT SECURITY OF BANKS IN CONDITIONS OF WAR AND ECONOMIC INSTABILITY

Abstract

The article considers the basic essence of the concept of “bank credit security”, which is defined as a set of measures or directions aimed at minimizing the negative risks associated with the issuance, management and repayment of loans to individuals and legal entities. It is determined that the main structural elements of credit security management by a banking institution are: formation of a loan portfolio, credit policy and credit strategy; identification of risks and factors affecting the level of credit security; insurance against credit risks: formation of reserves, diversification, setting limits, cooperation with third parties, etc. The main principles of credit security management are as follows: minimization of credit risks, creditworthiness assessment, loan collateral, loan portfolio differentiation, continuous monitoring and control, adaptation to changes in the external environment, transparency and awareness, minimization of risk concentration, innovation and use of modern technologies.

It is investigated that the level of efficiency of credit security management of banks is influenced by external and internal factors: war, constant shelling, migration, interest rates, currency fluctuations, unemployment, changes in legislation, the state of financial markets, the introduction of technological innovations and digitalization, the level of borrower assessment, the bank's credit policy, the financial condition of borrowers, the quality of the loan portfolio, the qualifications and experience of credit analysts, credit risk management strategies, and others.

In 2019-2024, the positive trend of reducing the number of non-performing loans in the structure of loan portfolios continued. Since the beginning of 2024, the total amount of Ukrainians' debt on microloans has increased 1.7 times: from UAH 9.3 billion to UAH 16.02 billion.