THE INFLUENCE OF THE CREDIT RISKS ON THE BANKING SYSTEM OF UKRAINE IN CONDITIONS OF TRANSFORMATION PROCESSES
Abstract
Credit activity of banks of Ukraine is characterized by a high degree of risk compared to active operations of the Bank. In recent years Ukraine has seen a negative dynamics of growth of credit risk, thus increasing the likelihood of akrediteerimine companies and default of issuers of securities. Banking depends on the chosen risk management strategy. The purpose of the risk management process is to limit or minimize, as fully to avoid risk is impossible. The purpose of this article is to determine the influence of the credit risks on the banking system of Ukraine under conditions of transformational processes and identify ways to reduce credit risk by minimizing their negative effects on the activities of banks and the banking system as a whole. In the article the features of origin of credit risks, a detailed analysis of the notion "credit risk" from the point of view of Ukrainian and foreign scientists and legal acts. An outline of the types of credit risks and their causes. Given the total number of operating banks in Ukraine, analyses the condition of their assets, identified problem loans and their causes. It conducts analysis of dynamics of norms of the credit risk of the banking system of Ukraine and describes the components of the credit portfolio of the described features of non-performing loans, the estimation of the volume of bad loans and reserves for credit operations, given the rating indicators of the viability of banks and the criteria of selection ranking. Identified banks with the highest and lowest percentage of bad loans and the methods of minimization of credit risks, taking into account international experience. Describes the scoring system and the features of its functioning, the advantages and disadvantages of scoring. In conclusion, the article proposes to apply to minimize credit risks: the creation of a reserve, insurance, adherence to NBU standards, the types of collateral, the method of diversification, Lanshan and implementation of scoring systems that simplify the work of the banking system and reduce the negative effects of credit risks.
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