scholarly journals FEATURES OF FORMATION OF CREDIT POLICY AND CREDIT PORTFOLIO OF COMMERCIAL BANK IN MODERN CONDITIONS

2021 ◽  
Author(s):  
Natalia Ostrovska
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Cash Flows ◽  
Bank Loan ◽  
Economic Conditions ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Loan Market ◽  
Modern Economic ◽  
Banking Institution

The level of development of production, social infrastructure and the degree of development of society as a whole largely depends on how developed the banking sector of the state is. An important role in fulfilling the tasks is assigned to commercial banks, which can provide credit resources to enterprises and organizations, as well as citizens. In addition, an efficient and stable banking sector is a key factor in the growth of the national economy. The purpose of the article is to determine the features of the formation of credit policy and loan portfolio of a commercial bank in modern economic conditions. The article identifies the features of the formation of credit policy and loan portfolio of a commercial bank in modern economic conditions. It is generalized that the main specific features of credit relations are: their emergence at the stage of redistribution of final income; formation on the basis of return and with the payment of interest; impact on the structure and volume of cash flows and features of the bank loan market. It is proved that the study of the bank loan market involves the analysis of the structure of the loan portfolio, its most important areas are the assessment of the structure of the loan portfolio by type of customers, terms of lending, as well as by type of currency and more. It is determined that the credit policy of a banking institution is one of the main elements of banking policy, which is a strategy and tactics of the bank to attract temporarily free funds in the economy and direct them to credit operations. In the process of credit risk management, an important element is the ability of the bank's management to choose correctly: the sphere of management in which it is advisable to concentrate the bank's lending activities at a given time; "Its client", based on its creditworthiness and other factors that are of paramount importance for the bank in deciding on the possibility of granting a loan, etc. The credit policy of the banking institution determines the priorities in the development and improvement of lending activities, development of the credit process and increase its efficiency and ensures the stability, profitability and liquidity of the bank.

scholarly journals Problems of qualitative evaluation of commercial bank loan

2020 ◽  
pp. 15-19
Author(s):  
Nadiia SOLOVEI ◽  
Ihor SKRYPNYCHENKO
Keyword(s):  
Commercial Bank ◽  
Financial Stability ◽  
Risk Index ◽  
Maximum Yield ◽  
Bank Loan ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Banking Institutions ◽  
Credit Portfolio

The article defines the nature of the loan portfolio, as well as the problems in the assessment and analysis of the commercial bank loan portfolio. In order to improve the existing credit portfolio of the bank, the dynamics, categories of the borrower ratio and the quality of the loan portfolio are analyzed, based on the obtained data, significant factors influencing the formation and management of the analyzed bank's loan portfolio are determined. Generation of a loan portfolio is usually subject to issuance of loans with maximum yield on the same terms. The profitability of a loan transaction is determined by the amount of the interest rate on the specific loan, the duration of the loan and the accepted system of calculation of interest payments. Practice shows that the success of managing the efficiency of banking investments and the formation of an effective structure of the bank's credit portfolio depend to a large extent on the skills of managing the banking institutions that carry out optimal formation, management of the credit portfolio and good management to ensure the efficiency of activities with the least possible risk and maximize results. The quality of the loan portfolio is analyzed using the coefficient method based on the calculation and analysis of trends in the development of relevant quantitative indicators. In the economic literature, the indicators that we can use to assess the quality of a bank's loan portfolio are divided into two groups: the credit portfolio risk index and the profitability of the credit business. The results of the analysis allow us to draw conclusions about the level of risk and profitability of the bank's loan portfolio and to develop measures to improve the effectiveness of the bank's credit policy. Based on the analysis of the structure and quality of the loan portfolio, the Bank's management is given an opinion to consider in order to determine the priority instructions for the placement of credit resources, limit the concentration and diversification of the loan portfolio and set limits on the execution of individual loans. It is concluded that prudent credit policy with an increase in rates, constant monitoring of the components of the credit portfolio, urgent management measures of banking institutions in the field of risk management should lead to an increase in lending and improve the quality of the portfolio management system. It is noted that the implementation of mainly quality measures to improve the structure of the loan portfolio will inevitably affect the financial stability of the bank and business efficiency, as well as increase its competitiveness and operational security.

scholarly journals PROBLEMS OF ENSURING THE FINANCIAL SUSTAINABILITY OF THE BANKING SYSTEM

2021 ◽  
Author(s):  
Olena Tarasova
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
Financial Sustainability ◽  
Loan Portfolio ◽  
Bank Deposits ◽  
High Inflation ◽  
The Stability ◽  
Banking Institution

The article explores the problems of ensuring the financial sustainability of the banking sector, which plays a very important role in the functioning of the financial system of the state. The role of the stability of the banking system in ensuring conditions of economic growth is justified. It is noted that it is the financial stability of each banking institution that is a prerequisite for the stable functioning of the entire banking system. It is emphasized that since the financial stability of the banking system is influenced by a large number of internal and external factors, for the effective functioning of the banking system of the country must be ready for any challenges to the macro and microenvironment. The main problems of the banking system in modern conditions should be considered the reduction of deposits of the population, deterioration of the quality of the loan portfolio, significant devaluation of the hryvnia, high inflation rates, loss-making of a significant number of banking institutions. It was concluded that the banking system of Ukraine feels a significant dependence on the funds of depositors - individuals, and therefore on factors that affect their behavior in the financial market. Trends of formation of deposit base of commercial banks of Ukraine and imbalances in the sphere of attraction of banking resources were analyzed. The growth of bank deposits of the population is slow, negative changes in their structure are observed. The share of deposits of individuals after the 2014 crisis has become significantly more volatile and risky in terms of financial stability. The increase in lending is complicated by the presence of large portfolios of problem loans, as a result of which there are a number of tasks to increase the efficiency of the loan portfolio, which should ensure a compromise of profitability, liquidity and credit risk acceptable to the bank. The priorities of monetary policy and the main tasks are formulated, the solution of which will allow to intensify lending to the real sector of the economy. Theoretical and practical recommendations have been developed to improve bank lending, increase the profitability of the banking system and capitalize Ukrainian banks.

scholarly journals Banks in the Context of “New Normality” and the Need to Restructure Business Processes

2018 ◽  
Vol 11 (3) ◽  
pp. 38-45
Author(s):  
A. E. Ushanov
Keyword(s):  
Life Cycle ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Bank Loan ◽  
Loan Portfolio ◽  
Application Procedure ◽  
Official Data ◽  
Financial Result

The reduction by the Bank of Russia of the key rate as a tool for quantitative monetary easing leads to stagnation in the banking sector profitability. The purpose of the research was to disclose the importance of the mainstreaming factors of the banking profits formation. It is shown that the reasons that led to the financial result in 2017 had an unstable, temporary nature. It is revealed that the effect of the bank margin reduction under the “new normality” conditions can be overcome only by increased lending. In the situation when the real quality of a bank loan portfolio does not correspond to official data the introduction of risk-oriented business models into practice is essential for the growth of corporate lending. A progressive model of the loan life cycle is described. It is concluded that banks should use the model more extensively in providing loans to corporate borrowers in order to reduce risks, accelerate the loan application procedure and improve the profitability and competitiveness of credit institutions.

MANAGEMENT OF CASH FLOWS OF THE ORGANIZATION ON THE EXAMPLE OF LLC «BUREZHILPROMSTROY»

2021 ◽  
Author(s):  
O.A. Litinskaya ◽  
◽  
E.A. Samoilova ◽  
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Economic Conditions ◽  
Flow Management ◽  
Cash Flow Management ◽  
Modern Economic ◽  
The Given

The article deals with the essence of cash flows in modern economic conditions. The method of their analysis is given, as well as the analysis of cash flows according to the given method on the materials of the operating enterprise LLC «Bureyazhilpromstroy». As a result of the analysis, weaknesses in cash flow management were identified and recommendations for their elimination were proposed.

APPLICATION OF CASH RECYCLING TECHNOLOGY TO OPTIMIZE THE CREDIT POLICY OF A COMMERCIAL BANK FOR IMPROVING WELFARE OF THE RURAL POPULATION

2020 ◽  
Vol 5 (86) ◽  
pp. 115-122
Author(s):  
N.V. Alentieva ◽  
◽  
◽  
Keyword(s):  
Commercial Bank ◽  
Rural Population ◽  
Banking Sector ◽  
Financial Institution ◽  
The United States ◽  
Functional Requirements ◽  
Credit Policy ◽  
The World ◽  
Recycling Technology ◽  
In Transit

The article reveals and analyzes the advantages of ATMs with the function of cash recycling to improve welfare of the rural population. The bank's credit policy is based on the basis for the entire lending process, which determines its objective parameters and features. Its main goal is to maximize profits while minimizing potential risks. In the world market, the use of recycling technology in the banking sector remains in demand. Its use ensures constant availability of banknotes in the ATM, and this allows ATM to work for a long time without stopping for cash-in-transit services, which is a significant advantage for users. At present, the technology of cash recycling is a promising direction in the field of self-service banking and has a huge potential for its development. Due to the increase in the number of such devices,banking services are becoming available to potential consumers. The credit policy of a commercial bank in this direction provides an opportunity to attract a larger number of clients, at relatively low operating costs. ATMs with a cash recycling function are widely used in European countries, Japan, South Korea, and the United States. In Russia, such first ATMs appeared about 15 years ago, but due to their high cost, not every financial institution can use them in their work. The demand for ATMs with cash recycling is growing steadily around the world. Now, when it has become clear that ATMs with recycling function can reduce the costs of cash-in-transit serices, many banks when buying terminals include recycling in the list of basic functional requirements for new equipment. These technologies will allow financial organizations to save time on equipment maintenance and optimize costs.

scholarly journals CREDIT: ESSENCE, PRINCIPLES AND FUNCTIONS

2021 ◽  
Author(s):  
Natalia Ostrovska
Keyword(s):  
Social Reproduction ◽  
Commercial Banks ◽  
Banking Sector ◽  
Cash Flows ◽  
The State ◽  
Economic Life ◽  
Bank Loan ◽  
Financial Resources ◽  
Social Infrastructure ◽  
Definition Of

In the modern economic system, with the development of market relations, the leading links in the economy began to be commercial banks, on whose activities depends the effective functioning of the state economy as a whole. The level of development of production, social infrastructure and the degree of development of society as a whole largely depends on how developed the banking sector of the state is. An important role in fulfilling the tasks is assigned to commercial banks, which can provide credit resources to enterprises and organizations, as well as citizens. Among the many categories of economics, credit can be considered among the most important, due to the unique role played by this economic phenomenon in the economic life not only of individual organizations, states, but society as a whole. The purpose of the article is to clarify the conceptual and categorical apparatus of the definition of "credit", its functions and principles of lending. The article examines the theoretical basis for determining the essence of the definition of "credit", its origin, functions and principles of lending, which highlighted the fact that credit is the most common form of raising funds in the banking market. It is determined that a bank loan is a form of credit in which money is lent by banks. Commercial banks licensed by the NBU are the main link in the credit system, they simultaneously act as a buyer and seller of temporarily available funds in society. In the system of economic relations, credit acts as an independent economic category. Thanks to credit, businesses have the opportunity to meet their economic needs to ensure the continuity of the processes of social reproduction, overcoming the limited financial resources. Credit relations allow businesses to increase their financial resources and expand production. The credit relationship between a banking institution and an entity is based on an analysis of the borrower’s financial condition. The main specific features of credit relations are: their emergence at the stage of redistribution of final income; formation on the basis of return and with the payment of interest; impact on the structure and volume of cash flows and features of the bank loan market.

scholarly journals ANALYSIS AND EVALUATION OF LOAN ACTIVITIES OF BANKS OF UKRAINE

2021 ◽  
Author(s):  
Svitlana Kushnyr ◽  
Sofiia Fomenko
Keyword(s):  
Value Orientations ◽  
Credit Policy ◽  
Successful Operation ◽  
Loan Portfolio ◽  
Internal Factors ◽  
Policy Objective ◽  
Analysis And Evaluation ◽  
Number Of Factors ◽  
Efficiency And Effectiveness ◽  
Banking Institution

The economic potential of the country is significantly increased due to the presence of a developed credit market, constitutes a significant share of the total market, as well as the peculiarities of functioning and certain advantages over other segments. The scale, activity and efficiency of lending activities are critical to the success of every banking institution as a classic representative of financial intermediation. The successful operation of the bank requires constant work to improve its own lending activities, optimize the loan portfolio, introduce innovative mechanisms and lending instruments, expand the range of loan services and applications. Of great importance in the context of credit management is the development and implementation of the bank's own credit policy, taking into account potential opportunities, a variety of risks and factors (internal, external) that affect efficiency and effectiveness. However, due to the large number of external and internal factors environment, they need a classification that would allow a more thorough investigation and analyze their multifaceted impact on the formation of credit policy. That's it determines the relevance of the study of objective and subjective factors and their structuring by levels of the world economy. That is a set of factors that affect the lending activities of the bank formed by its external and internal environments, can be divided objective and subjective, and their analysis and consideration is a necessary prerequisite for success development and implementation of credit policy. Objective factors include those circumstances or conditions that exist recognized regardless of human will. Such factors include factors external environment and organization of the organization of the bank (a number of factors internal environment). Subjective factors include a set of factors individually personal influence of people (staff, customers, employees, etc.), their interests, beliefs, uses, value orientations that directly or indirectly affect formation of the bank's credit policy.

scholarly journals THE ESSENCE OF THE CREDIT POLICY OF BANKS WITH FOREIGN CAPITAL AND THE PECULIARITIES OF ITS IMPLEMENTATION

2019 ◽  
Vol 42 (4) ◽  
pp. 51-56
Author(s):  
T. S. KARPOVA
Keyword(s):  
Commercial Bank ◽  
Foreign Capital ◽  
Point Of View ◽  
Development Plan ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Strategic Development ◽  
Control Functions ◽  
Number Of Factors

  In our country the question of developing a credit policy remains important and paramount, so far there is no single answer to it. The article proposes the point of view of scientists on the concept of "credit policy", which is a system of principles established by the central bank and the state in the credit sphere with the purpose of regulating the credit process in banks. Credit policy should form the content of the loan portfolio and establish standards for making credit decisions, it is analyzed its direction. The principles of balanced credit policy, as well as its main stages, are systematized. The credit policy of a commercial bank must contain rules for the implementation of specific goals, including standards and instructions that represent the methodological support for its implementation. It is proved, that credit policy of a commercial bank is a combination of its credit strategy and credit tactics. The credit policy features are prescribed, which should be reflected in the bank's internal documents. Determination and improvement of credit policy means to formulate and consolidate in the necessary internal documents the position of the management of the bank. The goals of the bank in conducting a balanced credit policy, the functions of the credit policy, macro- and microfactors affecting it are indicated. Goals and standards of lending are determined in accordance with the strategic development plan of the bank and can be formulated both in the long-term development plan and in the budget of the bank for the current year. The importance of the principles of rational lending and the composition of lending standards are emphasized. The development of a credit policy of any bank depends on a number of factors, among which macrofactors and microprocessors can be identified. Functions of credit policy are: commercial functions, control functions, stimulating function, specific functions. The credit policy of banks when working with legal entities is aimed at developing long-term relationships with borrowers, in article the criteria for selecting clients for cooperation are determined.

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