JEL classification: G21
Introduction. Ukrainian banking institutions are constantly faced with the problem of non-repayment of consumer loans received by individuals. The reasons for this need to be identified, classified and assessed, which is primarily the object of credit risk management of banking institutions. The lack of effective methods for assessing and managing risks in the provision of consumer loans can ultimately lead to significant problems in the efficient operation and financial stability of banks. Despite the existing scientific and practical achievements, the issue of assessment and management of consumer lending risks remains underdeveloped, their implementation in the activities of banking institutions is quite theoretically loaded, which causes problems in real life.
The purpose of the article is to assess the current state of bank consumer lending in Ukraine and develop recommendations for optimizing the management of the loan portfolio of individuals in banking institutions.
Results. An analysis of the current state of lending to individuals in Ukraine by banking institutions has been done. The dynamics of consumer lending was assessed in terms of loans to individuals and businesses, the volume of loans and reserves for active operations. The methodological approach to the calculation of the integrated ratio is proposed to assess the quality of the loan portfolio of individuals, which is based on the qualimetric method, where each class of credit debt is assigned a corresponding rank value. The condition of the loan portfolio of Ukrainian banks was assessed according to the proposed qualimetric ratio. The distribution of commercial banks by the share of the loan portfolio of individuals and the qualimetric ratio is given. The average value of the qualimetric coefficient for the debt of individuals throughout the banking system is calculated and analyzed. It is proved that the use of the proposed qualimetric quality factor of the loan portfolio of individuals allows to conduct a static assessment of its condition within the above ranges, and monitor its dynamics during monitoring. The recommendations for the active use of credit risk management methods in lending to individuals have been developed based on the proposed methodological approach.
Key words: banks, consumer lending, credit risk, risk management, risk assessment.
- 1. Vovchak, O.D., Antoniuk, O.I. (2016). «Consumer lending in Ukraine: current status and development trends in conditions of financial and economic instability». Yevropeiski perspektyvy. no. 2. pp. 148-157.
- Dovhan, Zh.M. (2016). «Credit risk management of banks in the economic crisis». Visnyk Natsionalnoho banku Ukrainy. no. 8. pp. 51-55.
- Dotsenko, I.O. (2018). «Modern tendencies of development of bank consumer credit in Ukraine». Ekonomika ta suspilstvo. no. 14. pp. 792-798.
- Natsionalnyi bank Ukrainy: ofitsiine internet-predstavnytstvo [National Bank of Ukraine: official online representation]. National Bank of Ukraine: Website. Available at: http://www.bank.gov.ua.
- Pro zatverdzhennia Polozhennia pro vyznachennia bankamy Ukrainy rozmiru kredytnoho ryzyku za aktyvnymy bankivskymy operatsiiamy [On the consolidated Regulation on the status of the banks of Ukraine in the world of credit for active banking operations]. (2016). Board of the National Bank of Ukraine, adopted on 2016, Jun 30, 351. Legislation of Ukraine: Website. Available at: https://zakon.rada.gov.ua/laws/show/v0351500-16#Text.
- Stepanenko, S.V., Ampilohova, K.O. (2020). «Modern methods of risk management in banks’ lending to individuals». Sotsialno-ekonomichni problemy suchasnoho periodu Ukrainy. no. 4 (144). pp. 33-41.
- Suhoniaka, M.V. (2013). Formuvannia mekhanizmu antykryzovoho upravlinnia systemnym bankom [Formation of the mechanism of anti-crisis management of the system bank]. Dnipropetrovsk.
- Shapoval, O.A. (2017). Upravlinnia ryzykamy bankivskoho spozhyvchoho kredytuvannia [Risk management of bank consumer lending] (PhD thesis). Kyiv: Kyiv National University of Trade and Economics,
- Shmatko, N.M. (2017). «Methods of quantitative assessment of credit risk of the banking book.». Visnyk Ukrainskoi akademii bankivskoi spravy. 2017. no. 1. pp. 67-71.
The article was received 15.10.2020