APPROACHES TO ESTIMATING FINANCIAL STABILITY OF THE BANK THROUGH MANAGING CREDIT ACTIVITY

Abstract

Concept of financial stability of bank and economic essence of bank’s credit activity are considered in the article. The indexes of financial stability and indexes of efficiency, profitability, liquidity of bank establishment, and also economic indicators and norms of the banking system are analysed.Crediting activation assists the further increase of economy, development and origin of new entities, creation of workplaces, development infrastructure of country, those are basis of financial stability. In parallel, crediting is one direction of banks’ activity, that provides their profitability.The article is dedicated to the analysis of tendencies and features of credit activity of domestic banks. Efficiency of management of credit activity JSC CB "Privatbank" and JSC "Oschadbank" on the modern stage of economic development are analized. Authors analyse the structure of a loan portfolio JSC CB "Privatbank" and JSC "Oschadbank", efficiency of management of a loan portfolio by correlation of basic management parameters - profitability and risk. The analytical estimation of the credit activity state of JSC CB "Privatbank" and JSC "Oschadbank" and its influence on financial stability of the banking system, and also on return on assets of the indicated bank institutions and optimal strategy of banks’ credit activity.The modern state is analysed and practical recommendations are sunstantiated in relation to the improvement of bank institutions’ credit activity with the aim of providing their financial stability.Conclusions about the necessity of efficiency management crediting of domestic banks’ increase by optimal forming and management of a loan portfolio at a minimum level of risk are drawn.