Abstract
The article discusses issues of managing problem loans in the countries of the Eurasian Economic Union. The main goal of the article is to solve problems for realizing the positive effects of easing the conditions of bank lending, identifying barriers and constraints taking into account the current policy to free the banking sector from unscrupulous participants. Therefore, the relevance of the topic determines that the problems raised by the authors in the article require a comprehensive study and comprehensive analysis preparing a scientific justification.Based on the identified goal, the authors analyzed approaches to determining problem assets in the banking system, the dynamics of indicators for the development of the banking sector, the share of problem loans in the banking system of the countries of the Eurasian Economic Union, a consolidated report on the profit and loss of commercial banks, the problems of unsuccessful and problem loans - NPL. Based on the study, conclusions are drawn and recommendations are given. The solution to these problems involves the prevention of banking risks, assessing the adequacy of the formation of provisions for possible losses on loans and the compliance of the business models used by credit organizations with their capabilities.
Highlights
In the process of carrying out their activities, commercial banks are exposed to a whole range of banking risks
Of all banking risks, credit risk is the most significant, since most of the financial losses and bankruptcies of banks are due to non-return by borrowers of loans and the bank's illconceived risk policy (Fakhry et al, 2018; Tvaronavičienė et al, 2018; Ashraf et al, 2019; Rahman et al, 2019; Caplinska, Tvaronavičienė, 2020, Siddique et al, 2020)
At present, the most effective and common methods for managing problem debt are the independent work of the bank to return the problem debt or selling loan portfolios to collection agencies
Summary
In the process of carrying out their activities, commercial banks are exposed to a whole range of banking risks. Groups and subgroups of banking risks are interconnected and interdependent. At present, the most effective and common methods for managing problem debt are the independent work of the bank to return the problem debt or selling loan portfolios to collection agencies. Most banks use several methods: in the early stages they work independently with problem debts, and in the later stages they transfer it to collection companies or sell them to third parties. It should be noted that subject to the availability of small amounts of debt on loans (when the costs of finding a borrower exceed the amount of the debt itself) they are written off at the expense of the bank’s reserves
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