STUDY OF THE CURRENT STATE OF THE CREDIT PORTFOLIO OF UKRAINIAN BANKS AND THE EFFICIENCY OF ITS MANAGEMENT

Abstract

In conditions of intensified competition, banks, expecting a profit, can place their assets in high-risk instruments, which can lead to loss of liquidity and solvency. The responsibility of the bank's management for the strategic goals of the bank's financial development is growing. Under these circumstances, the role of theoretical and practical aspects of the formation of the bank's financial strategy increases. But it should be remembered that the basis of financial stability and strategic development is the formation of an effective credit policy, which can provide a clear strategy. The strategy is a tool for implementing the strategic management of the bank, which is an activity related to defining the goals and objectives of the organization and ensuring the relationship between the organization and the external environment and, in turn, meets its internal capabilities and allows it to remain receptive to external requirements. The significance of the essence of the loan portfolio was investigated, in particular, the concept of "bank loan portfolio" and its role were clarified. The peculiarities of the concepts of "size" and "structure" of the loan portfolio are determined. The article analyzes the dynamics of the loan portfolio of banks and their number as of January 1, 2018-2021, outlines the factors that have a direct impact. In addition, the loan portfolio of one of the largest systemic banks in Ukraine - JSC CB "PrivatBank" was studied and an assessment of its structure and quality was provided. To improve measures to prevent credit risk, the bank should take into account the cost of credit resources in credit risk management. This will determine the time interval and the appropriateness of adjusting interest on loans, crucial for improving the tools of analysis in the process of credit risk management The conclusions present recommendations for the banking sector of Ukraine in order to further improve lending and improve the loan portfolio of Ukrainian banks.