Analysis of the Credit Policy of the Banking Sector of Ukraine

Abstract

The article is devoted to issues of the banking system of Ukraine. In modern conditions regarding the functioning and development of banking in the country, the creation of the credit policy of Ukraine occupies an important place. If the bank's credit policy is effective, then the banking risk is reduced and the bank's profit increases, even in crisis conditions of economic development. To assess credit policy, such categories as: credit portfolio, amount of non-performing loans and compliance with NBU regulations were analyzed. The dynamics of the entire amount of loans issued was studied, as well as the structure of the credit portfolio of the banking sector of Ukraine by type of borrower during 2018-2022 was analyzed. The causes of credit risk were analyzed, this stage is important, because it helps to identify ways to overcome threats to a specific institution or in general system, and also minimizes the likelihood of risks. In the course of the research, the issue of non-performing loans was considered, this is an integral category of the bank lending process. A low-quality loan portfolio is characterized by a high proportion of non- performing loans, which is negative and requires immediate reduction. Control of their value allows to prevent serious problems of the bank's financial condition, contributes to improving the stability of both a specific institution and the banking system in general. In addition, the amount of reserves for outstanding liabilities was analyzed, the amount of reserved funds characterizes the credit risk management process. When implementing credit activities, it is important to comply with the economic standards of the National Bank of Ukraine, which provide an opportunity to analyze the accepted credit risk from a different perspective. That is why the dynamics of these indicators during 2018-2022 were considered, where special attention was paid to the group of credit risk indicators.