Economics and Business Management

Ensuring effective management of the credit portfolio of a commercial bank in the conditions the modern crisis

Olena Zharikova, O. Pashchenko, M. Smalyuh
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Abstract

The purpose of the publication is research on ensuring effective management of the bank's credit portfolio and finding ways to expand bank lending in the leading sectors of the economy. Practical calculations were carried out on the basis of JSC CB «PrivatBank» for the years 2019-2022. It was determined that the bank's credit activity is one of the important sources of attracting funds to the country's economy and ensuring its optimal functioning. To achieve the goal, general scientific methods were used: observation, comparison, abstraction, grouping, statistical methods, observation, methods of analysis and synthesis, induction and deduction. According to the main results of the study, it was proved that: one of the directions of credit portfolio management of JSC CB «PrivatBank» is the stabilization of the portfolio by diversification of risks, which forms a dual approach to its management; financial institutions are obliged to implement new requirements for the development and implementation of non-performing asset management processes, problem asset management strategies, control and reporting on the implementation of the problem asset management strategy; the development of a problem assets management strategy in accordance with the Regulation will contribute to the improvement of the efficiency of the management of the credit portfolio of each banking institution, in particular JSC CB «PrivatBank». The practical significance of the obtained results lies in the most important factor in overcoming the consequences of the financial crisis and resuming economic growth, namely the growth of bank credit investments, which is impossible without proper organization of credit risk management

Keywords

bank; banking system; credit; bank credit portfolio; bank credit portfolio management; bank credit risk

Suggested citation
Zharikova, O., Pashchenko, O., & Smalyuh, M. (2023). Ensuring effective management of the credit portfolio of a commercial bank in the conditions the modern crisis. Economics and Business Management, 14(2), 46-57. https://doi.org/10.31548/economics14(2).2023.046
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