LOAN PORTFOLIO OF UKRAINIAN BANKS DURING THE WAR: EFFECTIVE FORMATION AND MINIMIZATION OF RISKS

Abstract

The article is devoted to the topical issues of forming, diagnosing and minimizing the risks of the credit portfolio of banking institutions during the war in Ukraine. The theoretical foundations of the formation of the credit portfolio are studied, its main types are determined, and the classification of the main groups and types of credit risk factors in banks is presented. Stable functioning of the banking system is a guarantee of stable functioning of the national economy. This strategy depends precisely on how effective the developed bank lending policy is both on the part of the NBU and at the level of an individual banking institution. Therefore, the most important direction for banks is the search for effective mechanisms for improving their own lending system, forming a loan portfolio and minimizing credit risk. The article examines and presents the largest loan portfolios of Ukrainian banks both by their clients (individuals and legal entities) and as a whole for the 2022. It was determined that the overall credit portfolios of banks decreased in 2023 with the introduction of the NBU's tight monetary policy and high credit risks due to the war in Ukraine. The article provides a detailed diagnosis of the formation of the loan portfolio of AKB «Industrialbank», its general structure and types of activity. It was revealed that in the loan portfolio of AKB "Industrialbank" for 2020-2022 the largest specific weight of 96.1%, 95.7% and 95.7% belongs to lending to corporate clients. The main indicator that affects the solvency of both a banking institution and the country's banking system as a whole is the share of NPLs. The presented dynamics of the NPLs indicator in the bank's loan portfolio during the research period indicate that the bank increased the amount of non-performing loans, which negatively affected its stability and solvency. Although in general, almost all banks carried out more active work on the settlement of issues with problem non-performing loans, but still a large share of them still remained in loan portfolios. It was the war that led to a wave of defaults by both legal and individual customers. Therefore, in order to minimize credit risk, it is proposed to become a participant and partner of the new Fund for partial guarantee of loans in agriculture, which began its activity in 2024.