ASSESSMENT OF THE BORROWER'S CREDIT CAPACITY OF THE COMMERCIAL BANK: DIRECTIONS FOR IMPROVING THE QUALITY OF INFORMATION AND ANALYTICAL SUPPORT
DOI:
https://doi.org/10.30837/ITSSI.2020.13.106Keywords:
creditworthiness, borrower, logistics model, integrated indicator of the debtor's financial condition, debtor's class, default probability ratioAbstract
The article is devoted to the study of theoretical and methodological bases and the development of practical recommendations for assessing the creditworthiness of a borrower of a commercial bank. The subject of the study is a set of theoretical, methodological and practical aspects to improve the quality of information and analytical support for assessing the creditworthiness of commercial bank borrowers. The purpose of the article is to develop theoretical and methodological provisions and substantiate practical recommendations for assessing the creditworthiness of the borrower. Objectives: to analyze the actual indicators of development of the banking system of Ukraine, including the scale of credit operations of commercial banks; to study and systematize the conceptual apparatus for assessing the creditworthiness of borrowers; on the basis of regulatory legal regulation to establish an algorithm for determining the value of the default factor of the borrower-legal entity; to develop measures to improve methodological approaches to assessing the creditworthiness of commercial bank borrowers. During the research the following methods were used: abstract-logical analysis, theoretical generalization, system and statistical analysis, graphical method. According to the results of the study, the dynamics of assets and loans of domestic banks for the period 2015-2020 was analyzed. and credit operations of domestic banks for the period 2017-2020. Theoretical and methodological approaches to assessing the creditworthiness of borrowers are summarized. Measures have been developed to form a scientifically sound methodological approach to assessing the creditworthiness of commercial bank borrowers. Conclusions: proposed measures to improve the methodological support for assessing the creditworthiness of commercial banks, to improve the quality of credit operations, minimize the likelihood of risks and threats, and thus contribute to the stability of development and a high level of financial and economic security of commercial banks.
References
Vasilchak, S. V., Demus, L. R. (2012), "Assessment of the borrower's creditworthiness as one of the methods of ensuring the economic security of the bank" ["Otsinka kredytospromozhnosti pozychalʹnyka yak odyn iz metodiv zabezpechennya
ekonomichnoyi bezpeky banku"], Scientific Bulletin of NLTU of Ukraine. Collection of scientific and technical works, Vol. 22.1, P. 154–161.
Vovchak, O., Meda, N. (2013), "Modernization of approaches to assessing the creditworthiness of bank borrowers" ["Modernizatsiya pidkhodiv do otsinky kredytospromozhnosti pozychalʹnykiv bankiv"], Bulletin of the NBU, No. 12, P. 11–15.
Gidulyan, A. (2012), "Improving the methodology for assessing the creditworthiness of borrowers" ["Polipshennya metodyky otsinky kredytospromozhnosti pozychalʹnykiv"], Bulletin of the NBU, No. 1, P.50–53.
Davydovych, I. D., Lomachynska, I. A., Mumladze, A. O. (2016), "Improving theoretical approaches to defining the essence of "creditworthiness of the enterprise" ["Udoskonalennya teoretychnykh pidkhodiv do vyznachennya sutnosti "kredytospromozhnistʹ pidpryyemstva"], Bulletin of ONU named after I. I. Mechnykova, Vol. 21, No. 11 (53), P. 83–88.
Kindratska, G. (2019), "Assessing the solvency of Ukrainian enterprises: problematic aspects of standard methods", Economic Journal of the Lesya Ukrainka East European National University, No. 3, P. 133–143.
Kramarenko, I. S., Kozachenko, L. A. (2018), "Methodology for assessing the borrower's creditworthiness: a practical aspect", Economy of Ukraine, No. 5 (670), P. 49–60.
Kuzhelev, M. O., Kovaleva, K. V. (2019), "Theoretical aspects of enterprise creditworthiness management", Economy and state, No. 12, P. 55–60.
Markovic, T. G. (2019), Estimation by commercial banks of creditworthiness of the enterprises-exporters : dis. … Cand. econ. Sciences: 08.00.09 - accounting, analysis and audit (by types of economic activity), Zhytomyr, 260 p.
"Reliability and performance of Ukraine's banking system: growth driver or burden?" ["Nadiynistʹ ta pokaznyky bankivsʹkoyi systemy Ukrayiny: drayver rostu chy tyahar?"], available at : http://icps.com.ua/nadiynist-ta-pokaznyky-bankivskoyi-systemy-ukrayiny-drayver-rostu-chy-tyahar (last accessed: 12.08.2020).
"Official site of the NBU" ["Ofitsiynyy sayt NBU"], available at : https://nbu.gov.ua (last accessed: 12.08.2020).
"Regulations on the determination by banks of Ukraine of the amount of credit risk on active banking
operations: Resolution of the Board of the NBU dated 30.06.2016 No. 351" ["Polozhennya pro vyznachennya
bankamy Ukrayiny rozmiru kredytnoho ryzyku za aktyvnymy bankivsʹkymy operatsiyamy: Postanova Pravlinnya
NBU vid 30.06.2016 No. 351"], available at : https://zakon.rada.gov.ua/laws/show/v0351500-16#Text
(last accessed: 12.08.2020).
"On Amendments to Certain Regulations of the National Bank of Ukraine: Resolution of the Board of the NBU of March 16, 2018 No. 26" ["Pro vnesennya zmin do deyakykh normatyvno-pravovykh aktiv Natsionalʹnoho banku Ukrayiny: Postanova Pravlinnya NBU vid 16.03.2018 No. 26"], available at : https://zakon.rada.gov.ua/laws/show/v0026500-18#Text (last accessed: 12.08.2020).
Saukh, I. V., Vygovsky, V. G. (2019), "Analytical support for assessing the borrower's creditworthiness", Effective science, No. 8.
Svitlychna, V. Yu., Fateeva, G. E. (2011), "Current issues of credit relations in the activities of banking institutions of Ukraine" ["Aktualʹni pytannya orhanizatsiyi kredytnykh vidnosyn v diyalʹnosti bankivsʹkykh ustanov Ukrayiny"], Municipal economy of cities: Nauchn.-tehn. Sat, No. 100, P. 252–262.
Slavyuk, R. A. (2018), "Assessing the borrower's creditworthiness: the experience of Poland", Market infrastructure, Issue 19, P. 497–505.
Drozd, О. М., Dubichinsky, V. V., Dyakov, A. S. et al. (2010), Dictionary-manual of economic terms [Slovnyk-posibnyk ekonomichnykh terminiv] / for ed. T. R. Kiyaka, Kyiv, Vid. House "KM Academia", 264 p.
Sukhanova, A. V., Puhalskaya, N. O., Cherniy, B. S. (2018), "Modern methods of assessing the creditworthiness of the borrower by banking institutions", Economy and society, No. 18, P. 821–826.
Fedorishina, L. I., Tsurkan, A. O. (2018), "Improving methodological approaches to assessing the creditworthiness of a commercial bank borrower", Agrosvit, No. 11, P. 39–42.
Tchaikovsky, J. (2014), "Directions of improvement of a technique of the analysis of creditworthiness of the debtor-legal entity" ["Napryamky vdoskonalennya metodyky analizu kredytospromozhnosti borzhnyka-yurydychnoyi osoby"], Ukrainian science: past, present, future, Vol. 19, Part 1, P. 176–188.
Downloads
How to Cite
Issue
Section
License
Copyright (c) 2020 Olga Ovchelupova
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Our journal abides by the Creative Commons copyright rights and permissions for open access journals.
Authors who publish with this journal agree to the following terms:
Authors hold the copyright without restrictions and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-commercial and non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
Authors are permitted and encouraged to post their published work online (e.g., in institutional repositories or on their website) as it can lead to productive exchanges, as well as earlier and greater citation of published work.
