EVALUATION OF THE CREDIT PORTFOLIO MANAGEMENT MECHANISM OF COMMERCIAL BANKS IN UKRAINE IN MODERN CONDITIONS

Abstract

The article analyzes the essence and the mechanism of credit portfolio of commercial banks in Ukraine. In modern conditions of national economy development a great part play commercial banks, which act as the main link of a banking system and cooperate with business entities, individuals and government, providing them with a wide range of  banking services. This makes commercial banks of  Ukraine as an important element of the organization and functioning of the market economy.

Today the problem arises in the growth of bad debts in the bank's loan portfolio, which depends on the economic and political situation in the state. The inefficient management of loan portfolio and the increase in problem loans leads to increase in risks of credit operations, and this means the occurrence of damages and losses of the invested resources.Therefore, the mechanism of management of credit portfolio of the bank needs significant improvements and new research.

In the research process was carried out economic and statistical analysis of the modern state of credit activity of commercial banks of Ukraine. Also carried out a comprehensive assessment of bank lending to commercial banks of Ukraine as a whole and of individual banking institutions. Special attention is paid to the process of managing bad debts of the commercial bank of Ukraine and to determine the level of problem loans.Timely detection of the level of bad debts allows the bank to make a quick decision regarding management.