Shapoval O. Risk management of banking consumer lending

This dissertation has investigated theoretical foundations and developed scientific and methodological approaches for formation of the risk management system of banking consumer lending. The definition of “consumer credit”, which takes into account the purpose of the loan and the creditworthiness of the borrower, has been proposed in the thesis which helped to expand the classification of consumer loans. The definition of the essence of the concept “credit risk” of consumer credit has been improved, and the reasons for the necessity of taking it into account both at the level of individual loans and loan portfolio have been given, which allows to realize the customer-oriented approach in the course of risk management of banking consumer lending. In this thesis, the definition of the nature and content of the concept “banking consumer lending risk management system” has been improved, and is now proposed to be defined as the complex of organizational and methodical approaches and automated tools which are used in the process of identification, measuring, regulation, control and monitoring of the risks of consumer lending; as to its main purpose, it has been identified as the assurance of predictability of risks and extent of loss. The scientific and methodological approaches have been introduced for the use of securitized consumer loans in the practice of domestic banks under a traditional securitization scheme; the main directions of legislative regulation of debt financing processes in Ukraine have been identified; in the thesis, there have been developed the mechanisms of credit risks transfer in the case of using multiple currencies of credit and bonds; the methodological approaches for the calculation of securitized bonds’ coupon rate have been presented. This thesis proved the methodological approaches, based on the integration of consumer lending risk management system into a single system of risk management, for improvement of regulatory and supervisory functions of the NBU under the risk management process; and provided the recommendations on institutional dimensions' development of risk management of the banking consumer lending.