Shvets O. Control and methods of minimization of the credit risk in Banks

The thesis is devoted to deepening of theoretical provisions, developing of methodological approaches and practical recommendations for improving of the control and methods of minimization of the credit risk in banks. The concepts and categories of the credit risk management are described, namely clarified the meaning of the term "Credit risk" which is versatile in terms of consideration of the probable nature of risk activities; "Control of the credit risk of the bank", which is considered to be a special kind of management, structured by phases and aimed on prevention, detection and eradication of the negative trends in the changes in the credit risk positions of the bank, which is achieved through monitoring and regulation of such deviations; control function has been supplemented, classification of the methods of minimization of the credit risk has been extended, based on the rationale of the division of their impact on the level of the credit risk (credit risk minimization methods of the direct and indirect action); based on the stage of use (methods used before the acquisition of the instrument-bearer of the credit risk, methods used after the issuance of credit and during its maintenance). A quantitative assessment of the level of the credit risk in the banking sector of Ukraine has been conducted, given the methods of minimization of the credit risk in the different groups of banks and the results of their impact on the level of bad debts. A complex scientific and methodological approach to the analysis of the quality of the control of the credit risk in banks has been suggested. Recommendations are developed for improving control and minimization of the credit risk of the bank through the use of the anticipation, this concept is built upon the prevention of the significant deviations of actual credit risk from the established standards based on the early detection of threats and development of preliminary actions to negative changes. Anticipation approach to control and minimization of the credit risk in bank is conducted through the identification and evaluation of basic weak signals within the internal and external environment of the bank, which may lead to changes in its risk positions. Methodological provisions on establishment of the analytical support for the control and minimization of the credit risk in banks has been proposed, based on the research of the system for collecting, processing, storage and analysis of the information about borrowers and the financial model of their interaction.