Volkova Nelia, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

ORCID ID: 0000-0003-3790-3636
e-mail: n.volkova@donnu.edu.ua

Shpuniarska Tetiana, Master of Department of Finance and Banking, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

ORCID ID: 0009-0006-8295-2946
e-mail: shpuniarska.t@donnu.edu.ua

Assessment of the Quality of the Loan Portfolio in the Conditions of Modern Challenges

Abstract. Introduction. The article considers the essence and proposes the author’s interpretation of the concept of “loan portfolio”. The main direction of banking institutions is credit activity, accompanied by significant risk. Lending to the population and business under martial law is more relevant than ever. It is proved that the credit activity of the bank is carried out on the basis of a clearly formed credit policy.

Purpose. The article is aimed at substantiating the results of the analysis of the quality of the loan portfolio of banks and developing conceptual approaches to assessing the quality of the loan portfolio in the conditions of modern challenges.

Results. The state of credit activity of JSC “Oschadbank” in the general bank credit portfolio of the banking system of Ukraine is quite high and has an unstable character. It is noted that over the past three years, as a result of improving the service and offer of loans to the population and business, the size of the loan portfolio has significantly increased, the share of overdue debt in the loan portfolio of Sberbank tends to decrease annually, which is associated with careful selection of categories of borrowers. The structure of the loan portfolio by economic sectors and retail business is analyzed. Estimation of profitability indicators of the loan portfolio of JSC “Oschadbank” is given. The concept of improving the assessment of the quality of the bank’s loan portfolio, which is studied in the conditions of modern challenges to increase its level of profitability, has been proposed.

Conclusions. The main priority in the activity of any bank is to provide loans to the population. Therefore, the data on the provided loans by banks and the place of JSC “Oschadbank” in them, the level of non-performing and overdue loans, the structure of the loan portfolio and indicators of its profitability have been analyzed. The concept of improving the quality of the loan portfolio in the conditions of modern challenges was developed, which includes the goal, tasks, principles of research, as well as means and tools for achieving the goal. The direction of our further research is the choice and implementation of means and tools to improve the quality of assessment of the bank’s loan portfolio.

Keywords: loan portfolio; loans; quality of loan portfolio; indicators of profitability of loan portfolio, current challenges.

References:

1. Andrieieva K. K. Commercial bank loan portfolio analysis. Vinnitsa National Technical University. http://inmad.vntu.edu.ua/portal/static/7831631C-F5E2-4871-82754283C058474A.pdf.
2. Belikova, T., & Pushkina, S. (2020). Methods for analyzing the quality of a bank’s loan portfolio. Finances. Law, №4 (1), 35-40. https://doi.org/10.37634/efp.2020.4(1).8.
3. Zatvornytskyi, K. (2018). Criteria for assessing the quality of the bank᾿s loan portfolio. Financial space, №4 (32), 99-106. http://nbuv.gov.ua/UJRN/Fin_pr_2018_4_13.
4. Zolota, N., & Panukhnyk, O. (2021). Methodology for assessing the quality of the loan portfolio. Innovations in the global exchange sphere and banking, №2, 102-104. https://elartu.tntu.edu.ua/bitstream/lib/34923/2/FMZKPNES_2021_Zolota_N.Methods_for_assessing_the_102-104.pdf.
5. Zaporozhets, S., & Tryhub, Yu. (2022). Quality management of the bank’s loan portfolio during the period of martial law. Financial space, №4 (48), 71-77. https://doi.org/10.18371/fp.4(44).2022.717778.
6. Petrushko, Ya. (2018). Credit activities of the bank and the main stages of its organization. Scientific Bulletin of Uzhgorod National University, №20, 166-170. http://www.visnyk-econom.uzhnu.uz.ua/archive/20_2_2018ua/37.pdf
7. Verbovenk, I. & Zharikova, O. (2022, November 17) Upravlinnia kredytnym portfelem banku. Insurance market of Ukraine: challenges during the period of martial law and prospects for further development [Conference presentation abstract]. Kyiv, Ukraine. 13-16.
8. Lyn C. Thomas, David B. Edelman, Jonathan N. Crook. Credit Scoring and its Applications. SIAM. https://epubs.siam.org/doi/pdf/10.1137/1.9780898718317.fm
9. Vladyka,, & Okhrimenko, V. (2021). Features of the formation of the loan portfolio of a commercial bank. Finance: Theory And Practice: [Conference presentation abstract]. Kyiv, Ukraine. 181-182.
10. Oshchadbank. (2023). https://www.oschadbank.ua/.
11. National Bank of Ukraine.(2023). https://bank.gov.ua/.