JEL Classification: Е50; G21
Mankuta A., scientific degree applicant higher education accounting and Finance faculty, Mykolayiv national agrarian University, Nikolaev, Ukraine
Lysenko S., scientific degree applicant higher education accounting and Finance faculty, Mykolayiv national agrarian University, Nikolaev, Ukraine
THEORETICAL AND PRACTICAL ASPECTS OF ORGANIZATION ТНЕ CREDIT POLICY IN BANK
Introduction. Despite the depth of research in the field of organization of credit policy, existing developments and recommendations do not, in our opinion, give a holistic view of the nature of credit policy, the impact of its results on the choice of ways to implement the bank’s lending strategy.
Purpose. The purpose of the paper is to study the theoretical aspects of the formation of banking institution’s credit policy.
Results. The article reveals theoretical and practical aspects of the organization of credit policy in the bank, its general characteristic of goals and functions. The external and internal factors influencing the bank’s credit policy are investigated. The main purpose of the bank’s credit policy is substantiated. It is analyzed that realization of credit policy in practice is formalized in the corresponding internal banking standards (provisions) of crediting and credit instructions. It is proved that lending to borrowers is carried out by commercial banks subject to compliance with banking standards. It is determined that credit policy should specify: general criteria for assessing loan applications; obligatory conditions for granting a loan; terms of lending; credit information; interconnection of credit and other operations in this client’s bank; loan portfolio structure; the cost of a loan. A separate section in the credit policy can identify “desired loans” and “unwanted loans”.
It is concluded that banking institutions are developing a credit policy, primarily because it allows regulating, managing and organizing credit relations between the bank and its clients as to the reverse flow of cash value.
Conclusions. It is determined that during development of credit policy of a banking institution it is necessary to take into account the level of development of the economy of the country, the banking system and a specific bank.
Keywords: bank, banking, banking activities, credit, credit policy, credit activity, credit rick.
- Vovchak, O. D. (2008), Kredyt i bankivs’ka sprava [Credit and Banking to the Right], Znannia, Kiev, Ukraine.
- Gritsenko, O. (1996), Hroshi ta hroshovo-kredytna polityka [Money and Monetary Policy], Fundamentals, Kiev, Ukraine.
- Gutsal, I. (2001), Bankivs’ke kredytuvannya sub”yektiv rynku v transformatsiyniy ekonomitsi Ukrayiny (pytannya, teoriyi, metodyky, praktyky) [Bank lending of market participants in the transformational economy of Ukraine (issues, theory, methods, practices)], OJSC “BIBLOS”, Lviv, Ukraine.
- Dyakonova, I. (2007), Udoskonalennya kredytnykh vidnosyn – spozhyvche kredytuvannya [Improvement of credit relations – consumer lending], University Book, Sumy, Ukraine.
- Morsman, E. M. (2003) Kredytnyy departament banku : orhanizatsiya efektyvnoyi roboty [Credit department of the bank: organisatsiya efektivnoi roboti], Alpina Pablisher, Ukraine.
- Stelmakh, V. S., Shapovalov, A. V. and Krotyuk, V. L. (2002), Kredytna systema Ukrayiny i bankivs’ki tekhnolohiyi [Credit system of Ukraine and banking technologies], LBI NBU, Lviv,
- Lyubar, O. O. (2010), “Bank’s Credit Policy: Types and Models”, Bulletin of the University of Banking of the National Bank of Ukraine, vol. 3 (9), pp. 183-185.
- Prasolova, S. (2004), “Features of the formation of the credit policy of Ukrainian banks for long-term investment”, News of the National Bank of Ukraine, vol.11.