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{"id":11853,"date":"2019-07-12T12:00:46","date_gmt":"2019-07-12T09:00:46","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=11853"},"modified":"2019-07-15T13:50:56","modified_gmt":"2019-07-15T10:50:56","slug":"control-and-methods-of-minimizing","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/control-and-methods-of-minimizing\/","title":{"rendered":"Bodnar E., Tishechkina K., Ivanenko A., Tarasenko V., Control and Methods of Minimizing Credit Risk of the Bank"},"content":{"rendered":"

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JEL<\/strong> Classification:<\/strong> Q 20; Q 42; Q 48.<\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-03<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text]<\/p>\n

Bodnar Elena<\/strong>, Assistant Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0002-0152-4290<\/a>
\ne-mail<\/strong>: bodnarolena1606@gmail.com<\/a><\/p>\n

Tishechkina Kateryna<\/strong>, Candidate of Philology, Associate Professor of the Foreign Languages Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0003-1814-0813<\/a>
\ne-mail<\/strong>: tishechkinakv@mnau.edu.ua<\/a><\/p>\n

Ivanenko Anna<\/strong>, Applicant for Higher Education of Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

Tarasenko Vitalii<\/strong>, Applicant for Higher Education of Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/p>\n

Control and Methods of Minimizing Credit Risk of the Bank<\/h2>\n

 <\/p>\n

Introduction<\/strong>. The article analyzes the management of credit risk, namely, the content of “credit risk” and “credit risk management” is specified. It also outlines the reasons for the emergence of credit risk.<\/p>\n

Purpose<\/strong>. The aim is to deepen the theoretical foundations, to substantiate methodological approaches and to develop practical recommendations for improving the management and minimization of credit risk in Ukrainian banks.<\/p>\n

Results<\/strong>. The reasons for the emergence of credit risk are presented. The functions of credit risk management entities that summarize the content and essence of the credit risk profile are summarized. The necessity of application of antisipatitative approach for carrying out control and minimization of bank credit risk, the concept of which is to prevent significant deviations of the actual level of credit risk from the established norms based on early detection of threats and development of forward reactions to negative changes is substantiated.<\/p>\n

Conclusions<\/strong>. The bank’s credit risk is quantified by the non-compliance with the expectations of the numerical, spatial and temporal parameters of cash flows that the counterparty would have to send to the bank in accordance with the financial commitments, and it arises from the effect of internal and external controlled and uncontrolled factors that result in potential loss of capital and revenues. The minimization of credit risk should be understood as reducing the probability of its occurrence and the amount of possible losses. To minimize credit risk, instruments that have an impact on risk are applied and allow to distribute, localize, compensate or transfer the credit risk to the bank.<\/p>\n

Keywords<\/strong>: credit risk; bank risk; methods of minimization of credit risk; default; antiseptic; diversification; limiting; accumulation of reserves; distribution of risk.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Azarenkova, G. M. & Belenkova, O. O. (2011). Rating estimation as a method of determination of bank lenders’ solvency.<\/em> Kyiv: University of Banking of the National Bank of Ukraine,1 (10), 219-223 [in Ukr.].<\/li>\n
  2. Baranovsky, O. I. (2009). Financial crises: preconditions, consequences and ways of prevention. Monograph. K.: KNTEU<\/em> [in Ukr.].<\/li>\n
  3. Dzhulay, I. A. On the assessment of risks and mechanisms for their reduction in commercial banks. Kirovohrad: Kirovohrad National Technical University. Sir Economy, 12(1), 370. Retrieved from: http:\/\/www.kntu.kr.ua\/doc\/zbir_12.pdf#page=224 [in Ukr.].<\/li>\n
  4. Larionova, K. L. & Garashchuk, O. M. (2009). Theoretical principles of research of the concept and essence of credit risks of banking activity, 4 (16), 74-85.<\/li>\n
  5. Shevchenk, R. I. (2012). Lending and control: a teaching manual. Ministry of Education and Science of Ukraine. KNEU, 183.<\/li>\n
  6. Stefan, L. B. (2015). Problems of Credit Risk Management in Commercial Banks of Ukraine. Effective economy,<\/em> 3. Retrieved from: http:\/\/www.economy.nayka.com.ua\/?op=1&z = 3904 [in Ukr.].<\/li>\n
  7. Sirenko, N., Baryshevskaya, I., Poltorak, A. & Shyshpanova, N. (2018). State and tendencies of intergovernmental regulation in Ukraine in conditions of fiscal decentralization. Financial and credit activity: problems of theory and practice, <\/em>2(25), 157-164. https:\/\/doi.org\/10.18371\/fcaptp.v2i25.136489.<\/li>\n
  8. Poltorak, A. S. & Timoshenko, Yu. S. (2015). Effective management of financial risks in the system of economic security of Ukraine. Ahrosvit<\/em>, 1, 34-39.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 22 May 2019<\/p>\n

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    Bodnar E., Tishechkina K., Ivanenko A., Tarasenko V. (2019). Control and Methods of Minimizing Credit Risk of the Bank. Modern Economics<\/em>, 15(2019), 21-26. DOI: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-03.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text] JEL Classification: Q 20; Q 42; Q 48. DOI: https:\/\/doi.org\/10.31521\/modecon.V15(2019)-03 [\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text] Bodnar Elena, Assistant Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine ORCID ID: 0000-0002-0152-4290 e-mail: bodnarolena1606@gmail.com Tishechkina Kateryna, Candidate of Philology, Associate Professor of the Foreign Languages Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine ORCID ID:
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