Research of methods of minimization risk of credit operations JSC "UKRSIBBANK"
Students Name: Pelyno Pavlo Petrovych
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: The relevance of the investigated problem is also confirmed by the fact that a significant number of scientific works are devoted to this issue, in which the main aspects of the nature of bank credit risks, their classification, approaches to management and evaluation are highlighted with varying degrees of completeness [1-3]. In order to minimize the negative effects of credit risks, banks regulate them. Regulation of credit risks is a rather complex process through which a banking institution identifies possible risks, conducts their assessment, monitors and controls its risk positions, and also takes into account the interrelationships between different types of risks. [2-4]. The object of research of the master’s qualification thesis is the credit activity of JSC "UKRSIBBANK" Methods of minimizing the riskiness of the bank’s credit operations are defined as the subject of the study. The following research methods were used in the work: analysis and synthesis, comparison and systematization, method of summarizing research results, graphic-analytical method, methods of comprehensive assessment and economic-mathematical modeling using correlation-regression analysis. The resource base for writing the work was: regulatory and legal acts of Ukraine, monographs, periodical and reference literature, in particular textbooks, study guides, electronic resources and annual reports of JSC "UKRSIBBANK". The purpose of the master’s qualification thesis is to develop proposals for researching methods of minimizing the riskiness of credit operations of JSC "UKRSIBBANK". As a result of the conducted research, the following proposals for improving the work of JSC "UKRSIBBANK" were defined: 1. Improvement of the methods of regulating the level of credit risks in "UKRSIBBANK" (organizational-management, methodological, legislative-normative, restrictive, control, informational, etc.). 2. Effectiveness of control of "UKRSIBBANK" through the application of structured credit risk management (strategic management (management of the banking institution); general risk management; integrated support functions; effective management; effective control; quality of personnel; quality of information). 3. Solving the problem of credit authorization (individual, collective and collegial authorization). 4. Application of diversification as one of the methods of minimizing UKRSIBBANK’s credit risk. 5. Use of methods for assessing the economic effect of lending. 6. Application of credit risk assessment models (expert analysis of the borrower, credit scoring In the first section of the master’s qualification work, the main aspects of minimizing the riskiness of the bank’s credit operations are systematized, the main indicators of the assessment of the financial condition of JSC "UKRSIBBANK" are analyzed. In the second section (research-prognostic part) using the results of SWOT analysis and economic-mathematical modeling of the effectiveness of credit portfolio management, the value of the credit portfolio for the following periods is predicted. Credit risks carry the greatest danger for commercial banks in the context of ensuring and preserving their financial stability, therefore, the introduction of new, more effective methods of assessment, management, and, therefore, the prevention of credit risks should become a priority direction of the development of the banking system of Ukraine. In addition, it is necessary to continue work on minimizing credit risk both at the level of commercial banks and at the legislative level. In particular, further research is needed on the application of complex credit risk management systems, which are a vital element of commercial bank management. Therefore, based on the analysis, in our opinion, the main tools for minimizing risks from the active and passive operations of UKRSIBBANK should be: risk distribution, external insurance, strengthening of requirements for credit security, limiting and rationing of loans, creation of reserves, method of transfer pricing according to agreed repayment terms, diversification of loan portfolios. Keywords: bank, loan portfolio, methods of credit risk minimization. References: 1. Bondarchuk M.K., Alieksieiev I.V., Chervinska O.V., Mizjuk I., Repetskiy B., Mizjuk K. STRATEGIC FINANCIAL SUSTAINABILITY MANAGEMENT COMMERCIAL BANK. German International Journal of Modern Science №16, 2021. P. 13-16. ISSN (Print) 2701-8369 ISSN (Online) 2701-8377. 2. Bondarchuk M.K., Yushchyk Yu.V. Strategic directions of management of bank assets and liabilities // International scientific journal "Internauka". Series: "Economic Sciences". - 2022. - No. 7 (63). https://doi.org/10.25313/2520-2294-2022-7-8162 3.Kots O. Essence of bank financial stability and methods of its evaluation: theoretical aspects. International scientific journal "Internauka". Series: "Economic Sciences". No 9 (29) (2019), pp. 56-60. DOI: 10.25313 / 2520-2294-2019-9-5200 4.Paranchuk S.V., Vivchar O.Y., Bondarchuk M.K, Motoria K.V. Modeling of the process of managing the financial stability of a commercial bank. International scientific journal "Internauka". Series: "Economic Sciences".No 2 (2021). DOI: https://doi.org/10.25313/2520-2294-2021-2