Issue: №11/2, 2019
Doi: https://doi.org/10.37634/efp.2019.11(2).2
Crisis phenomena has led to an increase in problem debt in banks' loan portfolios, a decline in lending and a decrease in the number of banking institutions in Ukraine. The issue of debt reduction remains an urgent problem for Ukrainian banks, as it affects the bank's liquidity and can lead to insolvency or even bankruptcy of a financial institution, so banks have to make significant reserves for credit risks, which directly affects the investment capacity of banking institutions. The article was written to investigate the nature of the concept of problem credit, analyze the dynamics of problem loans of Ukrainian banks, investigate the reasons for increasing the absolute amount of arrears, suggest directions for improving the management of problem loans of banks in Ukraine. The purpose of the article is to analyze the dynamics of the share of problematic debt in the banking system of Ukraine in times of crisis, to study the current state and causes of problem loans. The positions of scientists on the interpretation of the essence of the concept of "problem credit" are analyzed, the author's approach to the definition of this concept is proposed. The dynamics of problematic debt in the banking system of Ukraine over the last ten years and in crisis periods is analyzed. The reasons for increasing the absolute amount of arrears are investigated Taking into account our results, namely the analysis of the dynamics of problem loans, we emphasize the expediency of our recommendations for overcoming bad debts. The proposed measures will have a positive effect on minimizing credit risks for banks, will help reduce the amount of bad debt and automatically ensure the growth of the country's economy.
Keywords : credit, problem credit, non-performing loans, problem debts, borrower
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