Bìznes Inform (Jan 2019)
Management of Credit Activity of Banking Institutions: Essence, Practice, Directions of Improvement
Abstract
Financial provision of structural transformations and economic growth on an innovative basis require improvement of the system of management of the credit activity of banks. The article allocates the signs of crisis phenomena in the banking sector, especially those related to the imperfection of the credit policies of banks. The essence of the concept of «credit activity of bank» is researched, its components in terms of a management system are defined. The meaning, stages of formation and practical approaches to the development and implementation of the main provisions of credit policy of domestic banks are covered. Modern tasks, functions and standards of credit activity, as well as the principles of crediting, which define the philosophy of banking operations are described. The practice of organization of credit activity by the leading banking institutions is analyzed in accordance with its stages, directions, as well as quantitative and qualitative indicators. It is determined that the priority direction of credit activity is the credit risk management on the basis of analysis and monitoring of credit projects, evaluation of creditworthiness of each borrower and defining of credit rating. Measures of improvement as to the credit activity management are proposed due to strengthening of communication, information, organizational, analytical and control functions of the credit policy management of banking institutions.
