IDENTIFICATION AND ASSESSMENT OF CREDIT RISK OF COMMERCIAL BANKS

The essence and types of credit risks of commercial banks are described in the article.
The main factors of credit risk by types of credit risks are presented. Particular attention is
paid to individual and portfolio credit risk. The types of active operations on which determine
the credit risk are defined.
The dynamics of credit risk norms of the Ukrainian banking system over the last ten
years has been analysed. In the most acute phases of both financial crises that occurred during
the analysed period, the values of credit risk norms were within the recommended limits. After
analysing the actual values of the credit risk norms of the Ukrainian banking system from
2008, we conclude that by 2014 all the indicators did not exceed the limit values.
The content of the new rules for assessing the size of credit risk and asset categorization
is described. Using the new methodology of the National Bank of Ukraine the credit risk
assessment of the Ukrainian banking system was carried out.
Studies have shown that in 2017 the part of non-performing loans is more than half of
loans of Ukrainian banks. The largest credit risk is assumed by state banks.
The level of dollarization of loans and deposits of banks is increased as a result of the
revaluation of balances against the background of a decline in the rate of the national
currency. The main factors of inhibition of commercial banks credit activity are determined.
The recommendations for state authorities and banks are presented in the end of the
article. The measures were proposed to improve the credit activity and quality of the bank’s
loan portfolio.