Formation of the mechanism for credit asessment of borrowers in conditions of economic instability
The article investigates the state of the credit portfolio of banks in the conditions of instability of the environment and the development of the credit rating of the borrower as a mechanism to prevent the direction of growth of bad debts. The research of the state and dynamics loan portfolio h...
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| Format: | Article |
| Language: | English |
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Zhytomyr State Technological University
2016-06-01
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| Series: | Vìsnik Žitomirsʹkogo Deržavnogo Tehnologìčnogo Unìversitetu: Ekonomìčnì Nauki |
| Subjects: | |
| Online Access: | http://ven.ztu.edu.ua/article/view/72510 |
| _version_ | 1811259782512771072 |
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| author | N.G. Vygovska V.G. Vygovskyy G.Simeonova |
| author_facet | N.G. Vygovska V.G. Vygovskyy G.Simeonova |
| author_sort | N.G. Vygovska |
| collection | DOAJ |
| description | The article investigates the state of the credit portfolio of banks in the conditions of instability of the
environment and the development of the credit rating of the borrower as a mechanism to prevent the direction of
growth of bad debts. The research of the state and dynamics loan portfolio has revealed its sharp deterioration in
recent years due to the instability of the external macro environment. The need to reduce the volume of bad debts
requires the formation of an adequate mechanism for the borrower's credit rating. Under the mechanism defined
in the article the subject-object interaction and providing subsystems have aimed at making management
decisions about credit and credit determination capabilities of the enterprise. The authors propose the
composition of such a mechanism from the position of a system approach with the subject-object allocation and
providing subsystems. As a part of providing credit subsystems the article has allocated a methodological,
methodical, information, personnel and organizational support. The article has formed the basic methodological
principles of credit rating, namely a comprehensive assessment; the accuracy of the assessment; the
progressiveness of the assessment; an objective assessment; professionalism; reality evaluation. Using the
proposed credit assessment the mechanism in practice will enhance the effectiveness of the credit relationship
between the bank and the borrower.
Keywords: credit portfolio; mechanism; creditworthiness assessment; economic instability. |
| first_indexed | 2024-04-12T18:36:44Z |
| format | Article |
| id | doaj.art-7e1b20ad0f5443a2b8c8cae76f38f212 |
| institution | Directory Open Access Journal |
| issn | 1728-4236 1728-4236 |
| language | English |
| last_indexed | 2024-04-12T18:36:44Z |
| publishDate | 2016-06-01 |
| publisher | Zhytomyr State Technological University |
| record_format | Article |
| series | Vìsnik Žitomirsʹkogo Deržavnogo Tehnologìčnogo Unìversitetu: Ekonomìčnì Nauki |
| spelling | doaj.art-7e1b20ad0f5443a2b8c8cae76f38f2122022-12-22T03:20:54ZengZhytomyr State Technological UniversityVìsnik Žitomirsʹkogo Deržavnogo Tehnologìčnogo Unìversitetu: Ekonomìčnì Nauki1728-42361728-42362016-06-01276117129Formation of the mechanism for credit asessment of borrowers in conditions of economic instabilityN.G. VygovskaV.G. VygovskyyG.SimeonovaThe article investigates the state of the credit portfolio of banks in the conditions of instability of the environment and the development of the credit rating of the borrower as a mechanism to prevent the direction of growth of bad debts. The research of the state and dynamics loan portfolio has revealed its sharp deterioration in recent years due to the instability of the external macro environment. The need to reduce the volume of bad debts requires the formation of an adequate mechanism for the borrower's credit rating. Under the mechanism defined in the article the subject-object interaction and providing subsystems have aimed at making management decisions about credit and credit determination capabilities of the enterprise. The authors propose the composition of such a mechanism from the position of a system approach with the subject-object allocation and providing subsystems. As a part of providing credit subsystems the article has allocated a methodological, methodical, information, personnel and organizational support. The article has formed the basic methodological principles of credit rating, namely a comprehensive assessment; the accuracy of the assessment; the progressiveness of the assessment; an objective assessment; professionalism; reality evaluation. Using the proposed credit assessment the mechanism in practice will enhance the effectiveness of the credit relationship between the bank and the borrower. Keywords: credit portfolio; mechanism; creditworthiness assessment; economic instability.http://ven.ztu.edu.ua/article/view/72510credit portfoliomechanismcreditworthiness assessmenteconomic instability |
| spellingShingle | N.G. Vygovska V.G. Vygovskyy G.Simeonova Formation of the mechanism for credit asessment of borrowers in conditions of economic instability Vìsnik Žitomirsʹkogo Deržavnogo Tehnologìčnogo Unìversitetu: Ekonomìčnì Nauki credit portfolio mechanism creditworthiness assessment economic instability |
| title | Formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| title_full | Formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| title_fullStr | Formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| title_full_unstemmed | Formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| title_short | Formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| title_sort | formation of the mechanism for credit asessment of borrowers in conditions of economic instability |
| topic | credit portfolio mechanism creditworthiness assessment economic instability |
| url | http://ven.ztu.edu.ua/article/view/72510 |
| work_keys_str_mv | AT ngvygovska formationofthemechanismforcreditasessmentofborrowersinconditionsofeconomicinstability AT vgvygovskyy formationofthemechanismforcreditasessmentofborrowersinconditionsofeconomicinstability AT gsimeonova formationofthemechanismforcreditasessmentofborrowersinconditionsofeconomicinstability |