STUDY OF THE KEY ELEMENTS OF THE PROCESS OF FORMATION AND REALISATION OF THE BANK'S BORROWERS' CREDITWORTHINESS

Анотація

The article considers issues related to the analysis of approaches to assessing the creditworthiness of bank borrowers. The article analyses various views of scientists and allocates main components of the concept of "creditworthiness", which comprehensively reveal the content of the concept and its main characteristics, both in relation to individuals and legal entities. The article offers a structure of assessment of creditworthiness of clients on the basis of the world and domestic practice, which includes two components: criteria of creditworthiness of a client and methods of assessment of creditworthiness of a client. Based on a comparative analysis of the main 10 foreign models for assessing the creditworthiness of borrowers, it is concluded that the indicators of "borrower's reputation" and "ability to repay the loan" are present in a larger number of models. The article considers foreign and domestic methods of assessing the borrower's creditworthiness and concludes that they have both common and distinctive features, but there is no single ideal method among them that would be suitable for a larger number of banking institutions. It is shown that there is a need to select instruments that will reflect the risks of potential losses. By determining the optimal system for assessing the borrower's creditworthiness, the bank reduces the risks of loan default and, in the future, bankruptcy of the institution. It is determined that the methods used in the practice of domestic banks generally assess financial indicators, but there is a gap in the use of qualitative characteristics in assessing the borrower's activities that do not have a quantitative expression, which are considered in detail in foreign methods for assessing the creditworthiness of a supplier. To make such an assessment, banking institutions need to pay attention to the analysis of the external environment, which will help in determining credit risks. It is the combination of qualitative and quantitative indicators that will help banks conduct a comprehensive multifactorial analysis and minimise credit risk. Therefore, based on the recommendations of the National Bank of Ukraine, each banking institution should choose an acceptable methodology or system for analysing and assessing creditworthiness in order to ensure the correctness of this assessment. It is concluded that there is currently no single methodology for assessing the creditworthiness of borrowers.

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