Evaluating the Processes of Management of Credit Portfolio of JSC CB «PrivatBank»

• Main Authors: Pohorelenko Natalia P., Yurchenko Alla Yu.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-10-01
• Series: Bìznes Inform
• Subjects: credit portfolio; troubled loans; credit portfolio management; credit portfolio management efficiency coefficient
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-10_0-pages-325_332.pdf
• ISSN: 2222-4459; 2311-116X

The article is aimed at studying the status and structure of the credit portfolio of JSC CB «PrivatBank», also evaluating the processes of management of the bank’s credit portfolio through the computation of the coefficient of credit portfolio management efficiency. While analyzing financial indicators, a consideration and a research of the status of bank lending in modern conditions of the national economy of Ukraine were carried out. The reasons for reducing the proportion of the credit portfolio in the GDP structure during the research period are summarized. The fundamental principles of the credit portfolio management of JSC CB «PrivatBank» were analyzed in accordance with the «Regulation on credit policy». As a result of the research, the analysis of the main analytical indicators of credit portfolio management was accomplished, the structure of the credit portfolio and the structure of the bank’s portfolio credit quality during 2016-2019 were determined. On the basis of analytical data, the coefficient of efficiency of management of the bank’s credit portfolio was computed. Actual problems affecting the process of management of the bank’s credit portfolio were considered. The indicators of the efficiency of credit portfolio management of JSC CB «PrivatBank» for 2016-2019 are computed. It is determined that the key challenges for both the researched bank in particular and the banking sector in general remain a high proportion of non-performing loans. Decisive actions on the part of the management of JSC CB «PrivatBank» will help to improve the structure of the credit portfolio and reduce the amount of troubled debts of the bank. Ways to solve problems of improvement and enhancing the quality of credit activity of the bank are prospects for further research.