RESTRUCTURING OF PROBLEM LOANS OF BANKS IN TIMES OF CRISIS

Abstract

Rybak O.M., Puskov D.O. RESTRUCTURING OF PROBLEM LOANS OF BANKS IN TIMES OF CRISIS

Purpose. The aim of the article is the analysis of the current state of problem debts of Ukrainian banks, research of methods of restructuring problem loans and search for ways to optimize it in a crisis.

Methodology of research. The following methods are used to achieve this goal: dialectical ‒ when clarifying the economic meaning of concepts and terms; analysis, synthesis, sampling, graphic ‒ in the study of the state and structure of problem loans; induction and deduction ‒ to determine the impact of negative factors on the domestic development of lending by commercial banks; comparison ‒ in the study of methods of restructuring problem loans against the background of crisis phenomena and processes.

Findings. Such mechanism as restructuring is considered in the article for minimizing the level of problem loans. It is determined that the implementation of such procedure should take place on a systematic basis, according to uniform rules and apply to all banking institutions.

Taking into account the world experience of problem debt restructuring, the need to improve the legal and regulatory framework for problem debt restructuring in terms of providing tax benefits and the introduction of a balanced procedure for restructuring loans at the state level, providing government guarantees to clients in difficulty with the financial crisis. The necessity of creating an effective mechanism for selling problem assets of commercial banks is substantiated, namely the creation of appropriate asset management companies, companies for repurchase of non-performing loans, etc.

It is proposed to create a separate unit at the level of the banking institution, whose work will focus on choosing the best methods and scenarios for restructuring problem loans and monitoring this process, revealed the need to use automated methods to identify bad debts in banks, which will reduce the number of existing errors, eliminate the human factor and improve the quality of the credit process.

Originality. The necessity of restructuring application by commercial banks of Ukraine against the background of crisis phenomena and processes is substantiated, the influence of restructuring methods on the borrower and the bank is systematized and the ways of improvement of restructuring in the process of working with problem loans are offered.

Practical value. The proposed measures will provide an opportunity to achieve positive dynamics in working with problem loans both at the level of banks and at the state level; will allow to react quickly to unpredictable endogenous and exogenous destructive factors and to minimize risks of their influence on the basic financial and economic indicators of the deposit-taking corporation.

Key words: restructuring, credit, commercial bank, borrower, problem loans, crisis phenomena.