REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE
The article is devoted to the issue of regulating the bank's credit risk in the context of economic instability. The relevance of the study is due to the high level of influence of the volatile environment on the credit risk and the efficiency of the bank's functioning. The article is aim...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2025-06-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
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| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4748 |
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| author | Лариса Гриценко Ірина Кожушко Онур Ерісен Віталій Романчукевич Євген Чернов Петро Тарабановський |
| author_facet | Лариса Гриценко Ірина Кожушко Онур Ерісен Віталій Романчукевич Євген Чернов Петро Тарабановський |
| author_sort | Лариса Гриценко |
| collection | DOAJ |
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The article is devoted to the issue of regulating the bank's credit risk in the context of economic instability. The relevance of the study is due to the high level of influence of the volatile environment on the credit risk and the efficiency of the bank's functioning. The article is aimed at assessing the mechanisms of state regulation of the bank's credit risk in the context of economic instability in Ukraine's case study. The article considers the requirements of Basel III, which regulates this aspect of banking activity at the European level. In the course of the study of Ukraine's experience, a detailed analysis of the adaptation of international standards to the existing conditions of the national banking system was carried out on the basis of the provisions set out in the Resolution of the National Bank of Ukraine No. 351. In order to assess the impact of adapting Basel III requirements the quality of the loan portfolio of five Ukrainian banks and the banking system as a whole are analyzed. The statistical study established the relationship between the level of credit risk, adequacy of provisions and profitability of banking activities. The results of the assessment demonstrated a significant positive impact of the NBU's approaches on the process of maintaining the stability of the banking system in the current socio-political crisis. The scientific novelty of the work lies in a comprehensive assessment of the effectiveness of credit risk regulation of banks in Ukraine in the context of economic instability, including an analysis of the harmonization of international standards with the national conditions, and an empirical study of the impact of adapted requirements on the quality of the loan portfolio. The study identified prospective directions for improving the methodology for assessing and managing credit risk in the context of economic instability.
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| format | Article |
| id | doaj-art-86349e2d68b14c928206d75da9b8cde2 |
| institution | Kabale University |
| issn | 2306-4994 2310-8770 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj-art-86349e2d68b14c928206d75da9b8cde22025-08-20T03:32:19ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702025-06-0136210.55643/fcaptp.3.62.2025.4748REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINEЛариса Гриценко0Ірина Кожушко1Онур Ерісен2Віталій Романчукевич3Євген Чернов4Петро Тарабановський5D.Sc. in Economics, Professor, Technical University of Denmark, Ballerup, Denmark; Head of the Department of Financial Technologies and Entrepreneurship, Sumy State University, Sumy, UkraineТrainee, University of Applied Sciences Baltazar Zapresic, Zapresic, Croatia; Sumy State University, Sumy, UkrainePhD in Accounting and Finance, Assistant Professor, Vice Dean of the Faculty of Business Administration, Marmara University, Istanbul, TurkeyD.Sc. in Economics, Professor of the Department of Banking and Insurance, Vadym Hetman Kyiv National Economic University, Kyiv, UkrainePhD Student of the Department of Financial Technology and Entrepreneurship, Educational and Scientific Institute of Business, Economics and Management, Sumy State University, Sumy, UkrainePhD Student of the Department of Finance, Banking andInsurance, Lutsk National Technical University, Lutsk, Ukraine The article is devoted to the issue of regulating the bank's credit risk in the context of economic instability. The relevance of the study is due to the high level of influence of the volatile environment on the credit risk and the efficiency of the bank's functioning. The article is aimed at assessing the mechanisms of state regulation of the bank's credit risk in the context of economic instability in Ukraine's case study. The article considers the requirements of Basel III, which regulates this aspect of banking activity at the European level. In the course of the study of Ukraine's experience, a detailed analysis of the adaptation of international standards to the existing conditions of the national banking system was carried out on the basis of the provisions set out in the Resolution of the National Bank of Ukraine No. 351. In order to assess the impact of adapting Basel III requirements the quality of the loan portfolio of five Ukrainian banks and the banking system as a whole are analyzed. The statistical study established the relationship between the level of credit risk, adequacy of provisions and profitability of banking activities. The results of the assessment demonstrated a significant positive impact of the NBU's approaches on the process of maintaining the stability of the banking system in the current socio-political crisis. The scientific novelty of the work lies in a comprehensive assessment of the effectiveness of credit risk regulation of banks in Ukraine in the context of economic instability, including an analysis of the harmonization of international standards with the national conditions, and an empirical study of the impact of adapted requirements on the quality of the loan portfolio. The study identified prospective directions for improving the methodology for assessing and managing credit risk in the context of economic instability. https://fkd.net.ua/index.php/fkd/article/view/4748bank credit risktransfer pricing riskcredit risk managementreservescredit risk assessmentmanagement accounting |
| spellingShingle | Лариса Гриценко Ірина Кожушко Онур Ерісен Віталій Романчукевич Євген Чернов Петро Тарабановський REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE Фінансово-кредитна діяльність: проблеми теорії та практики bank credit risk transfer pricing risk credit risk management reserves credit risk assessment management accounting |
| title | REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE |
| title_full | REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE |
| title_fullStr | REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE |
| title_full_unstemmed | REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE |
| title_short | REGULATION OF A BANK’S CREDIT RISK IN THE CONTEXT OF ECONOMIC INSTABILITY: A CASE STUDY OF UKRAINE |
| title_sort | regulation of a bank s credit risk in the context of economic instability a case study of ukraine |
| topic | bank credit risk transfer pricing risk credit risk management reserves credit risk assessment management accounting |
| url | https://fkd.net.ua/index.php/fkd/article/view/4748 |
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