DIRECTIONS FOR IMPROVING RISK MANAGEMENT IN LENDING TO INDIVIDUALS

Abstract

The article is concerned with the process of credit risk management in the banking sector. It is noted that this process includes the continuous solution of the tasks of obtaining, processing and submitting reliable targeted information for making management decisions. Increasing competition in the banking services market, constant changes in the socio-economic environment, as well as unforeseen circumstances, such as economic crises or pandemics, pose the task of effective risk management to banks. This article analyses the quality of risk management at JSC Oschadbank. To assess the quality of the risk management system in the bank, the scoring and weighting method and the method of expert assessments were used. The assessment was carried out in terms of organizational and information support of the credit risk management system, interest rate and currency risks, as well as operational and liquidity risks. To conduct the assessment, the categories of the above risks were ranked by the level of significance to determine an integrated assessment of the quality of organizational and information support of the risk management system of JSC «Oschadbank». To achieve this goal, the method of expert assessments was used. As part of the loan portfolio diversification, the effectiveness of such type of lending as commodity express loans in retail chains should be considered. Today, this type of lending is one of the most common forms of consumer lending. Despite the high interest rates that compensate the bank for the increased credit risks, express lending is in great demand among borrowers. Currently, Oschadbank does not use this form of consumer lending due to its inconsistency with the strategy of minimizing credit risk to ensure financial stability. On the example of Oschadbank, the author points out that the task is to maintain and expand the volume of consumer lending and credit cards, taking into account the strategy of minimizing credit risks. In the context of market competition, the importance of developing new banking services is considered.