DIVERSIFICATION OF THE CREDIT PORTFOLIO BY SECTIONS OF THE ECONOMY AS AN INSTRUMENT FOR IMPROVING ITS QUALITY

Abstract

The article analyzes the general credit portfolio of the banking system in terms of sections and sectors of the economy in terms of the concentration of lending by the banking sector, as well as the unification of the resources involved in terms of individual banks by economic entities. The largest banks with inactive assets in various sectors of the economy were determined, and the distribution of problem debt of sectors of the economy by banks participating in the system was analyzed. In addition, the largest loaned sections are studied in dynamics from the beginning of 2022 to the end of 2023, in order to identify the presence of problems with lending before the start of full-scale armed aggression and during. The analysis also highlights sectors that have suffered in their activities due to military actions and how this has affected their ability to service their financial obligations, primarily bank loans. In addition, the banking sector's dependence on the influence of the affected industries and the possibility of countering them in order to preserve the quality of its credit portfolio are determined. Therefore, the main objective of research was the determination of the dependence of banks on the functioning of various sections of the economy, as well as the impact on them through lending in times of crisis, to determine the optimal distribution of the bank's loan portfolio between sectors of the economy, for the possibility of counteracting the influence of negative factors. The research methods that allowed for obtaining key results consisted of primary scientific tools, such as systematic and comparative analysis, as well as synergistic meta-analysis. The practical significance of the study is aimed at creating the prerequisites for the formation of the basis of diversification of the bank's credit portfolio in terms of segments of the economy in order to improve its quality in the real environment and further in regulatory documents. The scientific novelty lies in highlighting the key economic entities in the model of their mutual influence and searching for ways to reduce such influence to safeguard each participant. In addition, the research can be considered an offshoot of a separate direction of the general issue of the research of the quality of the loan portfolio, which will allow the scientific community to more thoroughly develop tools for the support and development of bank lending. The main conclusions present recommendations for improving the quality of the credit portfolio of banks, as well as directions for further discussion and the search for new solutions for the investigated problems.