№ 7/2017

Fìnansi Ukr. 2017 (7): 76–90

MARKET OF FINANCIAL SERVICES

BRUS Svitlana , BUBLYK Ievgen ¹

¹SІ “Institute for Economics and Forecasting of NAS of Ukraine”
OrcID ID : https://orcid.org/0000-0002-6080-9341

decrease in the volume of problem loans in ukraine under limited tools

The article is devoted to the actual problem of decreasing the share of non-performing loans in the banking system of Ukraine. The large share of problem loans on the balance sheets of Ukrainian banks makes it impossible to restore lending to the economy and become a disturbing factor for the banking sector in case of financial instability. The analysis showed that despite “cleaning” the market and reducing the impact of crisis factors, in 2017 there is still a tendency to increase the share of problem assets in the banking sector of Ukraine. At the same time, the volume of accrued reserves for bad debts in banks is quite often equal to the volume of performing loan portfolios. However, this problem is paid insufficient attention in scientific publications, policy documents of government bodies and regulators. There are no reliable official data on the amount and structure of the problem assets. The article analyzes the foreign practice of managing problem loans, especially in EU countries where after the financial and economic crisis of 2008 the issue of reducing the share of such loans in the banking sector was particularly serious. This problem in the EU has not yet found its solution, unlike the US, where due to existing practices and regulatory standards the toxic assets growth was broken down quickly. Bases on the analysis, the author concludes that addressing the excess problem asset accumulation in the Ukrainian banking sector requires an integrated approach, aimed at the phased implementation of measures in the following key areas: simplification of procedures for writing off and selling non-performing loans, realization of collateral usage securitization mechanism; improvement of normative and methodological support to determine the actual volume of bad debts and monitor them, using necessary tools for asset detoxification.

Keywords:banking system, credit market, bad assets, non-performing loans, problem loans management, securitization.

JEL: E58, G12, G18, G21.

BRUS S. . decrease in the volume of problem loans in ukraine under limited tools / S. . BRUS, I. Bublyk // Фінанси України. - 2017. - № 7. - C. 76-90.

Article original in Ukrainian (pp. 76 - 90)

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