IMPROVEMENT OF CREDIT METHODOLOGY BY COMMERCIAL BANKS

This monograph is devoted to the issues of improving the methodology of lending by commercial banks based on modern requirements. The work provides a comparative analysis of the current regulations and international standards (in particular risk-oriented approaches) in the national banking system and proposes a unified methodological framework for credit policy underwriting process and portfolio management. The authors have developed practical recommendations on the cash flow approach to assessing creditworthiness customer scoring collateral management taking into account risk premiums in pricing a system of limits and the implementation of diversification. The monograph separately covers the criteria for measuring credit risks the expected loss (ECL) model the stress testing procedure rapid testing and monitoring mechanisms in digital products as well as integration with KYC/AML requirements. Regulatory and legal analysis statistical and econometric modeling case studies and expert surveys were used as research methods.