Credit risks as the object of control and regulation by the National Bank of Ukraine

Abstract

The article aims to define the main methods that can be used by the National Bank of Ukraine for controlling and regulating of the credit operation by the banks. One of the main targets of controlling and regulating of such type of operations by the National Bank is the protection of investors’ rights and interests, since credit activities are the allocation of the investors’ money. By the analysing the laws and regulations, the main requirements and ratios, which are stipulated by the National Bank and are to be adhered by all banks, have been unified. Both adhering of the required rations and complying with financial analysis procedure are crucial for bank’s stability and formation of the high quality of credit loans portfolio. The attention, which the National Bank pays to the risk management problems, especially credit risk management problems, testifies the actuality of this topic. Considering the number of banks, which are under liquidation procedure because of the bad quality of credit’s loans portfolio and lack of the loss loan reserves, credit transactions and all the risks which are associated should be controlled and regulated by the National Bank of Ukraine.