Insurance and hedging of bank lending risks

Abstract

Introduction. In the current studies of financial and economic security under the decentralized national economy the key element in capital redistribution is bank lending. It is an integral part of the development of economic relations. Bank lending provides the keeping up of the balance between the existing in the society and temporally free money and the amount of resources.

It is bank lending that provides the most significant influence on the dynamics of GDP, volumes of commodities and services, cost-of-living-indices, national currency exchange rate, etc. In comparison to the affect that other financial intermediaries make bank lending substantially prevails in all aspects.

Reduction of the share of problem lending in the bank loan portfolio is the immediate task of bank risk management. Forecasting of the absolute value of this index is just the first step on the way to the minimization of its share in the general structure of bank loan portfolios.

Objective. The aim is to eliminate the problems of the effective redistribution of financial resources in the economy and work out the approaches that will balance the mechanisms of bank lending in Ukraine.

Method (methodology). The tasks are solved by means of the methods of the estimation and analysis of risks and financing efficiency, the estimation of financial and economic performance, model of optimal structure of credit portfolio, statistical methods.

Results. The offered mechanism of the borrowers’ liability insurance is feasible and effective especially in the post-crisis period and in the becoming the economy of the country. Its usage is perspective and requires further research in terms of the estimation of risks and profitability.