Securitization and credit derivates as one of the powerful instruments in credit risk management of banking institutions

Abstract

Introduction. Improvement of mechanisms of the bank crediting and its permanent  development remains  one of  the basic ways for  Ukraine to exit from the crisis state. Recent reduction  by the banks of the activity in the field of crediting, as a result of world economic crisis and internal political crisis, has rocked the economy of our state and notedly influenced the indexes of credit portfolio of the Ukrainian banks,  dynamics of value and the structure of which leaves much to be desired.

It has been determined that bank lending carries out the most essential influence on the dynamics of GDP, volumes of the realized commodities and services, cost-of-living-index, currency national exchange rate, and others. In comparison with the influence, that other subjects of financial mediation carry out, the bank lending substantially prevails after all aspects.

Purpose.The aim of this article is the improvement of the methodical providing of financial mediation in Ukraine, that has stipulated the development of mechanisms of the bank lending.

Method (methodology).The tasks are solved by means of the methods of 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. Use of securitization and credit derivatives for crediting is effective enough in modern bank terms. So a general percent after the placement of pool credits equals to 27,7%%, and securitization has brought income in amount of 36%% per year, with reduction of deficit of money risks to the in the consequence of origin of defaulted debt. In a prospect securitization can become one of the most powerful instruments in the credit risk management of bank institutions. It not only allows to raise funds for bank development, but also substantially improves its norms, financial firmness, clears balance.