CREDIT RISK OF THE BANK: THE ESSENCE AND CAUSES OF ITS ORIGIN

Abstract

The article is devoted to the study of the essence of the credit risk of a banking institution. The relevance of the topic is emphasized by the fact that the nature of credit risk is very complex and multifaceted. It is with uncertainty or with probable processes that the occurrence of risk is associated, which leads to the difficulty of accurately predicting future events. Emphasis is placed on effective (risk is understood as the possibility of some adverse event) and process (risk is understood as a consequence of an integral process from the action of the factors forming a risk situation to obtaining a result as a result of its existence) approaches to the interpretation of the concept of "risk". The interpretation of the concept of "credit risk" in normative legal acts and scientific works of economists is considered. The main elements of credit risk of a commercial bank are determined: object, cause of occurrence, nature of action, result, functions. The study of scientific literature made it possible to generalize the classification of credit risks of commercial banks according to the following characteristics - depending on the area of occurrence, depending on the nature of coverage, depending on the impact on the credit product, depending on groups of borrowers, depending on the type of credit product of the commercial bank, depending on the possibility of forecasting. The factors that cause the emergence of credit risk are determined. It is noted that credit risk arises in connection with changes in the functioning of commercial banks, insufficient control over credit activity, violation of the borrower's responsibility due to actions beyond his control. Attention is focused on two groups of factors that lead to the emergence of credit risks: internal (microeconomic), i.e. controlled (determined by the specifics of commercial bank activity); external (macroeconomic), i.e. uncontrolled (these risks are objective and not subject to the influence of a commercial bank). Determining the nature of credit risk and the factors that have a direct impact on its occurrence will help commercial banks to effectively control risks, determine acceptable levels of risk and manage them, as well as minimize the impact of such risks on the activities of commercial banks.