Credit risk management in the bank

Abstract

The article is devoted to the issues of credit risk management in the banking sector, which remain a key factor in financial stability and sustainability of the banking system. The main attention is paid to the analysis of modern methods of assessing and minimizing credit risks, including the introduction of new digital technologies, improving borrower scoring procedures and the use of big data to predict customer solvency. The article discusses factors influencing the growth of problem loans, such as macroeconomic instability, increasing debt burden and changes in borrower behavior. Particular attention is paid to the role of regulators in credit risk management, including tightening prudential standards, asset quality control and the introduction of stress testing in banking institutions. The importance of loan portfolio diversification as a way to reduce risks is considered, as well as key approaches to debt restructuring to reduce the level of defaults. The article emphasizes the need to integrate innovative technologies, such as artificial intelligence and blockchain, to automate the risk management process. The author emphasizes the importance of an integrated approach that combines analytical tools, regulatory impact and a long-term strategy for interacting with clients aimed at sustainable development of the banking system and minimizing credit losses.