Strategic ways of minimizing banks’ bad loan debts

DOI

10.2991/smtesm-19.2019.8How to use a DOI?

Keywords

problem loan, adversely classified assets, loans in the early warning stage, loans with identified signs of problem, overdue loans, discount rate

Abstract

The strategic directions for minimization banks’ bad loan debts were studied. The essence of the problem loan as a type of bank assets was found out and the authors’ interpretation of this definition was suggested. Substantiated was the authors’ adjusted approach to the classification of problem loans, which refines specifics and scope of their emergence. The volume of problem loans within Ukraine’s banking system in general and at JSC Oshchadbank in particular was analyzed. It is suggested that banks can improve the way they manage bad loan debts in the post-crisis Ukraine by developing a strategy for minimizing bad loan debts and introducing the LVPC coverage ratio for potential bank claims at JSC Oshchadbank instead of the LTV coverage ratio used in most banks.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nelia Volkova
AU  - Valeriia Volkova
AU  - Liana Ptashchenko
AU  - Alina Glushko
PY  - 2019/09
DA  - 2019/09
TI  - Strategic ways of minimizing banks’ bad loan debts
BT  - Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)
PB  - Atlantis Press
SP  - 33
EP  - 37
SN  - 2352-5428
UR  - https://doi.org/10.2991/smtesm-19.2019.8
DO  - 10.2991/smtesm-19.2019.8
ID  - Volkova2019/09
ER  -