Conclusions
Financial instability, in conditions of which is the banking system of Ukraine has led to a decline in bank lending market. The economic crisis in Ukraine causes some banks minimize lending programs. This is due to the fact that banks cannot compensate for their own costs of lending at the expense of revenues.
The main obstacles to the development of leading Ukrainian banks belong to the crisis condition of economics, a significant amount of bad loans, reducing public confidence in the banking system, the instability of the legislative base and others.
In these difficult conditions to maintain the economic security of Ukraine's banking sector consider it necessary to carry out activities such as:
• Avoid administrative decisions related to greater risk. For the realization of this measure is appropriate to the process of decomposition and aggregation of credit risk, which refers to the use of a greater degree of value judgments. Moreover the closer the relationship between the probability of default and any factor, the lower the “tree of decomposition”. Possible levels of decomposition and aggregation for the banking retail loan portfolio are the mortgages, credit cards, other retail loans to borrowers, their location, terms of loans, floating or fixed rate of interest on the loan, internal rating of borrowers. Possible decomposition and aggregation levels for the corporate banking loan portfolio are their locations, industry sector, the term of the loans, floating or fixed rate of interest on the loan, internal rating of borrowers. The first level of aggregation should be carried out on the rating of the borrower. The actual value of the risk, or VAR (value-at-risk) in our opinion should be assessed for each loan that gets each individual borrower, although it may be a low level. Should use correlation coefficients over the last few years as it moves up the “tree”. At the highest levels, where the correlation becomes weaker and less reliable, we consider it necessary to make a strategic decision about whether to consider the correlation separately or suggest the existence of a perfect positive correlation.
