Investigation of factors external credit environment and prediction of their development

The most important external factors include: general state of the economy, inflation, growth in gross domestic product (GDP) budget deficit, monetary policy of NBU, income levels, ability to consume banking services, the availability of social benefits and etc., the level of competition, prices for banking products and services; politicized society, social tensions, the demand for bank services its customers. 4. Formation of strategic objectives and monetary policy studies such as credit policy. Type of credit policy of the bank describes the basic approaches to its implementation from the perspective ratio between the level of profitability and risk the credit of the bank. There are three principal types of bank credit policy - conservative, moderate and aggressive. Conservative type of credit the bank's policy aims to minimize credit risk. This minimization is seen as a priority objective in carrying out its lending activities. Focusing on this type of monetary policy, the bank is not trying to make high profits due to a significant expansion of the volume of lending activity. Mechanism for implementing this policy is: hard criteria for assessing the creditworthiness of borrowers, minimizing the term of the loan and their volumes, stringent conditions of the loan and increase its value, the use of stringent procedures elimination of bad debts. Moderate type of monetary policy characterized by the typical conditions of its implementation in accordance with generally accepted banking practices and focuses on the average level of credit risk. Aggressive type of credit policy priority of the credit activity aims to maximize profits by increasing the volume of lending activities, not considering the high level of credit risk that accompanies these operations. Category: Management Operations Commercial Bank | Tags: forecast