Credit Risks During Economical Crisis: Trends From the Ukraine Banking System

Abstract

The Ukrainian banking system, being typical for Eastern European countries, elucidate the dynamics, the structure, the profitability and the risks of the credit portfolio of a developing country’s banking system in pre-crisis and crisis periods (in this case from 2006 to 2010). Knowledge of these aspects is instrumental in revealing the main trends and problems in managing the credit risk of national banking systems. This article considers the theoretical and practical implications of macroeconomic research devoted to the credit risk of national banking systems that consider development aspects of the banks crediting policy. Approaches to optimize the crediting policy of national banks are recommended based on identification of the priorities of its formation, focused on the stabilization of both certain banks’ activity in the short term and the whole banking system in the long term.