Strategy and tactics of banks management in the prevention and elimination negative growth trends of problem loans

Abstract

The article is devoted to the importance and role of managers in general, to avoidance of possible losses from the formation of bad loans held by banks. Careful and prudent approach to the management of banks lending to customers is the key to stable operation of the bank in the financial and economic crisis. The current system of bank management in Ukraine is still at a fairly low level. Studies showed signs of many shortcomings in the credit departments of banks and lack of qualified staff capable effectively and efficiently assess future risks and apply preventive measures to prevent them. There are important examples of international experience in the management of problem loans, the practical effectiveness is confirmed by the results of time and management of foreign banks in the global capital market. When dealing with problem loans there is important the right choice of strategy and tactics of management in banking practice. Banks' work on these issues is long-term, as the banks' activities been made to ensure a sufficient level of liquidity and solvency. From choosing the right strategy of crisis management depends on the stability of the banking system as a whole.