Some aspects of public legal regulation of relations in the field of management of distressed bank assets

This article provides a detailed analysis of the public law regulation of the process of managing non-performing assets, which pose a serious threat to the stability and efficiency of the Ukrainian banking system. Non-performing assets arising from borrower defaults have a serious negative impact on the financial condition of banks. In particular, they distort the asset structure, deteriorate the quality of loan portfolios, reduce liquidity and capital ratios, and directly threaten the stability of the banking system and the economy as a whole. This paper discusses various ways to address NPLs. Internal methods include loan restructuring, which reduces the financial burden on borrowers and allows banks to receive partial repayments, and bank recapitalization, which increases equity to strengthen the financial base. External instruments include the sale of non-performing assets to third parties, such as specialized firms or investors, which allows banks to reduce risks and secure the management resources necessary for their core business. One of the important tools mentioned in this article is the creation of resolution banks specializing in the sale of non-performing assets. Such a bank would help to solve the problem of low-quality assets and allow general banking institutions to focus on maintaining stable operations. It also emphasizes the importance of realistic market valuation of non-performing assets to make sound business decisions. This can reduce potential financial losses and improve the overall efficiency of asset management. The study also discusses the need to improve the legal and regulatory framework for managing non-performing assets. The author emphasizes that without adequate legal regulation it is impossible to ensure effective state control and stability of the banking system. The author analyzes foreign experience of stabilizing the banking system during the financial crisis. The author focuses on the creation of “bad” banks - specialized institutions for managing distressed assets. This experience has already been successfully implemented in a number of countries and can become an effective tool for the recovery of the Ukrainian banking system. Thus, the article concludes that a comprehensive approach to the resolution of distressed assets using both internal and external instruments, improved legal regulation and the application of international experience can make a significant contribution to the stabilization of the Ukrainian banking system, restoration of its efficiency and public confidence in it.