BORROWER'S CREDITABILITY AS A CREDIT RISK FACTOR

Assessment of the creditworthiness of individuals and legal entities remains one of the most important, but at the same time the most complex components of credit risk management. Despite the accumulated experience, the availability of a regulatory framework and a variety of models, there are still a number of difficulties in the Ukrainian banking system that make it difficult to ensure an objective and stable risk assessment. The object of the study is the process of credit risk management in banking institutions. The subject of the study is the methods and criteria for assessing the creditworthiness of individuals and legal entities as a means of minimizing credit risk. The study applied a set of general scientific and special methods. In particular, methods of analysis and synthesis were used to generalize theoretical approaches to risk assessment, comparative analysis - to compare the criteria for assessing the creditworthiness of individuals and legal entities, as well as a systemic approach - to consider the process of credit risk management in relation to other functions of the bank. It was concluded that the system of indicators for assessing the creditworthiness of an individual is comprehensive and should cover not only financial but also non-financial characteristics, namely the borrower's age, marital status, number of dependents, place of residence, socio-behavioral characteristics, etc. It is proposed to include in the system of indicators for assessing the creditworthiness of legal entities factors that allow for a comprehensive assessment of financial stability, operational efficiency and the potential to fulfill obligations to creditors. The successful application of these indicators will allow banks to make informed decisions on granting loans and minimize the risks associated with non-repayment of loans. The following are proposed as strategic and technological measures to improve risk management in the banking sector: implementation of integrated creditworthiness assessment systems; implementation of integrated creditworthiness assessment systems; increasing transparency and communication with regulators; management of environmental and social risks; development of stress testing in the context of new risks; improvement of regulation in the field of alternative finance; improvement of staff skills and their qualifications.