INSTRUMENTS FOR MANAGING A BANK'S CREDIT PORTFOLIO AS MEANS OF ITS SUSTAINABLE GROWTH

The article formulates and analyzes instruments for managing a bank's credit portfolio, which are aimed at increasing the size and volume of the credit portfolio, both through direct and indirect actions, by influencing the behavior of borrowers, both existing and potential, through the optimization, restructuring, and improvement of the lending process. It highlights how credit management and the current credit portfolio contribute to increased bank profitability, and how the proposed instruments can be applied in practice, with a focus on identifying positive factors and potential difficulties or threats arising from the implementation or use of such tools. Introduction: The purpose of the study was to create a possible toolkit for credit management, in order to demonstrate practical means of increasing bank profitability as a result of credit portfolio growth. Methods: The study utilized methods of analysis and synthesis of information within a systemic approach, ensuring the systematization of the proposed bank credit portfolio management instruments by reflecting the interconnectedness between them and how some elements influence others. Additionally, methods of induction and deduction were employed to form an understanding of the practical use of the instruments, moving from general facts to micro-consequences, and in the reverse direction, from small impacts with a global result in the context of credit management. Research Results: The research results represent a generation of information, based on which the main theses regarding the complex of credit management instruments are presented. When using these instruments, the primary goal is seen as increasing the volume of the bank's credit portfolio and, as a consequence, its profitability, through direct or indirect influence on the lending process during its management. Key Conclusions: The key conclusions are presented by statements that emphasize the importance of creating such a set of management tools and demonstrate how the proposed toolkit operates in use, highlighting its practical utility for banking institutions.