ДОХІДНІСТЬ-ОРІЄНТОВАНА ЛІМІТНА ПОЛІТИКА ФІНАНСОВОЇ УСТАНОВИ

This article addresses the importance of credit limits in banking, particularly within the context of credit risk management, as outlined by the Basel Committee and the National Bank of Ukraine (NBU). It focuses on the least studied key task involved in setting individual credit limits: establishing the initial limit before credit is granted. The credit approval process is explained in three stages: submission of a credit application, decision-making by the financial institution, and, for approved applications, the establishment of individual credit limits. Limiting credit exposure is a crucial tool for mitigating credit risk and increasing profitability in financial operations, thus significantly impacting the efficiency of financial institutions. The literature review covers various methods of managing credit risk through credit limits, including Debt-to-Income (DTI) ratio used to determine the size of credit limits. Additionally, risk-based approaches are discussed, where credit limits are aligned with the internal credit rating of borrowers, and income-oriented models are explored to maximize expected returns from lending activities. The paper proposes a hypothesis that income-oriented credit limit policies are more effective and universal than risk-oriented ones. It develops a model to calculate expected profitability from credit activities and suggests that credit limits should be established to optimize revenue, taking into account the borrower’s probability of default (PD). The study introduces an innovative model for calculating credit limits based on PD, where the point of cutoff aligns with the point where profitability becomes zero, ensuring that only profitable loans are approved. The article further explores the mathematical foundation behind determining credit limits, focusing on optimizing revenue through strategic adjustments to credit limits based on PD. It also introduces a model for the credit period dependent on PD, showing that clients with lower PD tend to repay loans earlier, influencing the profitability of credit operations. Lastly, the article compares risk-oriented and profitability-oriented credit policies, showing that while both approaches can be tailored to achieve similar lending volumes, profitability-oriented policies offer higher revenue. The analysis concludes that adopting a profitability-oriented policy can enhance lending efficiency and profitability by reallocating liquidity towards loans with higher returns and higher risk.