Credit risk management in commercial banks

Abstract

Development of the banking sector in Kazakhstan is characterized by a rapid pace. This growth is combined with increased competition, access to foreign markets, and the birth of new banking products. Most banking services fall on credit activities. In this regard, it is relevant to build an effective risk management of the loan portfolio. The purpose of the study is to develop proposals for improving the management of credit risks in the banking sector. The research methodology is based on the use of such methods as generalization, statistical methods, comparative analysis and statistical method. The authors analyzed the loan portfolio of the banking segment and based on this, conclusions and suggestions were made to improve the quality of lending. It is noted that over the past few years there has been a tendency to increase loans to individuals in the structure of the loan portfolio. The article outlines a number of proposals aimed at improving and enhancing the quality of credit risk management in the current economic conditions.