Effective Credit Activity Management in the Bank: A Systemic View of a Professional Manager

Abstract

Семенча І.Є. д.е.н., професор, професор кафедри фінансів, банківської справи та страхування Дніпровський національний університет імені Олеся Гончара Lending activities for the bank is historically central. Therefore, ensuring effective credit management will bring the bank income and successful development. Studying this from the perspective of systems theory and the classical theory of management will give bank management additional opportunities. The study in the article is caused by inaccuracies, uncertainty and fuzziness in approaches to the management of credit activities of the bank. This situation in the theory of credit management in the bank showed an analysis of recent publications. Taking into account management theory, systems theory, organization theory and modern approaches to management, the article streamlines the formation of basic and at the same time most important basic concepts in planning bank lending: goals-norms-policies-strategies-tactics. This sequence must not be broken. A parallel action or a breakdown of a sequence can lead to an increase in unjustified risks in lending and a decrease in the effectiveness of management. These are mistakes and unjustified costs in activities that are already more costly in Ukraine today than in other periods. The article gives a logical scheme of correction in a social-economic system based on a systems theory and a management theory. The author emphasized that changes in the system are provoked from the outside, from the external environment. Changes in the external environment should influence the need for changes within the bank itself. This is how change processes take place, not the other way around. The system without incentives from the outside will never change on its own initiative. So says system theory. In the article the author developed the process of managing the credit activity of banks. It consists of 8 stages: analysis of indicators of credit activity in the bank; the formation of ideas on the development of lending in the bank; formation of a bank credit policy; formation of a bank credit strategy; formation of credit tactics; organization of credit activities for the implementation of the tactical plan; control over the implementation of plans; motivation of bank personnel and customers for effective cooperation in lending. Also, for the first time, a step-by-step program of actions for the implementation of bank credit management was proposed, which can serve as a "road map" for achieving effective credit management. Attention was paid to understanding that the process of control and correction is at every stage of credit management.

Evaluating the Processes of Management of Credit Portfolio of JSC CB «PrivatBank»

“…[11], Семенча І. Є. [12] та ін. Їхні наукові праці є ваговим внеском у розвиток теоретичних і практичних аспектів управління кредитною діяльністю банків, але структурні перетворення, які відбуваються останнім часом у розвитку банківської системи України, вимагають від банків швидкої реакції для вироблення адекватних управлінських рішень, здатних нівелювати відповідні зовнішні та внутрішні впливи та максимізувати ефективність кредитної діяльності банку.…”