Improving standard regulation of borrower’s credit solvency assessment

The research is devoted to identification of levels of standard regulation of borrower's credit solvency assessment and development of the directions of their improvement at the national level. It is specified that the regulation of solvency assessment process is the set of standard levels and rules of organizing regulation of credit relations reflected in legislative, standard and legal and intra bank documents directed to a specific object, namely a solvency assessment. The article allocates three standard levels of regulation of solvency assessment of a borrower as a legal entity (international, national, and intra bank); the condition of their functioning is investigated and the directions of regulation improvement at national and intra bank levels are created. On the basis of the carried-out analysis of opportunities of introduction to the Basel recommendations about solvency assessment and credit risks in domestic banking practice, the author comes to the conclusion that economic conditions are not formed for their full realization in Ukraine. The realization of the assessment system of credit risks based on external ratings regulated at the supranational level at the present stage is possible for large system banks. The article specifies the structure and content of legal support of the allocated level of credit process national regulation presented by the Civil, Economic Code, the Law of Ukraine «About banks and banking activities» and Resolutions of the NBU. It is proved that the operating system of regulations according to borrower's credit risks leads to essential increase in expenses of banks for reservation and to additional capitalization. The reasons of functioning imperfection at the national level of regulation are allocated: frequent changes and additions in acts concerning regulation of banking activities; discrepancy of separate standards of the legislation; incompleteness of conceptual framework in a number of acts; orientation of regulations to the demands set by a regulator without considering the specifics of domestic banking system. The author gives the requirements to improvement of the normative and legislative providing solvency assessment (harmonization of the legislation regulating banking activities and credit process with other acts of allied industries of the law, the accounting of domestic traditions of banking while implementation of international standards in the domestic legislation, formation of the separate law called «About Bank Credit»).