FEATURES OF DETERMINATION OF CREDIT RISK ARE IN THE CONDITIONS OF THE MILITARY STATE

The article proposes the definition of credit risk and the identification of its main factors on the profitability of the banking sector. The peculiarities of the manifestations of credit risks for the functioning of the banking system of Ukraine in the conditions of martial law are considered. Objective factors have been identified that have worsened the quality of banks' loan portfolios and the creditworthiness of borrowers who have issued loans in recent years. It was determined that Ukrainian banking institutions assumed social responsibility and provided credit holidays until the end of martial law. They canceled not only the repayment, but also the accrual of interest on current loans. There is also a high probability that part of this portfolio will turn out to be non-working — people will not have the opportunity to repay the loan due to loss of income or other tragic events. Issues regarding the improvement of the mechanism of work of banks with problem loans in the conditions of war are being considered. The imperfection of the existing metods of working with non-performing loans is indicsted. In the course of the study, it was proved that the credit risk in the conditions of martial law is minimal for the banking system of Ukraine, because as a result of ineffective monetary policy, the credit burden on the national economy is minimal and insufficient for its recovery. Directions for minimizing existing risks and restoring the functionality of the banking system in the context of performing financial intermediation functions are proposed. The need for more targeted measures of state policy to eliminate banking risks due to problem loans and threats to financial stability in war conditions is substantiated.