THE CREDIT, ITS ESSENCE AND FUNCTIONS IN ECONOMY

In modern practice it should be noted recession of scales of crediting. Such negative tendency can be explained with the toughened loan granting conditions to clients. Emergence of such conditions in many respects is explained by increase in the problem credits as a part of assets of banks. Owing to what it is impossible to avoid additional load of the equity (need of forming of allowances for possible losses), increase of credit risks, etc. Competently created credit granting system allows to interact with the changing conditions of external and internal environment of banks, to take into account modern conditions of uncertainty in the sphere of credit relations.