Formation of the mechanism for credit asessment of borrowers in conditions of economic instability

The article investigates the state of the credit portfolio of banks in the conditions of instability of the environment and the development of the credit rating of the borrower as a mechanism to prevent the direction of growth of bad debts. The research of the state and dynamics loan portfolio has revealed its sharp deterioration in recent years due to the instability of the external macro environment. The need to reduce the volume of bad debts requires the formation of an adequate mechanism for the borrower's credit rating. Under the mechanism defined in the article the subject-object interaction and providing subsystems have aimed at making management decisions about credit and credit determination capabilities of the enterprise. The authors propose the composition of such a mechanism from the position of a system approach with the subject-object allocation and providing subsystems. As a part of providing credit subsystems the article has allocated a methodological, methodical, information, personnel and organizational support. The article has formed the basic methodological principles of credit rating, namely a comprehensive assessment; the accuracy of the assessment; the progressiveness of the assessment; an objective assessment; professionalism; reality evaluation. Using the proposed credit assessment the mechanism in practice will enhance the effectiveness of the credit relationship between the bank and the borrower.