Mechanism for Settlement of Problem Bank Credits in the Conditions of War

The article deals with the issues of improving the mechanism of work of banks with problem loans in war conditions. The imperfection of the existing methods of work on non-performing loans is indicated. The political measures aimed at the effective and timely solution of problem banking assets are considered. The components of an effective strategy are presented: identification of problem loans; development of operational capability to solve problem loans; work with troubled banks. The mechanism of reduction of problem bank loans in the conditions of war is analyzed. The criteria and signs of identifying problem assets are analyzed. Attention is focused on the operational readiness of banks to manage the growing volumes of problem loans. The international experience in the field of systemic banking crises associated with non-performing loans is considered. The practical steps of banks to reduce problem assets by creating special departments are analyzed. The effectiveness of the mechanism for collecting bad debts is assessed. A number of arguments are given to improve the process of collecting problem loans in banks. The necessity of more targeted public policy measures to eliminate banking risks through problem loans and posing a threat to financial stability in a war is substantiated. The role of state asset management agencies is motivated to complement the efforts of banks to reduce non-performing loans in times of war.