Экономические науки/1. Банки и банковская система

Куделка О.М., Щука А.А., Мартынович В.Г.

Полесский государственный университет, Беларусь

BANKS’ PROBLEM CREDITS AS A FACTOR CONSTRAINING THE DEVELOPMENT OF ECONOMY

Nowadays there are a lot of indicators to characterize an economy development level. One of them is existence or absence in the banking sector of such category as banks’ problem credits. Practically in all countries this issue occurs as bank activity is always connected with risk of refund of money.

In spite of the fact that banks’ problem credits are actual for the Republic of Belarus, in the legislation of banking in Belarus and the regulations of the National bank the definition of such terms as " nonperforming loan" or "problem credit" were absent for a long time. Today, the bulletin of bank statistics gives the following definition: Banks’ problem credits – debts of sectors of the economy on credits which was recorded in overdue and extended debt accounts. [1, p. 274].

If there are the more arrears on the credit the more risk of none so the bank can meet a loss. First of all, the bank loses the planned profit that forces it to withdraw money from the reserves to repay interest on deposits and conduct monetary operations. Besides, the bank has to pay a salary to employees working with problem debtors, and also expenses connected with withdrawal of borrowers’ property and judicial proceedings. Losses which will be incurred by banks in case of borrowers’ nonpayment are much bigger than financial and first of all will be reflected in his reputation. Any unauthorized use of credits, a fall in credit turnovers, moral and physical aging of mortgaged property, a deterioration of a financial state of the Guarantor of the borrower, and also the growth of the refinancing rate can be the reasons of credits nonpayment.

The existence of banks’ problem credits is noted both on individuals, and on legal entities, but it should be noted that the risk of problem debt emergence is higher on legal entities.

As it has already been mentioned above, there are problem credits in the banking system of The Republic of Belarus therefore we will consider the dynamics of problem debt on the credits in The Republic of Belarus (table 1).

Table 1 – The level of problem debt on the credits granted by banks of The Republic of Belarus during 2013 – February, 2015.

	1.01	1.02	1.03	1.04	1.05	1.06	1.07	1.08	1.09	1.10	1.11	1.12
Problem debt on the credits granted by banks of the Republic of Belarus, Br bn
2013	1097,2	1062,6	1125,4	1409,6	1641,2	1751,4	1740,2	2050,7	1839,4	1901,3	2085,4	2450,4
2014	2527,4	2782,7	3178,5	3812,0	4386,9	4403,0	4526,7	4535,4	4258,8	3844,8	4117,3	3857,4
2015	4605,4	6103,0
Problem debt in national currency, Br bn
2013	418,9	459,1	463,2	662,1	727,0	699,8	656,1	851,5	741,8	826,5	944,2	1103,1
2014	1108,4	1273,6	1389,9	1690,5	1730,0	1661,2	1478,0	1440,0	1528,2	1547,0	1363,8	1428,9
2015	1446,7	1803,1
Problem debt in foreign currency, USD m
2013	79,1	69,9	76,7	86,1	105,7	121,2	123,3	135,0	122,1	118,4	123,9	144,4
2014	149,2	156,5	183,3	214,9	266,2	272,0	298,9	300,2	262,1	217,2	257,1	224,9
2015	266,6	279,9
Problem debt to legal entity, Br bn
2013	817,4	781,2	843,3	1115,9	1339,6	1439,5	1411,5	1709,0	1491,4	1542,6	1716,0	2078,5
2014	2145,0	2388,9	2777,1	3400,0	3959,7	3969,6	4088,0	4100,5	3835,7	3409,0	3679,8	3408,7
2015	4157,4	5601,4
Problem debt to natural person, Br bn
2013	279,8	281,4	282,1	293,8	301,7	311,9	328,7	341,7	348,0	358,8	369,4	371,9
2014	382,4	393,8	401,4	412,1	427,2	433,4	438,6	434,9	423,1	435,7	437,6	448,7
2015	448,0	501,6

Note – Source: own development on the basis of [2,3].

On the basis of the presented data it should be pointed out that throughout the analyzed period there was a growth of problem debt, both in national and in foreign currencies. The increase is better shown on graph 1.

Graph 1 - The sum of problem debt on the credits granted by banks
of the Republic of Belarus, Br bn.
Note – Source: own development on the basis of [2, 3].

On the 1^st January of 2014 the sum of problem debt was 2527,4 billion rubles that is 1430,2 billion rubles more than on the same date in 2013 and 2078 billion rubles less than on the 1^st January of 2015.

The main share in problem debt on the credits account for debts in foreign currencies. It changes approximately from 53% up to 70% of the principle throughout different months. The size of problem debt in the national currency has increased from 418, 9 billion rubles up to 1446, 7 billion rubles from 2013 to 2015, this indicator in foreign currencies has increased by 187, 5 million US dollars from 2013 to 2015.

The permanent growth of banks’ problem credits forces banks to reduce their quality by all means. Depending on the reasons for such loans the bank has the right to take the following measures:

· to transfer the credit to a lower category;

· to exercise a daily control of the account of the borrower regarding the emergence of an overdraft;

· to analyse possibilities of receiving security for credit (in case the debenture debt takes place);

· to develop programs of credit structure changing;

· to appoint managing directors and consultants to work with borrowers on behalf of a bank;

· to concede requirements of overdue bank debt to the new creditor;

· and other measures which are considered as necessary ones.

So the matter of banks’ problem credits is becoming more and more essential for banks as one number of them is steadily growing. Therefore banks should carry out the policy that aims at on the one hand on toughening of conditions of issuance of credit, on the other hand on simplifying conditions of its repayment. Anyway, banks should pay attention to such types of credits.

Литература

1. National Bank of The Republic Of Belarus – Bulletin of banking statistics – Yearbook (2000-2013) Minsk, p.287

2. Национальный Банк Республики Беларусь - Бюллетень банковской статистики / Региональный выпуск №1 Минск 2014, стр. 51

3. Национальный Банк Республики Беларусь - Бюллетень банковской статистики / Региональный выпуск №1 Минск 2015, стр. 69