THE ESSENCE OF THE BANKS CREDIT POLICY AND THE PECULIARITIES OF IMPLEMENTATION IN BANKS WITH FOREIGN CAPITAL ÑÓÒÍ2ÑÒÜ ÊÐÅÄÈÒÍÎ ̄ ÏÎË2ÒÈÊÈ ÁÀÍÊ2Â 2 ÎÑÎÁËÈÂÎÑÒ2 ̄ ̄ ÂÈÊÎÍÀÍÍß Â ÁÀÍÊÀÕ Ç 2ÍÎÇÅÌÍÈÌ ÊÀÏ2ÒÀËÎÌ

Abstract. The article considers the points of view of scientists, regarding the concept of “credit policy”, suggests the author’s definition, identifies directions for the implementation of credit policy and the principles of a weighted assessment of credit risk. The objectives of the implementation of the credit policy, its functions, micro and macro factors, affecting the credit policy of the bank are identified. The most topical issues of quality control of the loan portfolio were investigated, and the documents included in the lending standard were studied. A definition of the bank’s credit resources has been proposed and their composition has been determined, the author’s vision has been proposed of the approval process of a bank’s credit policy with foreign capital under difitalization.


References
Abstract. The article considers the points of view of scientists, regarding the concept of "credit policy", suggests the author's definition, identifies directions for the implementation of credit policy and the principles of a weighted assessment of credit risk. A definition of the bank's credit resources has been proposed and their composition has been determined, the author's vision has been proposed of the approval process of a bank's credit policy with foreign capital under difitalization. In Ukraine, the issue of credit policy development remains essential, and there is no clear answer. Credit policy is a system of principles established by the central bank and the state in the credit sector in order to regulate the credit process in banks. Credit policy should shape the content of the loan portfolio and set standards for credit decision making. It should also include rules for the implementation of specific objectives, including standards and instructions that provide methodological support for its implementation. The purpose of the article is to determine the nature of the bank's credit policy and features of its implementation in banks with foreign capital. Particular attention should be paid to the systematization of the principles of a balanced credit policy, as well as its primary stages. The goals of the bank in conducting a balanced credit policy, the functions of the credit policy, macroand micro factors that influence it are determined. The author emphasized the importance of sound lending principles and the composition of lending standards. It is substantiated that the objectives and standards of lending are determined by the strategic plan of the bank's development and can be formulated both in the long-term development plan and in the bank's budget for the current year. The development of any bank's credit policy depends on some factors, among which are the macro factors and microprocessors identified by the functions of the credit policy and its directions. The article proves that a commercial bank's credit policy is a combination of its credit strategy and lending tactics.
Keywords: loan, deposit, credit risk, loan portfolio, factors, digitalization, credit resources.  Formulation of the problem An important leverage in stimulating the economic development of any country is a loan. Bank lending is an important component of the economy and financial sector of Ukraine. As the practice of banking activity shows, loans occupy a significant share in active banking operations, and it is the lending that brings a significant portion of profits to banking institutions. Before starting to issue loans, bank must formulate its credit policy (in accordance with its policies in relation to all other activities: deposit, interest, tariff, technical, personnel), and also to provide methods and means for its realization. Formulation of the bank's policy is one of the stages of its planning. This refers to the stage at which some previously consolidated qualitative targets of the bank's activities in relation to various objects of banking management should receive a refined qualitative and quantitative expression for a specific planning period and become concrete plans of the bank as a whole and / or its individual units [1]. Today it is important to identify the peculiarities of implementation of credit policy, especially in banks with foreign capital. The purpose of this article is to identify the essence of credit policy, directions and objectives, its functions, micro and macro factors, affecting the credit policy under digitalization, to investigate the bank's credit resources and their composition in a bank with foreign capital in modern conditions.

Description of the main research material
In modern native science, there is no unambiguous interpretation of the term "credit policy of the bank". The range of assertions varies from the position that credit policy is a system of principles established by the central bank and the state in the credit sphere with the purpose of regulating the credit process in banks; credit policy should form the content of the loan portfolio and establish standards for making credit decisions. Often, credit policy is considered by Ukrainian scholars and practitioners as a strategy and tactics of the bank in the field of credit operations. According to most experts, this definition only partially determines the essence of credit policy and allocates its individual components -the strategy and tactics of credit operations. In addition, the credit policy of the bank must take into account an additional set of components [2].
The Association of Ukrainian Banks also defines the credit policy of a commercial bank as a "strategy and tactics of the bank for attracting funds and directing them to lend to the clients of the bank (borrowers) on the basis of principles: return, urgency, differentiation, security, and payment." Lagutin V.D. adds that at the same time, the credit policy in the context of the strategy includes the priorities, principles and objectives of a separate bank in the credit market, and in relation to tactics -the financial and other tools used by this bank to realize its goals in the implementation of credit agreements, rules of their conduct, the rules of organization of credit process [3].
The credit policy of a commercial bank must contain rules for the implementation of specific goals, including standards and instructions that represent the methodological support for its implementation. The credit policy of a commercial bank is usually developed and improved by senior management of the bank (often it is the bank's president, vice-presidents, credit committee) and forms the main lines of credit activity: objective standards and criteria that should be guided by bank employees; main actions of persons who make strategic decisions in the field of lending; principles of control over the quality of credit activity management in the bank and the work of internal and external audit services [4].
"Â²ÑÍÈÊ". Âèïóñê ¹ 2 (40), 2019 The credit policy of a commercial bank is a combination of its credit strategy and credit tactics. The strategy defines the main principles, priorities and goals of a particular bank in the credit market, while tactics are specific financial instruments used by the bank to realize its objectives in the implementation of credit agreements, rules for their implementation, and the procedure for organizing the credit process. The bank, while determining the priority lines of lending, is guided by the ability of the lending facility to develop steadily and compete on the market. The loan contract defines the rights and obligations of the bank and the specific borrower, taking into account the nature of the loan granted, the size and procedure for paying interest on the use of the loan, the type of collateral, the procedure and timing of its repayment, the economic responsibility of the parties for non-fulfillment of obligations assumed. The manifestation of the essence of the commercial policy of a commercial bank lies in its functions. Conditional, they can be divided into two groups: general, inherent in various elements of banking policy, and specific, distinguishing credit policy from other elements of banking policy [5].
Thus, credit policy creates the basis for the organization of the credit process and defines: -priority lines of lending and the specifics of the bank's activities in the credit market; -goals, according to which a loan portfolio is formed (types, term, volume and risk of loans granted); -a description of the standards by which the quality of loans is determined; -the level of permissible risk; -criteria of favorable and unfavorable loans; -opportunities of the bank and its clients; -rules for the creation of reserves for the reimbursement of possible losses under bank lending operations; -the procedure for using the reserve for nonstandard loan arrears; -the main rules for accepting, assessing and implementing collateral under a loan; -powers and responsibilities of credit department employees, etc. It needs to be clearly defined that credit risk is defined as the present or potential risk for revenues and capital arising from the insolvency of a party that has undertaken to comply with the terms of any financial agreement with the bank or otherwise fulfill its obligations assumed [6]. Although the principles set out below are the most logical for use in lending and borrowing operations, they should be used in any transaction where there is a credit risks (Fig. 1.1).
Determine and approve your credit policy -means to formulate and consolidate in the necessary internal documents the position of the management of the bank, as a minimum, on the following issues: In our country, the issue of the need to develop a credit policy to date remains acute and there is still no unambiguous answer to it. Most Ukrainian banks often fit formally to develop their own development strategy, defining basically current goals in lending that do not formulate strategic objectives of the bank and do not conduct relevant market research. However, a bank that does not think about development prospects, which is oriented only on current trends, cannot develop due to the changing economic situation in the country. All provisions of credit policy should be backed up by practical measures, which together represent the mechanisms of realization of credit policy. All measures designed to realize the planned credit policy must be considered and approved by the bank's management, and the relevant decisions are issued in the form of internal documents. It is important to determine the necessary volumes and available (including the price factor) sources of replenishment of credit resources, to expand the resource base; establish and, if necessary, review the values of acceptable risks and lending limits (by industry, types of industries, borrowers' categories, per borrower, etc.), the required level of liquidity; diversify their credit services and improve their quality, expand the client's clientele (if the credit policy includes such goals); It is better to check borrowers' creditworthiness, to try to increase the level of repayment of issued loans; timely and to the extent necessary to create reserves to cover possible losses from lending activities; to improve the organizational, informational, analytical and methodological support of the credit process [8]. ¹ 2 (40), ), ), ), ), 2019

"Â²ÑÍÈÊ". Âèïóñê
Goals and standards of lending are determined in accordance with the strategic development plan of the bank and can be formulated both in the long-term development plan and in the budget of the bank for the current year. One of the main objectives of the credit policy is the highly profitable placement of liabilities (including the attracted deposits and deposits) of the bank in lending products while maintaining a certain level of quality of the bank's loan portfolio and forming a unified approach to lending operations, especially if there is a branch network in the credit organizations [9].
The development and implementation of a bank's credit policy should aim at achieving the following objectives: -only such a kind of risk should be allowed that it allows to create high quality assets and ensure a constant target profitability level; -to create a highly professional team of loan officers who provide high quality loan portfolio of the bank; -loans to finance economically viable, costeffective projects that are in line with the Bank's strategic objectives; -avoid the use of highly competitive, but unjustified methods of lending; -ensuring a balanced and optimal use of credit resources; -achieve an optimal balance between the growth of the volume of the loan portfolio and the pace of improvement of its quality; -implementation of all requirements and normative indicators set by the National Bank on the volume of credit investments, the maximum amounts of loans granted to one borrower; -expansion of the client base by improving the quality of customer credit services and others. The basis of credit policy should be two main principles: the reliability and profitability of the placement of funds. The bank's conservative credit policy and experience in the market of credit services will allow the bank to combine an increase in the loan portfolio with a high level of its reliability. Thus, credit policy establishes approaches, defines the general principles of lending to the clients of a commercial bank, determines the types of loans granted (loans), the powers of the various levels of the bank for the adoption of these issues, some operating details of credit procedures. The role of credit policy should be understood as a set of its functions, that is, expectations, reasonably related to its development and application. Therefore, we can assume that the bank's credit policy function in general is to optimize the credit process, bearing in mind that the goals and priorities of the development (improvement) of lending determined by the bank and make up its credit policy.
In the economic literature there are the main functions of credit policy, given below ( Table 1.) The development of a credit policy of any bank depends on a number of factors, among which macro factors and microprocessors can be identified.
Macro factors are factors that influence the formation and successful development of a bank's credit policy, which he cannot directly influence. These factors include: -macroeconomic situation in the country as a whole and trends in its development; -potential and economic features of the region in which the bank operates; -state and level of development of the money market of the country; -credit policy of competitors -other commercial banks; -limitation on the volume of credit operations, which are established by law. Unlike macro-factors, a commercial bank can directly affect micro-factors affecting the bank's credit policy and, with the help of their regulation, independently formulate and improve their credit policies, if necessary.
Micro factors include, first of all, such factors as: -qualification of banking personnel; -providing banking personnel with the necessary informational and working materials; -readiness of the bank staff to work with different categories of borrowers; -interest rate policy of the bank in the field of issued loans;

Functions of credit policy Characteristic 1.! Commercial function
It is in receiving the bank's profit from conducting various operations, in particular, credit.

2.! Control function
It manifests itself in the fact that credit policy allows to control the process of attracting and using credit resources by banks and their clients, taking into account the priorities defined in the credit policy of a particular bank.

3.! Stimulating function
It is in the stimulation of the accumulation of temporarily free cash in banks and their rational use.

4.! Specific functions
This is a function of optimizing the credit process. The function of this function is aimed at achieving the goal of banking policy. -potential and existing borrowers of the bank [10]. After analyzing the above micro and macro factors, the management of the bank begins to develop its own credit policy. At the fifth stage of development of credit policy, the author identified three types of credit policies of commercial banks: conservative, moderate and aggressive. The bank's credit policy is defined as conservative if part of the loans in the total amount of the bank's working assets does not exceed 30%, that is, the bank provides its profitability through less risky active operations, but in this case it loses a significant segment of the market. Such a relationship between loans and working assets is desirable for a newly established bank, which does not yet have sufficient experience in the credit market. Under moderate credit policy, part of the loans in the total amount of working assets varies within 30-50%. Such a policy is inherent in stable and reliable banks with sufficient experience in the field of lending. In the case where part of the loans exceeds 50% of the total amount of working assets, the bank's credit policy is aggressive. Aggressive credit policies should only be justified by super-profits and should not be long-lasting. It should be remembered that the greater part of loans in the total amount of working assets and the longer the period of its existence -the higher the level of credit risk [11].
At present, the most urgent issues of quality control of a loan portfolio are due to the need to pay particular attention to the following issues: -analysis of the credit market and development of measures for attracting and selecting the most favorable loan applications for the bank; -analysis of borrower's financial condition; -analysis of mortgages and other provision of loan repayment; -compliance with the principles of lending; -periodic testing of a loan issued for its return (monitoring of the borrower's state, target markets, economic situation); -analysis of the structure of the loan portfolio; -lending in the context of the risk associated with the economic crisis, inflation [12].
The lending standards contain samples of documents with which the credit department employees work, the list of actions of bank employees responsible for the process of bank lending, and their powers. The main task of lending standards is to determine the practical actions of the credit department employees to implement the bank's credit policy.
The following standards should be reflected in the lending standards: -list of documents submitted to the bank by the borrower for obtaining a loan; -requirements for providing loans, guarantees and sureties; -the procedure for assessing the borrower's creditworthiness; -requirements for the execution of credit documentation; -samples of documents (loan agreement, pledge agreement, suretyship, etc.) [13]. According to the main provisions of the credit policy, the bank carries out credit operations within the limits of available credit resources and is responsible for its obligations to clients to all the property belonging to him and at his own expense [14]. Under the credit resources of the bank are understood a set of own, involved and borrowed financial assets of the bank, which are in direct disposal and used at his discretion for the implementation of credit activities (the structure of credit resources is reflected in Fig. 1.).
The Bank independently determines the procedure for attracting and using funds, conducting credit operations, setting interest rates and commissions. At the same time, the level of the interest rate on the granted loans cannot be lower than the interest rate on loans received by the bank and interest rates paid on them for deposits. Loans are granted to all economic entities, regardless of their branch affiliation and ownership, as well as to individuals. Banks can provide loans to economic entities in cashless form both in national and foreign currency, by paying payment documents from a loan account or transferring funds to the current account of the borrower, as well as in cash through the bank's cash desk. Credit relations are regulated on the basis of loan agreements concluded between the creditor and the borrower only in writing and determine the mutual obligations, as well as the responsibility of the parties [13].
Conclusions and prospects for further decisions Consequently, to date, the principles of rational lending, which require a reliable assessment not only of the object, subject and guarantee quality, but also of the level of margins, profitability of credit operations and risk reduction, play an important role. We have the conclusion that to define and approve our credit policy means to formulate and consolidate in the necessary internal documents the position of the management of the bank on the priorities of the bank in the credit market and the definition of the objectives of lending.
Relations between banks and customers will also have significant changes, and banks will have to look for a new balance between branches and online services, contact centers. Without a doubt, the role of offices will remain important, but the divisions will render expert services more likely to perform simple banking functions. The Ukrainian banking system needs to evolve dynamically to keep pace with the rapid changes in the economic and social environment. One of the key issues of such development will be dgitalization. It will remain a central issue for the  Ukrainian banking sector, which will be forced to develop a more modern range of services to meet the country's new needs, including in the area of insurance, asset management and structural products.