FEATURES OF CREDIT RISK INSURANCE

Abstract

The study of credit risks and their insurance is of great importance for the financial stability and development of the banking system. Ukraine, as a country with a developed financial sector, is no exception, and studying the specifics of credit risk insurance in the Ukrainian context is a relevant task. The growth of lending in the Ukrainian economy makes the issue of credit risk insurance increasingly relevant. Insolvency of borrowers can lead to significant losses for banks, which negatively affects their sustainability and the overall stability of the financial system. Understanding the methods and instruments of credit risk insurance, as well as their legal and regulatory support, allows banks to minimise their losses and promote the development of lending in the country. An analysis of academic papers shows that credit risk insurance is an important tool for reducing banking risks. However, the development of this sector is hampered by certain problems: low levels of trust in insurance companies, high tariffs and complexity of contracting. In Ukraine, there are two main methods of credit risk insurance: delcreditor and collateral. These methods are described in more detail in the main material of this article. The purpose of this article is to study the current state and prospects of credit risk insurance in Ukraine and to propose ways and measures to improve the credit risk insurance system in Ukraine. It is expected that the credit risk insurance market in Ukraine will develop in the following directions: increasing the role of insurance, expanding the range of products and services, increasing competition, and using new technologies. An effective credit risk insurance system is a key to the stability of Ukraine's financial system. Implementation of the proposed measures will help to increase confidence in insurers, reduce risks for banks, and boost the credit market. This annotation examines the sources, methods and instruments of credit risk insurance and offers a reviewed list of references for further research on the topic.