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The main directions of improving the efficiency of commercial banks with problem loans

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The article analyzes the increase in overdue debts on Bank loans, which affects the quality of the loan port-folio of commercial banks. Throughout the history of banking, overdue and problem loans from banks have been a source of concern for both the banking community and society as a whole. In many cases, errors in the organization of the credit and investment process lead to a loss of financial stability, waste of equity and even the bankruptcy of credit institutions. Overdue loans displace new lending, reduce the profitability and solvency of banks. When a high level of problem loans affects a sufficiently large number of banks, the fi-nancial system ceases to function normally, and banks can no longer successfully perform the function of lending to the economy. Disruptions in the financial market and Bank failures make economic recovery dif-ficult. To improve the quality of the loan portfolio and the repayment of overdue debts in banking practice, there are quite a number of methods. In the process of dealing with bad loans, it is important to choose a me-thod that will ensure success in reducing arrears. The article concludes that modern realities require constant updating of methods of collection of overdue loans, as well as continuous monitoring and order of work with problem loans. Many Russian banks do not have a system of working with problem loans, especially banks that do not belong to the category of systemically significant. Optimization of these processes in the banking system is the key to profitability and financial stability of banks and the banking system as a whole.

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