Credit risk insurance in banks: strategies and management methods

Abstract

The purpose of the article is to develop and substantiate methodological approaches that will contribute to the formation of an effective strategy for insuring credit risks of banks. To achieve this goal, the study used a set of well-known scientific methods: generalization methods were used to summarize innovative approaches to insurance of credit risks of banks, as well as to formulate conclusions and recommendations; the technique of logical synthesis was used to theoretically substantiate the importance of insurance of credit risks of banks; the use of analysis and synthesis methods allowed to show the need to formulate a strategy for insurance of credit risks; the method of constructing diagrams and models was used to visualize the results of the study and their schematic interpretation. Results. A generalised optimal strategy for credit risk insurance is proposed, based on the sequential implementation of the main stages of credit risk formation and utilising innovative methods of credit risk insurance. Conclusions. Developing a strategy for insuring credit risks in banks can help reduce financial losses, enhance the stability of banking operations, and provide effective protection against external shocks. Creating an optimal insurance strategy requires a comprehensive approach that considers both internal and external factors, evaluates the loan portfolio, and selects trustworthy partners. By combining traditional and innovative insurance instruments, banks can establish a multi-layered protection system that strengthens their financial stability.