Solutions to the Problem of Loan Default in Retail Segment
Solutions to the Problem of Loan Default in Retail Segment

Summary/Abstract: Economic importance of solving the problem of reducing the level of arrears on retail loans, contributing to development of commercial banks and establishment of national banking system, determined the basic objective and relevance of the research. The article analyses the dynamics of volume and annual rate of increase in arrears on loans to households at the interim quarterly dates of 2010- 2015, examines the structure of loan portfolios in arrears of the retail sector and conducts comparison with the same portfolio of non-financial entities, identifies the main causes of household debt to banks. We have concluded that the banks need to focus on developing their own tools and technologies of debt recovering related to early detection of bad debts in order to take measures to prevent bad debts, which is possible when investing money in their own analytical and technological tools. We proposed an approach to the segmentation of debts and factors that can be used as indicators in the process of maintenance and servicing of loan portfolio.

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