QUALITY MANAGEMENT SYSTEM OF BANKS’ LOAN PORTFOLIOS: PRINCIPLES OF FORMATION AND IMPROVEMENT

Abstract

The article examines the theoretical and methodological foundations for the formation and improvement of the system for managing the quality of commercial banks’ loan portfolios. The paper analyzes approaches to credit risk management, the structure and processes of the system, as well as regulatory and economic factors affecting loan portfolio quality. Particular attention is paid to the role of the Bank of Russia and international standards (Basel III, IFRS 9) in the development of domestic practices for asset quality management. The study outlines directions for improving assessment methodologies and adapting Russian banks to best international practices. The research substantiates the need for a risk-oriented management model that ensures a balance between profitability and the sustainability of credit operations. Key factors influencing portfolio quality are considered, including macroeconomic instability, regulatory changes, and internal banking procedures. The paper identifies modern tools for monitoring and controlling credit asset quality, such as stress testing, risk diversification, and the formation of reserves for expected credit losses. The results emphasize the importance of integrating quantitative and qualitative assessment methods, developing internal rating systems, and enhancing corporate risk management as the foundation for maintaining the financial stability and long-term resilience of commercial banks.