Proceedings of the International scientific and practical conference ―Current Issues in Science‖ (January 9-11, 2026) / Publisher website: www.naukainfo.com. – Dresden, Germany, 2026. – 179 p.

37 significant financial losses, which threatens the liquidity and solvency of a banking institution. In conditions of high economic instability, financial and credit institutions need to promptly change their credit portfolio management strategies in order to minimize the risks of non-repayment of loans. Rational management of such risks ensures the financial stability of the bank, strengthening its position as a reliable partner for business and the population, which is of particular importance for economic recovery in a period of uncertainty. In 2025, our country continues to function and develop in the conditions of war unleashed by the Russian Federation. Despite military actions, the domestic banking system demonstrates resilience and the ability to adapt to new challenges. In this context, the credit policy of banking institutions plays an extremely important role, including short-term lending, which has become the basic financial support for both the country's population and small businesses. In a dynamic operating environment, which is formed under the influence of geopolitical tensions, economic fluctuations and changes in the regulatory framework, banking institutions face a high level of uncertainty. This uncertainty significantly affects decision-making in the lending sector and can reduce the effectiveness of the functioning of the credit mechanism. During the war, Ukrainian banks find themselves in even more difficult conditions, since the level of risk and unpredictability of the operating environment increases significantly, especially in terms of credit activity [1]. The bank's credit policy serves as the starting point in the credit process management system. It is at the stage of its development that the main principles, standards, criteria and restrictions on lending are determined - that is, the strategic guidelines for credit activity, on which the adoption of management decisions, mandatory for all structural divisions of the bank, is based [2]. The policy of credit management forms long-term priorities of credit activities in accordance with the mission, development strategy and general concept of the bank's functioning. An effective credit policy must take into account economic patterns, principles of banking management, changes in the macroeconomic