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.

38 environment and the needs of market participants. It involves the establishment of clear standards for managing the credit process in general and credit risks in particular [3]. From the analysis of the approaches of various scientists to the interpretation of the essence, it follows that credit policy is a key tool for managing the credit activities of a bank, as it determines the directions of development, improvement of mechanisms for the accumulation and allocation of credit resources, and also contributes to increasing the efficiency of banking activities. The bank's credit policy covers its strategy and tactics for organizing the lending process. The credit policy strategy reflects the long-term goals, priorities and objectives of the bank in the credit market, while tactics determine practical tools, mechanisms and rules by which strategic guidelines are implemented in daily activities, and also regulates the procedure for conducting credit operations and organizing the entire credit process [4]. In the practice of Ukrainian banks, problems of excessive centralization or, conversely, excessive decentralization of credit department management, as well as the lack of proper restrictions on the concentration of risks in the credit portfolio, are often observed. This leads to an increase in the level of credit risks and a decrease in the efficiency of banking activities. Therefore, when developing and implementing credit policy, banks should pay special attention to preventing such errors or promptly eliminating them if they are detected. Lending is one of the main functions of the banking business, which plays a key role in financing both consumer needs and investment projects of individuals, legal entities and state structures. The effective performance of credit functions by banks directly affects the economic situation in the regions where they operate. Providing loans contributes to the creation of new enterprises, increases the level of employment and stimulates economic activity, creating conditions for sustainable development. In the post-war period of development of the Ukrainian economy, the strengthening of the role of bank lending is of particular importance [4]. The weakening of the domestic banking system under the influence of war and financial instability necessitates a constant review of the