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.

39 risks accompanying credit activities. The aggravation of the crisis served as a kind of catalyst for identifying hidden problems in the banking sector, which, in turn, emphasized the need for a thorough analysis of the causes of their occurrence and mechanisms of manifestation. The main goal of such analysis is to develop effective approaches to the formation and implementation of credit policy of Ukrainian banking institutions. An important task is to identify the sources of crisis potential formation and assess its impact on the credit activity of banks. This necessitates a deeper study of the theoretical foundations of credit, its economic essence, properties and functional purpose. Credit is a complex economic category that attracts the attention of both Ukrainian and foreign scientists. Despite the presence of numerous studies, the scientific literature still does not sufficiently develop methodological principles for making credit decisions and methods for assessing the effectiveness of credit policy [2]. The creditworthiness of a bank borrower is its ability to timely and fully fulfill its obligations under the received loan, that is, to repay the principal amount of the debt together with interest. It is one of the main criteria when making a decision to grant a loan, as it allows the bank to assess the level of risk associated with a credit transaction. Creditworthiness assessment is based on an in-depth analysis of the borrower's financial condition, which includes studying its solvency, asset liquidity, debt level, capital structure, income stability, profitability and overall performance. Additionally, credit history, business reputation, quality of management personnel and prospects for further business development are taken into account. An equally important aspect is the consideration of external factors - market conditions, industry risks and the macroeconomic situation in the country, which may affect the borrower's ability to service the debt in a timely manner. The combination of these indicators forms a complete characteristic of the client's financial reliability [5]. In 2025, Ukrainian banks will assess the creditworthiness of clients using modern approaches and in accordance with new regulatory requirements, in particular, taking into account the law on credit histories (07.10.2025, the Verkhovna Rada adopted in