Credit transaction limitation as a tool to mitigate the consequences of violation of credit boundaries

Ushanov Alexander E.

This article is devoted to the analysis of the interdependence of the boundaries of credit at the micro level, on the one hand, and its essential characteristic - repayment, on the other. The theoretical aspects of the concept of "credit boundaries" are considered. The factors of violation of the boundaries of credit provided by banks to private and corporate clients are analyzed, resulting in the occurrence of overdue loans. It is noted that the current lending mechanism does not fully take into account the challenges of today. Based on the provision that the credit limit is a quantitative credit limit on the part of the lender, a mechanism for limiting corporate transactions is proposed, built on the hierarchy of the system of limits, the ultimate goal of which is to minimize the risks of non-repayment of the loan as the main indicator of violation of its boundaries.

Keywords:credit boundaries, Bank of Russia, consumer loans, credit boundaries, overdue debt, credit limits, hierarchy of limits.