Assessment and regulation of borrower creditworthiness: Bank lending is carried out in strict compliance with the basic rules principles

The purpose of my research paper is to examine in detail the assessment and regulation of borrower creditworthiness in a credit institution. The changes taking place in the economy of Kazakhstan imply significant changes in the relationship between commercial banks and economic entities. The high risk of banking activities is mainly associated with the conditions and results of its clients' activities. An analysis of the structure of the banking system's assets in Kazakhstan shows that more than a third of them are accounted for by the loan portfolio. Bank lending operations are the leading ones among others in terms of both profitability and the scale of funds placement. Today, commercial banks are forced to operate in unusual circumstances. They find themselves at the center of diverse processes taking place in the economy, politics, and the social sphere. The crisis of non-payments increases the risk of a client not repaying a loan to the bank. Therefore, assessing the creditworthiness of potential clients is of great importance at present.