Managing the loan portfolio of banks in the context of military conflicts: Comparison of world experience and the experience of Ukraine

The study examined optimal strategies for managing banks' loan portfolios during military conflicts, with an emphasis on comparing global practices with the Ukrainian experience. The paper analysed the specific risks faced by the banking sector during periods of war, particularly a substantial increase in the share of non-performing loans (NPLs), and evaluated approaches to their minimisation and management. The methodology was based on a comparative analysis of data from the Ukrainian banking system for 2013-2024 and the experiences of countries that have faced military conflicts, such as Syria, Iraq, Yugoslavia, and Yemen. Statistical data on the dynamics of NPLs, lending activities, and the impact of war on borrowers' solvency were considered, and measures implemented by banks to reduce credit risks and ensure resilience have been analysed. The results of the study show that during the war in Ukraine, the share of NPLs reached 40%, substantially threatening the financial stability of the banking system. The comparative analysis confirms the importance of debt restructuring, tightening credit policies, effective risk management, and attracting international support to maintain banks' liquidity during the crisis period. Moreover, Ukrainian banks have demonstrated their ability to adapt by implementing modern technologies for assessing creditworthiness, risk forecasting, and managing liquidity. The findings highlight the importance of government intervention in ensuring financial stability and using innovative solutions to effectively manage credit risks. Further research is recommended to focus on analysing the role of technological solutions and international support, and regulatory measures in restoring Ukraine's financial system after the conflict ends