Lending to individuals by commercial banks in Kabardino-Balkar Republic: current state

Lending to individuals remains popular among residents of Russia, even in the financial crisis. The development of these types of banking services is c re- strained by factors such as high risks of loan default, lack of effective credit management, weak credit infrastructure, lack of information support of banks, high interest rates. In these circumstances, there is a need to develop new ap- proaches to lending to individuals by banks in promoting economic, political and social development of Kabardino-Balkar Republic. The article is aimed at investigation the current state and identifying trends in lending. In the research process the authors have investigated the current state of analyzed services and systematized data on the status and trends of the lending market in the Kabardino-Balkar Republic. The article presents results of a comparative analysis of features of lending to individuals by banks of the republic. As a research result, the authors have identified promising areas of lending and offered changes in the system of consumer crediting. The scientific works of domestic and foreign scientists in the field of financial, credit systems, economic analysis and marketing research were used in the research. The authors used such general scientific methods, as analysis, synthe- sis, analogy. The method of analytical groupings and comparative analysis were used to process bank statements. The graphical method were used for visual interpretation of the research results. As a result of the marketing study, the authors have revealed preferences of consumers of Kabardino-Balkar Republic in the field of lending, as well as the factors affecting the choice of bank. The results of the study can be used by banks in Kabardino-Balkaria to improve activities in the field of lending to indi- viduals. The authors have also discovered the most popular types of loans in residents of Kabardino-Balkaria. high interest rates, long procedure of loans, lack of risk insurance are the main reasons that reduce the demand for loans.