Scoring technologies in credit transactions

The article substantiates that in conditions of uncertainty and frequent effects of external shocks on the economy, a high level of credit risk and unsatisfactory quality of the loan portfolio remain problematic sides of the Kazakh banking sector. A large volume of non-performing loans does not allow banks to improve their loan portfolio, improve lending technology, and form provisions for potential risks. One of the ways to ensure the repayment of the loan and reduce credit risk is to conclude a contract for credit risk derivatives. Credit derivatives make it possible not only to reduce credit risks, but also to sell them. Entities wishing to buy or sell credit risk can participate in the derivatives trading market. Tradable credit derivatives products include credit default products, credit default swaps, collateralized debt obligations, and credit notes. However, there are no hedge funds or insurance companies in the Kazakh market that would agree to take on the risk. Therefore, for the banking sector of Kazakhstan, the most acceptable in the current conditions is the technology of credit scoring, which allows, firstly, on the basis of a system of criteria to prevent the appearance of non-performing loans in banks, and secondly, to build an effective method of managing problem loans.