International Best Practices of Developed Countries in Using Insurance Mechanisms for Credit Risk Management in Commercial Banks

Credit risk management is one of the most important aspects of ensuring stability and sustainability in commercial banks. In modern banking practice, insurance mechanisms are widely used as effective tools for mitigating potential losses associated with credit operations. This study examines the experience of developed foreign countries in applying insurance mechanisms for credit risk management in commercial banks. The research analyzes various forms of credit insurance, including loan insurance, export credit insurance, and guarantees provided by specialized insurance institutions. Particular attention is given to the practices implemented in developed financial systems, where insurance instruments play a significant role in reducing credit risk and increasing the reliability of banking operations. The study highlights how cooperation between banks and insurance companies contributes to strengthening financial stability, protecting lenders from borrower default, and improving the efficiency of credit portfolios. Based on the analysis of international best practices, the paper also identifies opportunities for improving credit risk management systems through the wider use of insurance mechanisms in commercial banks.