Methodological Aspects and Specific Features of the Insurance Mechanism in Improving the Efficiency of Credit Risk Management in Commercial Banks

In modern financial systems, commercial banks play a crucial role in supporting economic development by providing credit to businesses and individuals. However, lending activities are always associated with various types of risks, among which credit risk is considered one of the most significant. Credit risk arises when borrowers fail to fulfill their financial obligations in accordance with the agreed terms. Ineffective management of this risk can lead to serious financial losses, reduced liquidity, and instability within the banking sector.