Importance Considering a decrease in real income of the population, business profitability and increase in non-performing loans, it is very reasonable to address issues of effective handling bad debts. Objectives The research outlines a model for handling non-performing loans in the commercial bank during the crisis. Methods I analyzed overdue loan balance in the national banking sector and found key explicit and implicit issues. Having analyzed weaknesses and strengths in some large banks' management of bad debts, I proposed an organizational model for managing non-performing loans. Results I propose a model to handle overdue loan balances. The comprehensive model covers the entire lending activities of the bank. Conclusions and Relevance If implemented, the model will optimize the process of handling non-performing loans. The resolution of bad debts will improve the balance structure of the commercial bank and arrange for allocating loans to the real sector, being one of the priority borrowers in line with import substitution initiatives.
Keywords: credit risk, management, loan arrears, bank
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