RESEARCH OF THE EFFICIENCY OF LITHUANIAN BANKS CREDIT GRANTING PROCESS

Abstract

Purpose – to evaluate the efficiency of the credit provision process of Lithuanian banks, to submit suggestions for improvement. Research methodology – after the theoretical analysis of the efficiency of the credit granting process was developed, an empirical research using the methods of questionnaire survey and analysis of financial indicators was carried out. Findings – efficiency is usually lost at the stages of consideration of application, conclusion of credit portfolio and risk assessment. These factors were distinguished from all efficiency reducing factors: time consuming processes, not automatized stages, insufficiently informed customer. Research limitations – methods of analysis of scientific literature are limited, but they enable the analysis and identifi- cation of the efficiency of credit provision within the research. Practical implications – the article evaluates the efficiency of credit provision by selected banks and proposes measures to streamline the process. By applying the proposed measures, banks could increase the efficiency of the credit granting process. Originality/Value – previously, the effectiveness of credit granting process in Lithuanian banks has not been assessed.