Basic Principles of Interaction Between Subjects of Bank Lending

Today, the principles of bank lending are reduced mainly to the principles relating to the activities of the lender in various sources. The interaction between the parties has not deserved enough attention. This study aims to improve the classification of the principles of bank lending, to clarify the conceptual apparatus when studying lending operations and to analyze the system of principles of interaction between the lender and the borrower in the bank lending process. To obtain the results of the study, methods of theoretical analysis and generalization of scientific approaches to the subject under study were used. The article presents an approach to the development of a system of principles of lending and borrowing. The order of the formation of individual units within this system has been determined, and the list of the main qualitative and quantitative characteristics serving as the basis for the development of key terms of the credit agreement has been considered. A scheme of the principles of bank lending is presented. The principles of interaction of subjects in the lending process are grounded, the basic conditions for the interaction of subjects of bank lending are formulated. First of all, for the parties to the credit agreement, like for any other contract, it is important to manage the risks of non-compliance with legal and corporate requirements that can lead to serious financial, regulatory or legal sanctions. The fundamental principle of interaction between the lender and the borrower and the most important prerequisite for the parties to fulfill the terms of the contract (sometimes not even written) is compliance with moral, ethical and legal norms. In turn, the accurate execution of the agreed terms of the contract is not only an important condition for lending, but also a systemic principle of interaction between the parties to this process. Ideally, the borrower and the lender are business partners whose trust is a significant indicator of the success of business relations.

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