Regional Formation and Development Studies

In recent years many countries have experienced stagnation or even decline in the amount of mortgage credits granted to households. The credit-granting process has become significantly complicated, less transparent and excessively time consuming. This study seeks to define the improvement opportunities for credit granting through creation of a simple, transparent and accountable framework of decision-making process. To achieve this purpose the authors used qualitative method – structured interview and graphical tools – decision tree. The developed framework makes it possible to identify areas of the credit granting that might have potential for considerable improvements. The empirical results of the study indicate that decision-making process in credit granting has considerable potential for improvements. The developed framework is supposed to help commercial banks to improve the quality and efficiency of the decision-making process in the credit granting and reduce cost of credit granting process. This is possible to achieve by cutting down the duration time of alternative solutions with negative outcome – credit denial. This research introduces a valuable framework of transparent and accountable model of decision-making process in the credit granting. The authors have found that the introduced framework is suitable not only for commercial banks but also for a wide range of organizations having similar complicated and multiple staged decision-making processes.