Allowance for possible losses on credit operations of banks is a special reserve, which is due to the need for a credit risk inherent in the business. Creation provision for credit risks - recognizing expenses to reflect actual performance of the Bank, taking into account the deterioration of the quality of its assets or increasing riskiness of lending operations. According to Article 370 of the Civil Code of Ukraine and Article 16 of the Law Ukraine "On Insurance" dated 07.03.1996 № 85/96-VR (current edition from 14.08.2009 on the basis of 1447-17), concluding the insurance contract, policyholder has the right to stipulate in the contract provisions for the payment sum insured to another person, including the bank from which it received the loan. Thus, in addition to the need to verify that the conditions of the contract applicable law, the bankruptcy court must determine whether the contract term the payment of the sum insured bank that provided the loan. In the absence of if the bank has no legal basis to require the insurer's payment of non-performing loan and the borrower interest, even in the case if between the insurer and the insured contract of insurance late payment of the loan. [11] Giving credit to the condition of his insurance, the bank must check in the treaty obligation of the insurer in the insurance case pay the sum insured bank.