Abstract
A study of possible development directions of credit cooperatives in the current challenges of economic space is conducted for effective formation. Modern credit cooperatives are the two most common types: cooperative banks (mostly in Europe) and credit unions (in most parts of the world) and are credit cooperative sector of the economies of many countries. Braking factors for development of credit cooperative are: imperfection of legislation; lack of real financial support from the state; improper control of credit unions; unprofessional administrative bodies on audits of unions and, in some cases, outright cover-up of illegal activities; formation of negative public opinion in the media; encouraging of borrowers do not repay credits; unwillingness of managers of a number of credit unions to implement the basic principles of cooperative credit activity and growth of inconformity of credit union activities with the principles of cooperation. The proposed model for developing three-level cooperative credit system in Ukraine provides phased expansion of the market mandate for credit unions in corporate lending and the provision of financial services, creation of credit cooperatives, central and local cooperative banks and other elements of the system that are addressing the whole spectrum of problems, in particular the system of guarantees and deposit insurance system to support the financial stability of credit unions, credit bureaus, centers of information technology, service infrastructure that would ensure minimizing risk and entry of credit unions in payment systems, educational infrastructure and so on.
Highlights
In a developed society, financial services are not less important than production
Problems of credit unions are more acute in the financial crisis and the crisis of the banking system of Ukraine
The proposed model for developing three-level coope rative credit system in Ukraine provides phased expansion of the market mandate for credit unions in corporate lending and the provision of financial services, creation of credit cooperatives, central and local cooperative banks and other elements of the system that are addressing the whole spectrum of problems, in particular the system of guarantees and deposit insurance system to support the financial stability of credit unions, credit bureaus, centers of information technology, service infrastructure that would ensure minimizing risk and entry of credit unions in payment systems, educational infrastructure and so on
Summary
Financial services are not less important than production. The most actively develops that segment of a service, which is related to the needs of social production and consumption, as well as financial and credit services, insurance services and more. The reason is that the basis of this relationship is the most mobile resource — money Today it is important as the growing number of financial intermediaries and improving the efficiency of their activities; it is important to develop banks and other financial institutions of different types, to ensure the full functioning of the financial infrastructure that will serve as the key to economic growth. Problems of credit unions are more acute in the financial crisis and the crisis of the banking system of Ukraine. All this determines the relevance and need for research on the current state and further development of credit unions
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