Abstract
The paper aims to assess the influence of bank lending on the performance of enterprises in the real sector. The relevance of the study for different countries, including Kazakhstan, Kyrgyzstan and Ukraine, is shown. Structural equation modeling of the impact of bank lending on the performance of enterprises in the real sector is carried out using Ukraine as an example. Six key indicators of real sector enterprises’ performance for the period of 2007–2019 were selected as an information basis of the study. To assess the abovementioned impact, structural equation modeling was used, i.e., the Statistica program was selected as a software tool to evaluate the resulting model’s adequacy and determine the level of statistical significance of its parameters. The obtained results prove that the business lending sector in Ukraine has significant potential for its development, which ultimately will have a positive effect on the efficiency of the real sector enterprises. Moreover, adopting a balanced state policy in the sector of corporate bank lending can give impetus to the development of the domestic sector of real production and help Ukrainian enterprises overcome the crisis caused by COVID-19.
Highlights
INTRODUCTIONThe cyclical nature of economic development, destabilization of national economies due to deepening globalization, global financial crises and, the crisis caused by the SARS-CoV-2 coronavirus pandemic have led to a significant decline in business activity, which neither business entities nor government agencies worldwide were ready for (Strilets et al, 2020)
The cyclical nature of economic development, destabilization of national economies due to deepening globalization, global financial crises and, the crisis caused by the SARS-CoV-2 coronavirus pandemic have led to a significant decline in business activity, which neither business entities nor government agencies worldwide were ready for (Strilets et al, 2020).Developed countries direct significant amounts of financial and material resources to solve economic problems and support the business
It was determined that the results show that bank lending significantly af- significant integration of the banking sector infects the economic growth of Kazakhstan
Summary
The cyclical nature of economic development, destabilization of national economies due to deepening globalization, global financial crises and, the crisis caused by the SARS-CoV-2 coronavirus pandemic have led to a significant decline in business activity, which neither business entities nor government agencies worldwide were ready for (Strilets et al, 2020). Developed countries direct significant amounts of financial and material resources to solve economic problems and support the business. They are saving their economies and supporting businesses through powerful government programs. There is no such opportunity in less developed countries (including Kazakhstan, Kyrgyzstan and Ukraine), so it is necessary to look for other funding sources that will help the economy and business get out of the crisis and ensure their development. It is necessary to intensify the banking sector’s activities, the purpose of which should be to stimulate financial and economic activity by supporting business, which plays a key role in Ukraine’s economy
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