BANK LENDING IN THE PERIOD OF INFLATION TARGETING IN UKRAINE: CURRENT REALITIES AND PROSPECTS

Abstract

Introduction. The article analyzes the existing trends in the field of bank lending during the crisis of 2014-2017. The reasons for the decline in lending activity of domestic banks are considered. Mechanisms for intensifying bank lending as a necessary condition for ensuring economic growth in Ukraine are proposed. Methods. General scientific methods of cognition, induction, deduction and comparison are used in the article. Statistical and graphical methods and the method of mathematical modelling were used to analyse the causes and consequences of the decline in banks' lending activity. The system method was used in the development of proposals and recommendations. Results. Bank lending in Ukraine during the economic crisis of 2014-2017 and pandemic shocks is studied. Negative factors influencing the credit activity of banks have been identified. The main miscalculations of the National Bank of Ukraine, the Government and the legislature in the field of creating conditions for stimulating the lending activity of banking institutions are substantiated. With the help of cluster analysis, domestic banks are grouped into four clusters according to the level of their participation in lending to the Ukrainian economy. Discussion. The peculiarities of bank lending to domestic enterprises at the present stage are highlighted. Based on the analysis of the development of bank lending in Ukraine, promising strategies for intensifying bank lending support to the real sector of the national economy have been developed. Keywords: activation of bank lending, interest rate policy, refinancing of commercial banks, credit risk, creditworthiness.