BANK LENDING OF COMMERCIAL REAL ESTATE

Abstract

Background. Banks’ proposals of loans for commercial real estate services have some differences in standard and non-standard terms of their provision. Instead, most clients focus only on standard loan terms and only some of them on non-standard ones. A comprehensive approach to the simultaneous consideration of standard and non-standard conditions for obtaining a loan for commercial real estate has not been developed in modern theory and practice of banking, which should be the basic basis for the borrower’s decision in choosing of the lending bank. The aim of the article is to identify current trends in the development of bank lending for commercial real estate in Ukraine, as well as the economic justification of the borrower’s choice of bank in the process of making a decision to obtain a loan. Materials and methods. Method of generalization and historical method were applied in the study of trends in lending for the acquisition, construction, repair, reconstruction of commercial real estate; methods of analysis and synthesis were used in the diagnosis of standard and non-standard conditions of credit servicing of commercial real estate. The authors provide an analysis ofthe choice of the bank to obtain a loan based on an integrated assessment of its attractiveness to the client using system approach. Results. A methodical approach to the integrated assessment of the economic attracttiveness of a bank loan for commercial real estate services has been developed. It is based on the Pareto principle, according to which standard lending conditions are taken into account in 80% and 20% is non-standard. This methodological approach allows the borrower to make an informed management decision on the correct choice of the lending bank. Conclusion. Loans for commercial real estate services, except the warehouse real estate sector, have decreased due to the COVID-19 pandemic. Demand for construction loans and repair of warehouses remained relatively stable. The practical approbation of the offered methodical approach of a complex estimation of credit offers of the most active Ukrainian banks on an example of the enterprise which planned to receive the credit for repair of the warehouse real estate is carried out. The choice of the creditor bank is substantiated according to the calculations results. Keywords: pandemic, banks, commercial real estate, lending, grant element, Pareto principle, standard and non-standard lending conditions, integrated assessment.