Business lending analysis during the war: state support programs

Abstract

The peculiarities of business lending in wartime are analyzed in the article. It is determined that crises always have a great impact on business. The crisis affects both negative and positive factors for business development simultaneously. It is found that the war made many adjustments in the national business functioning. The war factor contributes to the significant transformation of national business. It is determined that lending is one mechanism for national companies to provide support. The top-5 largest banks that provided loans to legal entities in Ukraine in 2022 are presented. The dynamics of loans number granted by banks to business entities in 2022 is presented as well as the dynamics of net loans granted to business entities in 2022. The dynamics of the corporate debtors’ working loans and loans provided under the state program “Affordable loans 5-7-9%” is shown. Working corporate loans and realized products (services) in the zone of active military operations in 2022 are presented. It is revealed that the very first stage of changes in banking activity took place in the soft loans market. The structure of concessional loans issued for national business by state and private banks under the state program “Affordable loans 5-7-9%” in 2022 is analyzed. The average amount of the concessional loans issued under the state program “Affordable loans 5-7-9%” for different banks is compared. It is determined that the average amount of the preferential loan by banks amounted to UAH 2.83 million. JSC “Ukreximbank” took the leading position in issuing soft loans for national business (UAH 7.28 million). Since the beginning of the war, banks have issued concessional loans in the amount of more than UAH 36.50 billion to support national business, their total amount is UAH 126.00 billion. It is determined that the country’s banking sector is operationally profitable. The presence of a risk of the overall profitability loss due to the urgent need to form reserves is revealed. Therefore, the main factor affecting the reduction of banks' capital is the presence of credit risk.