Abstract
In recent years, the banking sector of Ukraine has witnessed low lending standards and insufficient protection of creditors' rights. In addition, there were two crises in the country and, as a result, borrowers were unable to repay funds in time. At the same time the quality of loan portfolios deteriorated, therefore more than 50% of all loans became "problematic". Due to the increase in interest rates, most borrowers began to take loans for up to 3 years and in the national currency, because they are less risky. According to statistics, only about 25% of all loans are long-term. In order to encourage borrowers to take long-term loans and borrowings in foreign currency, banking institutions have reduced interest rates on these types of loans, but these actions have given only a slight increase in such loans.
Highlights
In recent years, the banking sector of Ukraine has witnessed low lending standards and insufficient protection of creditors' rights
According to official statistics of the National Bank of Ukraine, as of January 1, 2020, 75 banks are registered in Ukraine, 35 of them with foreign capital, including 23 with 100% foreign
Borrowers had problems with timely repayment of the loan, especially for loans issued in foreign currency
Summary
Avramchuk Lidiia PhD, associate professor of the Department of Banking and Insurance National University of Life and Environmental Sciences of Ukraine, Ukraine Muravskyi Oleksii PhD, associate professor of the Department of Banking and Insurance National University of Life and Environmental Sciences of Ukraine, CURRENT TRENDS IN THE BANKING CREDIT MARKET OF UKRAINE
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