Abstract
Abstract. Current issues of non-bank lending by financial companies and the vision of the future regulation of their activities outline in detail the developments set out in this article. Changes in the volume of lending in the non-banking financial market are analyzed. The analysis of the concentration level of loans by the amount of concluded agreements is carried out. The future vision and mission of the financial sector of the economy are formed. Criteria for assessing the required degree of supervision of a credit company are defined. In the study, we used general and specific economic methods, as well as a basic research approach, which allowed us to determine the economic nature of the financial sector and the scope of lending to agricultural enterprises.The goals of realization of an economic growth strategy for the perspective period for the achievement of the European standards in the financial market are offered. Financial support for current activities and promising economic development in Ukraine still remains a significant problem. Expanding access to financial resources of agricultural entities may be one of the factors for the development of Ukraine’s economy. The main goal of the National Bank is to introduce a risk-oriented approach in the licensing and supervision procedures of the non-bank lending market, which will allow it to develop and ensure compliance with the rights and interests of customers. It is proposed to maintain the procedure for agreeing significant participation for financial companies as a key element in verifying the transparency of ownership structures and the impeccable business reputation of owners. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals for the current state of lending and recommendations for supervision in the financial market of Ukraine. Keywords: lending, financial sector, financial sector regulators, non-bank lending, stabilization. JEL Classification G19 Formulas: 0; fig.: 5; tabl.: 0; bibl.: 15.
Highlights
Both banks and financial companies that serve non-financial corporations and households without additional financial investments can afford the use of financial technologies [3, ɪ. 45].Existing administrative barriers and shortcomings in the current legislation complicate and significantly increase the time for non-banking institutions to enter the financial services market
Non-bank lending in Ukraine and around the world is considered as an alternative
Challenges financial sector of the economy is studied in articles by Lerner and Tufano (2011), Levine (2002), Llewellyn (2018), Shubalyi (2008)
Summary
Both banks and financial companies that serve non-financial corporations and households without additional financial investments can afford the use of financial technologies [3, ɪ. 45]. GDP growth, expanded lending to the real sector of the economy, strengthening the solvency of private consumers contribute to macrofinancial stability, increasing the capitalization of the banking system and the market of nonbanking financial services. At the end of 2019, 684 financial companies were operating in the Ukrainian non-bank lending market. The Ukrainian market of loans provided by financial companies shows growth: in 2019, contracts worth UAH 79.2 billion were concluded, which is 52.5% more than in 2018 (UAH 51.9 billion) (Fig. 2). The new model of regulating the activities of financial companies providing lending services should provide opportunities for a sustainable and harmonious development of this segment of the financial market in Ukraine, as well as ensure compliance of credit companies with the rules of good market behavior.
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