The tendencies of bank crediting development to the Ukrainian economy

Abstract

The article considers the views of representatives of various theoretical trends and clarifies the essence of the economic category "credit". The current situation and problems of the credit market functioning in Ukraine are studied. The actual level of lending to the domestic economy has been established. The tendency and regional structure of the provided bank credits in Ukraine are analysed. The dynamics of lending to businesses in national and foreign currency is substantiated. A comparative analysis of the dynamics of loans granted by banking institutions to residents, businesses and individuals is made. The place of consumer loans in the bank lending system has been established. The role of short-term loans in the economic development of Ukraine is determined. The structure of loans granted to residents by maturity, non-financial corporations by type of economic activity and households by maturity was studied. The presence of negative dynamics in the growth of the share of overdue debt on loans in the economy of Ukraine has been established. Peculiarities of borrowing bank capital from enterprises of different types of economic activity by terms of loan repayments and currency are revealed. In particular, it was found that among the enterprises of the processing industry, the largest borrowers of bank funds are economic entities operating in the food industry. An analysis of lending by non-resident banking institutions was also performed. It is established that one of the most important tasks of credit management is the formation and analysis of the loan portfolio of commercial banks. The impact of the COVID-19 pandemic on lending to the economy was analysed and it was found that the negative trends in lending by the banking sector of the Ukrainian economy prevail. The main factors of stagnation of bank crediting in our country are determined. Measures for certain areas of functioning of the domestic credit market to intensify it are proposed.