THEORETICAL AND ORGANIZATIONAL ASPECTS OF THE MECHANISM OF LENDING TO AGRICULTURAL ENTERPRISES

Abstract

Introduction. Bank lending to farmers remain one of the most important issues that need in-depth research and improvement, as the problem of lack of working capital and relatively low efficiency of production and economic activities of agricultural enterprises is only exacerbated. An effective system of bank lending is able to solve this problem. Methods. In the process of research a number of methods were used: abstract and logical - to determine the essence of the concept, structure and elemental composition of the credit mechanism of agriculture; methods of comparative analysis and synthesis - for study modern aspects of the organization of bank lending to agricultural enterprises; monographic - for identifying and systematizing specific features of the organization of the credit process in the agricultural sector of the economy; structural-functional approach – to form a conceptual vision of the credit mechanism of the agro-industrial complex and its institutional support; graphic - to illustrate and systematize the results of the study; method of analysis of hierarchies - to substantiate the criterion hierarchical system of choice by the borrower of a banking institution. Results. Theoretical views on the essence, structure and elemental composition of the credit mechanism of agro-industrial complex are systematized. The author's vision of the essence of the credit mechanism of agro-industrial complex is formulated, the structuring of its priority elemental components is offered. The algorithm of relations and interactions between the lender and the borrower as subjects of crediting is systematized. The specifics of the bank's credit policy in relation to agricultural enterprises are identified and the range of credit products for financing their working capital and investment is analysed. The directions of increase of efficiency of cooperation of banks with agrarians in the field of crediting are offered. Discussion. The obtained results of the research can be used by the bodies of branch management of the agrarian sector of the economy, as well as by banking institutions in the development of measures and directions for optimization and improvement of lending to agricultural enterprises. Prospects for further research are systematization and refinement of methodological aspects of assessing the impact of bank lending on agricultural security of the state, as well as testing methods of economic and mathematical modelling to assess the impact of bank lending to agricultural enterprises on the gross product of the agricultural sector and GDP. Keywords: credit mechanism; credit process; credit relations; bank credit; risk; creditor; the borrower; credit product; state support.