Lending to the economy of Ukraine by banks with foreign capital

Tіazhkorob, Iryna
Holub, Roksolana

Ivan Frankо Natіоnal University of Lvіv, Universytetska St., 1, Lviv, 79000, Ukraine

Tіazhkorob, I. & Holub, R. (2024) Lending to the economy of Ukraine by banks with foreign capital. Socio-Economic Problems and the State (electronic journal), Vol. 30, no. 1, pp. 55-64. URL: http://sepd.tntu.edu.ua/images/stories/pdf/2024/24tivzik.pdf

Scientific Journal "Socio-Economic Problems and the State"

1(30)

Jun-2024

28-Jul-2024

Ternopil Ivan Puluj National Technical University

UA

Ternopil

https://orcid.org/0000-0002-8260-5999
https://orcid.org/0000-0002-1414-3470

https://doi.org/10.33108/sepd2024.01.055

336.71

G21
O16

lending
credit portfolio
credit activity
credit strategy
credit risk
banks with foreign capital

10

55-64

55

64

It has been updated that in conditions of limited own financial resources, foreign capital plays the role of a driver of the growth of the entrepreneurial sector and an important source of meeting the significant investment needs of the Ukrainian economy. Based on the analysis of the volume and structure of the credit portfolio, it was determined that during 2021-2023 credit activity lost the leading role among the active operations of banks with foreign capital in Ukraine. It was emphasized that the strengthening of the threat of additional credit risks led to a change in priorities in the work of banks in the direction of investing in securities. It was noted that the banks belonging to foreign banking groups were cautious in lending to the real sector of the economy and showed disinterest in the growth of the credit portfolio, they managed to get high profits due to the increase in the value of loans. It is substantiated that banks with foreign capital in Ukraine implemented a conservative or passive credit strategy. It is emphasized that banks with foreign capital in Ukraine may lose one of the main functions of financial intermediation - lending to business entities and citizens. It was concluded that in order to increase efficiency and ensure long-term credit relations between economic entities, it is necessary for the state to create conditions for the activation of real production, employment of the population and stimulation of banks to form a balanced structure of assets. The directions for improving the State Program for the Development of Lending to Business Entities are outlined, including: compliance with the long-term and investment nature of lending, development of appropriate socio-economic criteria for assessing the achievement of investment goals, ensuring equal competitive conditions for representative banks of various banking groups for attracting clients to the Program. Emphasis is placed on the need to avoid increasing complexity when applying a loan application for potential borrowers due to the inclusion of ESG components in it in accordance with the policy of the National Bank of Ukraine regarding the development of sustainable financing.

The authors received no direct funding for this research.

http://elartu.tntu.edu.ua/handle/lib/46151

2223-3822

Scientific Journal "Socio-Economic Problems and the State"

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Article

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