MODERN STATE OF CREDIT BANKING ACTIVITY IN UKRAINE

Abstract

The article is devoted to the research of the current credit activity of Ukrainian banks. Seven periods of development of credit activity of banks are covered. The scientific works of domestic economists, the main indicators of the banking system reveal the main tendencies of bank crediting for 2014–2017 are analyzed, systematized and generalized. These tendencies includes: increase in the share of credits in total assets of banks; a substantial increase in the amount of unemployed credits, the prevalence of short-term crediting, the advantage of providing credits in national currency, the growth of consumer crediting. The changes in the volume and structure of the credit portfolio of banks are analyzed. The structure of non-performing credits and ways to overcome overdue debts of banks with the help of financial literacy of the population and improvement of normative-legal legislation are characterized. Crediting to individuals and the corporate sector is investigated. The reasons for the stagnation of bank crediting in Ukraine are described. It was emphasized that banks have sufficient potential to expand their crediting activity, which will contribute to the provision of the national economy with credit resources, as well as the growth of gross domestic product and stabilization of the economy as a whole. Trends in the development of lending activities of banks in 2017 are: an increase in the share of loans in total assets of banks; a substantial increase in the amount of unemployed loans, the prevalence of short-term lending, the advantage of providing hryvnia loans, the growth of consumer lending. Such a stagnation of bank lending is due to a number of factors, among which: the slow pace of the economy’s exit from the financial crisis; a weak level of protection of the rights of creditors and borrowers and imperfect regulatory and legal regulation in the field of their protection; increase in the volume of problem loans; absence of a specialized institution for work with problem assets; shortage of long-term resources in the banking system; high interest rates on loans; providing loans to large enterprises operating in those sectors of the economy where there was the greatest decline during the economic crisis.