WAYS OF IMPROVING THE CREDIT ACTIVITY OF THE BANKS OF UKRAINE

Abstract

The article is devoted to identifying the reasons for the complexity of banks' lending activities and the containment of bank lending in Ukraine at the present stage. Lending activity is considered as the main activity of banks to place borrowed funds, because the income from this activity is the main source of income for the bank. The functioning of effective lending activities promotes the emergence of new enterprises, increases the number of jobs, improves the socio-economic development of the state, guarantees economic growth and stability. The article provides a comprehensive analysis of the state of credit activity of domestic banks for the period 2013-2020. The structure of assets and loan portfolio of banks is analyzed and graphically depicted. The main problems that arose in the banking system of Ukraine during lending to both businesses and individuals are listed. The braking factors of the development of bank lending, namely the lack of reliability of borrowers, associated with both objective macroeconomic circumstances and the traditionally unsatisfactory payment discipline of businesses and individuals; high level of interest rates due to the tight monetary policy of the NBU; volatile and slow dynamics of economic development caused, inter alia, by the tight monetary policy of the NBU; maintaining a significant share of the shadow sector of the economy; slow pace of recovery of bank capitalization and others. Based on the systematization of problems and key obstacles to bank lending in Ukraine, which have worsened under the imposed quarantine restrictions, the priorities for intensifying the relevant activities are: improving the regulatory requirements of the NBU, which will enhance lending to borrowers; creation of more favorable conditions for the implementation of bank lending, including measures aimed at reducing the cost of credit resources, stimulating the development of basic sectors of the economy, its de-shadowing, restoration of capitalization of the banking system; measures aimed at improving the structure of borrowed funds and the loan portfolio of the banking system.