PROSPECTS FOR THE DEVELOPMENT OF BANKING CREDIT TO ENTERPRISES IN UKRAINE

Abstract

The scientific study analysed bank lending to enterprises in Ukraine during martial law. The goal is to analyse bank lending to enterprise activities, consider the shortcomings and problems of bank lending under martial law. In accordance with the goal, we outlined the following tasks: to analyse the dynamics of bank lending to enterprises in Ukraine during the war and identify the main factors that influence this process; to identify key problems and identify shortcomings that significantly affect the processes of bank lending to enterprises under martial law; to develop recommendations for improving the credit policy of banks to increase the efficiency of lending to enterprises in the future. Promising areas that will affect the development of bank lending to enterprises should be considered: carrying out a correction of the monetary regime to increase its flexibility and compliance with the current macroeconomic conditions that have arisen in the state during the period of military aggression, which may include targeting inflation, exchange rate and GDP; introduction of active and strategically oriented state intervention in the banking sector, which includes the creation of mechanisms to support lending to enterprises under martial law; development and implementation of effective national and regional programs for lending to enterprises according to the size of the authorized capital, as well as the creation of programs for reimbursement or subsidization of interest rates on loans; improvement of the financial and credit policy of banks, which includes tools for reducing interest rates on loans, simplifying the conditions for securing loans and introducing new financial instruments; management of ESG risks (environmental, social and governance) in Ukrainian banks and their further integration into their business processes. The following article combines theoretical developments of the methodology for providing loans with their practical use to improve bank lending to enterprises in the context of sustainable development of the state.