Open AccessCURRENT TRENDS IN THE BANKING CREDIT MARKET OF UKRAINE
Author(s) -
L. Avramchuk,
Oleksii Muravskyi
Publication year - 2021
Publication title -
interconf
Language(s) - English
Resource type - Journals
ISSN - 2709-4685
DOI - 10.51582/interconf.19-20.09.2021.004
Subject(s) - currency , loan , financial system , business , interest rate , creditor , order (exchange) , term loan , monetary economics , non performing loan , finance , economics , non conforming loan , debt
In recent years, the banking sector of Ukraine has witnessed low lending standards and insufficient protection of creditors' rights. In addition, there were two crises in the country and, as a result, borrowers were unable to repay funds in time. At the same time the quality of loan portfolios deteriorated, therefore more than 50% of all loans became "problematic". Due to the increase in interest rates, most borrowers began to take loans for up to 3 years and in the national currency, because they are less risky. According to statistics, only about 25% of all loans are long-term. In order to encourage borrowers to take long-term loans and borrowings in foreign currency, banking institutions have reduced interest rates on these types of loans, but these actions have given only a slight increase in such loans.