Peculiarities of Bank Lending and Means of Stabilizing Business Financial Support in Ukraine During the War

Abstract

The article emphasizes the urgency of forming and implementing a public policy for the development of bank lending, as well as improving the financial support of domestic business in wartime conditions. The purpose of the study is to conduct an analysis of the state of bank lending and determine the directions and means of stabilizing the financial support of business in Ukraine in wartime conditions. It is shown that the full-scale war caused significant negative consequences for Ukrainian business, destabilizing both the production and consumption of goods and services, exposing the resource needs of business, significantly worsening the financial and economic condition of business entities; in more than 80% of them the volume of activity decreased in 2022; a third of business representatives saw their business reduced to 20%; in more than half – by 21% or more. The article analyzes the data of the National Bank of Ukraine (for 2019–2023) on the volume and structure of bank lending in Ukraine, the structural ratios of the volume of bank lending to legal entities and individuals in Ukraine, indicators of bank lending to the national economy of Ukraine, levels of securing bank loans with reserves in Ukraine, indicators of corporate loan portfolio in Ukraine by types of economic activity in 2023. It was concluded that the implementation of the financial policy of domestic enterprises in wartime conditions, aimed at their stable and balanced development, involves the connection of such basic aspects as sources of funds formation, vision of prospects for further progress, as well as directions for realization of financial potential. For this, enterprises should form complex subsystems for the formation of financial resources of the enterprise, consisting of attracting funds from own (own capital and investments in the business, financial result from increasing the efficiency of management) and involved sources, as well as applying for the financial capabilities of the institutional and project integration of the enterprise.