The Regulation of Credit Activity in Ukraine

Abstract

The article is aimed at analyzing the current status and prospects of crediting development in Ukraine. The analysis of volumes of the given credits and the attracted deposits of non-financial corporations and households, depending on the volumes of crediting, is carried out. The average probability of default of natural persons according to the results of the NBU survey on 30 largest banks is presented. Also the comparison of volumes of credits and deposits depending on terms of repayment is carried out, determining that the main share of credits falls for the term from 1 year, deposits – up to 1 year. The reasons for these discrepancies are defined. The share of non-working loans in the credit portfolios of natural persons is analyzed and it is determined that almost all foreign currency loans to households are problematic. The reasons of low quality of both the credit and the deposit portfolios of commercial banks are generalized. The directions of improvement of quality of credit portfolios are provided, that should facilitate the development of economy of the country, stimulation of small and average business, construction of habitation. Prospect for further research in this direction is to determine the conditions necessary to ensure the stable development of crediting.

Keywords

• commercial bank
• crediting
• credit portfolio
• deposit portfolio
• non-working credits