Melnyk L., PhD (Economics), Associate Professor, The Head of the Department of Finance and Economics of Environmental Management, National University of Water Management and Environmental Engineering, Rivne, Ukraine

ORCID ID: 0000-0003-3628-9160
e-mail: l.v.melnyk@nuwm.edu.ua

System Risk Management of Resource Potential of Mortgage Lending in the Agrarian Sphere

Abstract. Introduction. Agricultural production is a very complex system of economic relations, the functioning of which is inherently associated with emerging risks.

Purpose. The purpose of this work is to systematize the main risks of the mortgage lending system in the agricultural sector and to develop measures to minimize their impact on the financial and economic activity of agricultural enterprises.

Results. The article highlights the risks arising from the process of mortgage lending to agricultural producers. A model of the systemic risk study of the resource potential of the agricultural mortgage lending has been constructed. The risks of the agro-business mortgage lending system operating at the macroeconomic level have been identified: information risk; inflation risk; currency risks; institutional risks; the risk of monopolization. Separate internal risks of mortgage relations in the agricultural sector, depending on the entity: risks of the borrower; the risks of the lender; risks of intermediaries; risks of investors. The risks that each of the economic entities face in the mortgage lending to agribusiness have been systematized. The relationship between the risks of the mortgage crediting of the agricultural sector with the components of the resource potential: investment, mortgage, financial, regulatory and institutional has been investigated. The priority tasks at the stage of implementation and functioning of the free market of agricultural land have been defined: ensuring national interests in the development of agriculture; conservation of fertile land as a national wealth of the state; prevention of risk of food crisis in the country; orientation on domestic farmers and private peasant farms and protection of their economic interests. The threat to the food security of the state is the possibility of free sale of agricultural land to non-residents.

Conclusions. An algorithmic model of choosing a risk management method is presented, which is represented by a set of tools and organizational measures, depending on the target direction of risk management and the goal the lender is eager to achieve.

Keywords: mortgage lending risks; resource potential; land-mortgage lending; agrarian production.

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