{"id":14315,"date":"2020-11-20T12:00:43","date_gmt":"2020-11-20T10:00:43","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=14315"},"modified":"2020-11-20T01:45:53","modified_gmt":"2020-11-19T23:45:53","slug":"problem-credit-debt-of-ukrainian","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/problem-credit-debt-of-ukrainian\/","title":{"rendered":"Volkova N., Vinhora D. Problem Credit Debt of Ukrainian Banks: Current Status and Ways to overcome it"},"content":{"rendered":"

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JEL Classification<\/strong>: E40, G21<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-06<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Volkova Nelia<\/strong>, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-3790-3636<\/a>
\ne-mail:<\/strong> n.volkova@donnu.edu.ua<\/a><\/p>\n

Vinhora Diana<\/strong>, Master of Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine<\/p>\n

e-mail:<\/strong> vinhora.d@donnu.edu.ua<\/a><\/p>\n

 <\/p>\n

Problem Credit Debt of Ukrainian Banks: Current Status and Ways to overcome it<\/h2>\n

 <\/p>\n

Abstract. Introduction<\/strong>. The article is devoted to the study of problem about credit indebtedness of Ukrainian banks at the present stage and to identifying ways to overcome it. The article analyzes the loan portfolio of Ukrainian banks during 2014-2020. For the last five years, the banking system of Ukraine has been developing in the conditions of military conflict and permanent political and economic crisis. After the occupation of the Autonomous Republic of Crimea and certain regions of Donetsk and Luhansk, domestic commercial banks lost part of their assets that remained in the occupied territories. These events forced the National Bank of Ukraine to take measures to stabilize the credit system, which led to the withdrawal of a large number of insolvent banks from the market.<\/p>\n

Purpose.<\/strong> The purpose of the study is to analyze the current state of credit debt problem of Ukrainian banks and to identify ways to neutralize it.<\/p>\n

Results.<\/strong> Based on statistical data, the dynamics of individual assets of Ukrainian banks, characterized by the discount rate as the main deterrent to lending, certain factors influencing the emergence of problem loans in a banking institution. Statistical data on the volume of lending to banking institutions by business entities and individuals in Ukraine are presented and analyzed. Based on the analysis, the main factors of increasing creditworthiness are investigated. Based on world experience, we offer ways to overcome the problematic team of domestic banks in the rear stabilization of the credit system.<\/p>\n

Conclusions.<\/strong> The conducted research confirmed the theoretical expediency and practical significance of the analysis of the current state of credit indebtedness problem of Ukrainian banks, which allows to determine the ways of its neutralization. The assessment of some indicators of banks’ activity revealed a number of factors that negatively affect the work with problem loans, namely: reduction in the number of banks (in particular, banks with foreign capital), reduction in lending, which is directly related to rising interest rates on loans, real incomes, the devaluation of the national currency and more. Each bank must develop a set of measures applicable to a particular category of problem loans, work out algorithms for the interaction of units in the event of certain signs, options for behavior depending on the degree of effectiveness of the measures applied. Implementation of the proposed banks in practice measures to reduce bad debts will be the subject of our further study.<\/p>\n

Keywords<\/strong>: problem loan; bank; overdue debt; bank assets; interest rate on loans.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Characteristics of the preconditions for the emergence of bad debts of banks (2018). Retrieved from : http:\/\/economics-issues.com.ua [in Ukrainian].<\/li>\n
  2. Why loans in Ukraine are so expensive and how to make them cheaper (2020). Retrieved from : https:\/\/hromadske.ua\/posts\/chomu-krediti-v-ukrayini-dorogi-ta-yak-mozhna-yih-zdesheviti [in Ukrainian].<\/li>\n
  3. Melnyk, O. Problem loans : analysis of the quality of the loan portfolio of Ukrainian banks (2019). Naukovyy pohlyad: ekonomika ta upravlinnya<\/em>,<\/em>1 (63), 200-211 [in Ukrainian].<\/li>\n
  4. Oliynyk, V. Non-performing loans and their impact on the solvency of Ukrainian banks (2017). Hroshi, finansy i kredyt<\/em>, <\/em>6, 300\u2013307 [in Ukrainian].<\/li>\n
  5. Mishchenko, V. I., Mishchenko, S. V. & Neklyudova, M. (2017). Management of problem loans in terms of cyclical economic development.<\/em> Naukovyy visnyk Mizhnarodnoho humanitarnoho univer\u00acsytetu. Seriya: Ekonomika i menedzhment, <\/em>26(2), 56\u201361 [in Ukrainian].1.\u00a0\u00a0\u00a0\u00a0 Volkova, N. I. & Kulbida, V. A. (2018). Features of bank lending to enterprises at the present stage. Finansy. Oblik. Banky. Nauk. zhurnal<\/em>.<\/em> 1 (24), 113-122 [in Ukrainian].<\/li>\n
  6. Official site of the National Bank of Ukraine (2020). Retrieved from : https : \/\/bank.gov.ua. [in Ukrainian].<\/li>\n
  7. Yaremenko, O. R. Problem loans of banks : definition of essence and tendencies of their development in the conditions of banking crisis. (2017). Hroshi, finansy i kredyt<\/em>.<\/em> \u2116 10, 900-905 [in Ukrainian].<\/li>\n
  8. 4.\u00a0\u00a0\u00a0\u00a0 Krupka, M. I. & \u00a0Baran, O. B. (2016). Economic essence of problem credit in banking activity. Naukovyy visnyk NLTU Ukrayiny<\/em>, 26.2, 209-217 [in Ukrainian].<\/li>\n
  9. Syrchyn, O. L. (2014). Formation and use of reserves for credit indebtedness of commercial banks. Visnyk sotsial\u02b9no-ekonomichnykh doslidzhen\u02b9<\/em>,<\/em> 3, 265-270 [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 15 October 2020<\/p>\n

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    Volkova N., Vinhora D. (2020). Problem Credit Debt of Ukrainian Banks: Current Status and Ways to overcome it. Modern Economics<\/em>, 23(2020), 37-43. DOI: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-06.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: E40, G21 DOI: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-06 [\/vc_column_text][vc_column_text] Volkova Nelia, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine ORCID ID: 0000-0003-3790-3636 e-mail: n.volkova@donnu.edu.ua Vinhora Diana, Master of Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine e-mail: vinhora.d@donnu.edu.ua   Problem Credit
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