{"id":20883,"date":"2025-12-03T20:23:10","date_gmt":"2025-12-03T18:23:10","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=20883"},"modified":"2025-12-03T21:41:39","modified_gmt":"2025-12-03T19:41:39","slug":"development-and-features-of-bank","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/development-and-features-of-bank\/","title":{"rendered":"Burkovska A., Nesterchuk T., Pastushenko V. Development and Features of Bank Lending to Territorial Communities in Ukraine"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> H 72, H 74, G 21, R 51.<\/span><\/i><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V53(2025)-05<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Burkovska Alla,<\/b> Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n

ORCID ID:<\/strong> 0000-0003-4158-1721<\/span><\/a>
\ne-mail: <\/strong>burkovskaya@mnau.edu.ua<\/span><\/a><\/p>\n

Nesterchuk Tetyana, <\/b>Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolaiv, Ukraine<\/span><\/p>\n

ORCID ID:<\/strong> 0009-0001-6140-774\u0425<\/span><\/a>
\ne-mail: <\/strong>tanjanesterthuk@gmail.com<\/span><\/a><\/p>\n

Pastushenko Vitalii, <\/b>Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Ukraine<\/span><\/p>\n

ORCID ID:<\/strong> 0009-0002-8711-0060<\/span><\/a>
\ne-mail: <\/strong>pastusenkovitali102@gmail.com<\/span><\/a><\/p>\n

Development and Features of Bank Lending to Territorial Communities in Ukraine<\/b><\/h2>\n

Abstract. Introduction<\/i><\/b>. <\/span><\/i>After the start of full-scale armed conflict, communities faced new challenges, such as the destruction of energy, social, and municipal infrastructure. This led to the need to raise additional funds to address the consequences. One solution was to seek foreign aid and bank loans. Ukrainian state banks became the leading organizations in providing loans for community needs. In addition to reconstruction, these funds can be used for social and humanitarian projects. Until 2024, however, only urban communities had access to these funds, limiting the opportunities for rural and village communities to attract funds. However, the adoption of the relevant law changed this, creating a positive trend for both banks and communities. This decision not only opens an additional opportunity for banks to earn money but also allows them to gain social points in the eyes of society. This type of cooperation benefits both parties and has great potential, as will be discussed in this article.<\/span><\/i><\/p>\n

Purpose<\/i><\/b>. This article aims to explore the potential for collaboration between local communities and banking institutions in Ukraine to finance socio-economic development. To achieve this goal, we will reveal the nature of the interaction between communities and the banking sector, identify its primary forms and mechanisms, and outline the key advantages of such a partnership.<\/span><\/i><\/p>\n

Results<\/i><\/b>. After the adoption of the law expanding lending to communities, the study found that the share of rural and settlement communities in the lending structure increased by 16%. The main lenders are the Ukrainian state-owned banks Oschadbank and Ukreximbank, which are supervised by the Ministry of Finance of Ukraine. Since 2018, these banks have enabled communities to implement over 1,000 projects. In 2024, they provided UAH 3,393.99 million for local government project implementation. According to the PESTEL analysis, prospects for cooperation include socioeconomic development for communities, accelerated project decision-making, new sources of profit for banking institutions, and increased public trust in banking institutions.<\/span><\/i><\/p>\n

Conclusions<\/b>. Credit relations between communities and banks are important for expanding opportunities to attract additional resources. Currently, Ukrainian banks are leaders in providing credit services to local self-government bodies, which provides a reliable foundation for further developing these relations, which improve every year. Involving commercial banks in this process opens new opportunities for implementing strategically important initiatives.<\/span><\/i><\/p>\n

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

    \n
  1. Decentralization. (2025). <\/span>Territorial communities<\/span><\/i>. <\/span>https:\/\/decentralization.ua\/newgromada<\/span>.\u00a0<\/span><\/li>\n
  2. Augustyn, R. & Demkiv, I. (2023). Development Policy Toolkit and Strengthening the Competitiveness of the Economy of Territorial Communities. <\/span>Modeling the Development of Economic Systems<\/span><\/i>, (2), 28\u201333. <\/span>https:\/\/doi.org\/10.31891\/mdes\/2023-8-4<\/span>.<\/span><\/li>\n
  3. Soroka, V. (2025). System model of financial mechanism for the development of territorial communities.\u00a0<\/span>Economic\u00a0Space<\/span><\/i>,\u00a0202,\u00a0253\u2013\u00a0257.\u00a0<\/span>https:\/\/doi.org\/10.30838\/EP.202.253-257<\/span>.<\/span><\/li>\n
  4. Shchur, R., Pryphan, I., & Urbanovich, M. (2025). Research on the effectiveness of using financial instruments for the restoration and development of territorial communities of Ukraine. <\/span>Problems and prospects of economics and management<\/span><\/i>, (41), 337\u2013350. <\/span>https:\/\/doi.org\/10.25140\/2411-5215-2025-1(41)-337-350<\/span>.<\/span><\/li>\n
  5. Panchyshyn, B. (2024). Regulatory and legal support for financing the development of territorial communities. <\/span>Scientific notes of the V.I. Vernadsky TNU<\/span><\/i>, 35(74), 146\u2013150. <\/span>https:\/\/doi.org\/10.32782\/TNU-2663-6468\/2024.1\/25<\/span>.<\/span><\/li>\n
  6. Bak, N. (2022). Municipal credit as a method of financing sustainable development of territories of Ukraine: Answers to modern challenges. Yuriy Fedkovych Chernivtsi National University.\u00a0<\/span>https:\/\/archer.chnu.edu.ua\/bitstream\/handle\/123456789\/5029\/\u0411\u0430\u043a_\u0442\u0435\u0437\u044b-\u043a\u043e\u043c\u0443\u043d\u0430\u043b\u044c\u043d\u044b\u0439%20\u043a\u0440\u0435\u0434\u0438\u0442.pdf?sequence=2&amp;isAllowed=y<\/span>.<\/span><\/li>\n
  7. Bychkov, S., & Soroka, V. (2024). Institutional provision of financing the development of territorial communities in the conditions of crisis. <\/span>Economic synergy<\/span><\/i>, (1), 136\u2013153. <\/span>https:\/\/doi.org\/10.53920\/ES-2024-1-10<\/span>.<\/span><\/li>\n
  8. Burkovska,\u00a0A., & Nesterchuk,\u00a0T. (2025). Grant Funding as a Tool for the Development of Territorial\u00a0Communities.\u00a0<\/span>Modern\u00a0Economics<\/span><\/i>,\u00a0<\/span>51<\/span><\/i>(1),\u00a029\u2013\u00a037.\u00a0<\/span>https:\/\/doi.org\/10.31521\/modecon.v51(2025)-03<\/span>.<\/span><\/li>\n
  9. Decentralization. (2025, March 24).<\/span> Analysis of the implementation of local budgets for 2024<\/span><\/i>. <\/span>https:\/\/decentralization.ua\/news\/19387<\/span>.<\/span><\/li>\n
  10. Verkhovna Rada of Ukraine. (2023<\/span>). On amendments to the Budget Code of Ukraine to ensure support for the state’s defense capability and the development of the defense-industrial complex of Ukraine<\/span><\/i>. \u2116\u00a03428-IX. <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/3428-20#Text<\/span>.<\/span><\/li>\n
  11. Verkhovna Rada of Ukraine (2025) <\/span>Budget Code of Ukraine<\/span><\/i>. \u2116 2456-VI <\/span>https:\/\/zakon.rada.gov.ua\/laws\/show\/2456-17#Text<\/span>.<\/span><\/li>\n
  12. Ministry of Finance of Ukraine. (2025). <\/span>Local debt and local guaranteed debt<\/span><\/i>. <\/span>https:\/\/mof.gov.ua\/uk\/miscevij-borg-ta-miscevij-garantovanij-borg<\/span>.<\/span><\/li>\n
  13. UKRGASBANK. <\/span>Lending to Municipalities.<\/span><\/i> https:\/\/surl.lu\/ltxrvj<\/span>\u00a0<\/span><\/li>\n
  14. Decentralization.\u00a0(2024, May 29). <\/span>Local borrowing: what opportunities does the use of credit resources open up for communities<\/span><\/i>. <\/span>https:\/\/decentralization.ua\/news\/18149<\/span>.<\/span><\/i><\/li>\n
  15. Oschadbank. (2023, November 14<\/span><\/i>). Oschad issued the first loan to a municipality since the start of the full-scale war. <\/span>https:\/\/www.oschadbank.ua\/news\/osad-vidav-persij-kredit-municipalitetu-z-pocatku-povnomasstabnoi-vijni<\/span>.\u00a0<\/span><\/i><\/li>\n
  16. Ukreximbank. (2024, July 3)<\/span>. Ukreximbank provided the first loan in Ukraine to a village community for the construction of a pedestrian bridge. <\/span><\/i>https:\/\/www.eximb.com\/ua\/bank\/press\/novyny-banku\/ukreksimbank-nadavi-kredit-selishhnij-gromadi.html#:~:text=03\/07\/2024<\/span>.<\/span><\/li>\n
  17. Ukreximbank. (2025, July 29).<\/span> Strong communities – strong Ukraine: dialogue for recovery <\/span><\/i>https:\/\/www.eximb.com\/ua\/bank\/press\/novyny-banku\/silni-gromadi-silna-ukraina-dialog-zaradi-vidnovlennya.html<\/span><\/i>.<\/span><\/i><\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: <\/strong>10\u00a0October 2025<\/span><\/p>\n

    \"burkovska.pdf\"<\/div>
    burkovska.pdf<\/div><\/div>
    <\/div>
    <\/div>
    Size: <\/span>1,35<\/span><\/div>
    Download Now!<\/a><\/span>2<\/span> Downloads<\/span><\/span><\/div><\/div>
    <\/div>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n
    \n

    How to quote this article?<\/p>\n<\/td>\n<\/tr>\n

    Burkovska A., Nesterchuk T., Pastushenko V. (2025). Development and Features of Bank Lending to Territorial Communities in Ukraine. Modern Economics, 53(2025), 33-39. DOI: https:\/\/doi.org\/10.31521\/modecon.V53(2025)-05.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1657628632157{margin-top: 10px !important;}”]<< \u041f\u043e\u0432\u0435\u0440\u043d\u0443\u0442\u0438\u0441\u044f \u0434\u043e \u0437\u043c\u0456\u0441\u0442\u0443<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: H 72, H 74, G 21, R 51. DOI: https:\/\/doi.org\/10.31521\/modecon.V53(2025)-05 [\/vc_column_text][vc_column_text]Burkovska Alla, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine ORCID ID: 0000-0003-4158-1721 e-mail: burkovskaya@mnau.edu.ua Nesterchuk Tetyana, Applicant of Higher Education, Accounting and Finance Faculty, Mykolayiv National Agrarian University, Mykolaiv,
    Read more<\/a><\/p>\n","protected":false},"author":11,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[242],"class_list":["post-20883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-53-2025","tag-53-2025"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/20883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=20883"}],"version-history":[{"count":3,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/20883\/revisions"}],"predecessor-version":[{"id":21080,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/20883\/revisions\/21080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=20883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=20883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=20883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}