The Role of Bank Lending in the Development of Ukraine’s Economy
Kremen V. M., Kremen O. I., Huliaieva L. P.

Kremen, Viktoriia M., Kremen, Olha I., and Huliaieva, Liudmyla P. (2020) “The Role of Bank Lending in the Development of Ukraine’s Economy.” The Problems of Economy 3:176–183.
https://doi.org/10.32983/2222-0712-2020-3-176-183

Section: Finance and banking

UDC 658.153(477)

Abstract:
The purpose of the article is to analyze the situation with bank lending to the real sector and its impact on the development of Ukraine’s economy. In order to effect this purpose, the following tasks have been fulfilled: to analyze the dynamics of the total bank lending to the real sector, to analyze the structure of bank lending to non-financial corporations by loan terms and by currency; to determine the volume of loans granted to non-financial corporations in order to buy, build and reconstruct real estate property. To carry out in-depth assessment of the impact made by bank lending to the real sector on economic development, a correlation and regression analysis has been made, revealing that the increase in bank lending to non-financial corporations leads to the growth of the GDP, industrial output (in goods and services), exports, capital investment and average monthly salary and wages. It also reduces the amount of man-power employed, which may serve as the evidence of production intensification and automation caused by using loan proceeds. The polynomial function most appropriately describes the relationship between the volume of bank lending to non-financial corporations and GDP, exports and employment in 2005-2019, and the exponential function most adequately describes the relationship between the volume of bank lending to non-financial corporations and capital investment and the average monthly salary and wages.

Keywords: bank lending, correlation and regression analysis, loans, non-financial corporations.

Fig.: 4. Tabl.: 1. Bibl.: 13.

Kremen Viktoriia M. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Finance and Financial and Economic Security, Kyiv National University of Technologies and Design (2 Nemyrovycha-Danchenka Str., Kyiv, 01011, Ukraine)
Email: kremen.vm@knutd.edu.ua
Kremen Olha I. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance and Financial and Economic Security, Kyiv National University of Technologies and Design (2 Nemyrovycha-Danchenka Str., Kyiv, 01011, Ukraine)
Email: kremen_olga@ukr.net
Huliaieva Liudmyla P. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance, Academy of Labour, Social Relations and Tourism (3a Kiltseva Doroha Str., Kyiv, 03187, Ukraine)
Email: finsectoreu@socosvita.kiev.ua

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