Abstract:

The state of the country's economy largely depends on the adequate functioning of the banking system, and bank lending to economic entities is one of the factors that play an important role in the development of priority industries, ensuring economic growth and forming the country's competitiveness in the world market. The development of the banks' lending activities is the main element of a strong economic environment and will affect the assurance of the state's independence and realization of its national interests under the conditions of globalization processes. An important role in stimulating the reproduction processes in the economy is played by bank lending as the main source of providing monetary resources for current and investment activities of business entities. However, macroeconomic instability in Ukraine had a negative impact on the development of bank lending, causing a sharp decline in the creditworthiness of borrowers and a significant deterioration in the loan portfolio quality.