Visnyk LNAU: Economics of AIC 2021 №28: 96-101
CONDITIONS AND PROSPECTS OF COMMERCIAL BANK DEVELOPMENT UNDER THE COVID-19 PANDEMIC
Ahres O., Candidate of Economics
ORCID ID: 0000-0003-3398-0933
Tomashevskyi Yu., Candidate of Economics
ORCID ID: 0000-0003-4039-8271
Lviv National Agrarian University
https://doi.org/10.31734/economics2021.28.096
Annotation
The essence and significance of the banking system in the national economy are studied. The tendencies of the banking sector in the conditions of COVID-19 are analyzed. In particular, the dynamics of change in the number of banks in Ukraine showed their significant decrease. It is justified that liquidation of a number of troubled banks has a positive effect on the transparency of the banking system on one hand, and leads to deterioration of the competitive environment and conditions of banking services due to a significant reduction in the banking sector on the other hand. The analysis of the total assets of the banking sector of Ukraine enabled assessing the degree of solvency and liquidity of the sector, the quality of loan portfolios of banks in the domestic sector and the profitability of their work. The state of bank lending is studied. The role of internal funding in modern conditions is outlined. It is determined that the main sources of funding in the banking sector are represented by the funds on current, deposit and current accounts of customers, borrowing from international and domestic capital markets, interbank loans, etc., and the vast majority of borrowed resources are customer funds. The impact of the pandemic on the share of non-performing loans in banks' portfolios has been determined. It is substantiated that lending to the real sector of the economy will remain a priority area of development. Banks should focus on government-sponsored lending programs to support business and the public, improving digital channels to provide customers with accessible bank access, and improving existing and developing new user-friendly mobile products and services. Recommendations for minimizing the negative consequences of COVID-19 for banking activities and general improving the banking sector have been developed.Key words
banking sector, bank, crediting, bank assets, funding
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