Main trends and prospects for the growth of bank lending as a mechanism for financial support and ensuring sustainable development of agricultural enterprises in Ukraine

Abstract

The relevance of the article is due to the growing need to ensure the availability of credit resources for farmers, improve lending conditions, increase the efficiency of financial and credit institutions lending to enterprises in the agricultural sector, and forms of their support. The purpose of the article is to identify bottlenecks in the organization of credit relations between banking institutions and borrowers based on economic and statistical analysis data to formulate proposals to improve individual areas of commercial banks in the field of agricultural lending. The object of the study is agricultural enterprises and banking institutions providing loans to the agricultural sector of the economy. The methodological basis of the article consists of general scientific methods and techniques: dialectical logic, comparison, grouping, abstraction, modeling, system and economic-statistical analysis, as well as the principles of openness and accuracy of the presented information and research results. The article analyzes the state and trends of lending to agricultural enterprises in domestic banking practice. The conditions of agricultural enterprises' activities that determine the need for their financial support are characterized. The specifics of credit relations between banks and agricultural producers in the conditions of economic and political instability in Ukraine are considered. Problems in the credit practice of banking institutions are identified. The nature of the risks that banking institutions face when working with their clients is determined. Based on the analysis of bank agricultural lending, the main factors that negatively affect the development of creditor-borrower relations in the conditions of the financial crisis are formulated. A package of measures to improve the availability of credit in the context of the effectiveness of commercial banks servicing agricultural enterprises is proposed. The scientific novelty of the study consists in the specific substantiation of recommendations for solving a number of problems of lending to agricultural enterprises in a difficult period for the economy. The practical significance of the article is represented by ideas that can be used by government agencies in developing mechanisms for interaction between the agricultural and banking sectors; by banks - in developing and implementing credit policy in terms of increasing agricultural lending; by the NBU - to improve the structure of the banking system in the context of strengthening its active role in lending to the economy; by agricultural enterprises - in developing and implementing programs for renewing their lost working capital and optimizing the sources of their formation by strengthening the role of credit in them.