THE IMPACT OF THE COVID-19 PANDEMIC ON THE BANK'S LENDING AND INVESTMENT ACTIVITY IN UKRAINE

Анотація

The paper deals with the theoretical, regulatory framework for the implementation of lending and investment activities of banks in Ukraine, in particular in the economic downturn caused by the COVID-19 pandemic. The purpose of the article is to reveal the features of bank lending and investing in 2019-2021 and to identify the impact of the COVID-19 pandemic on the implementation of lending and investment activities of banks in Ukraine. The authors' approach to determining the essence of lending and investment activities of banks is substantiated. An assessment of banks' lending and investment activities in 2019-2021 has shown, that 60% of banks' loan and investment portfolios are formed from loans and 40% from investments. The main share of banks credit agreements volume is occupied by loans granted to economic entities; the bank portfolios of securities are formed mainly of profitable and low-risk government bonds. Unprecedented restrictive measures imposed to overcome the pandemic have had an impact on the activities of banking institutions, including reduced income of potential borrowers and their ability to service debt, as well as the problems for banks that have not introduced remote customer service. Analysis of the dynamics and structure of the credit and investment portfolio of Ukrainian banks, investments in investment securities, and long-term investments made it possible to identify the main trends in lending and investment activities of banks in Ukraine. Potential directions of regulatory policy implementation on the banking sector in the context of overcoming the negative consequences of the pandemic should be aimed at creating equal and transparent rules of the game between traditional and new financial service providers. The authors focus the attention on opportunities for the development of lending and investment activities of banks that emerged in the financial market of Ukraine during 2020-2021. Most of these capabilities involve providing simple, intuitive, personalized services across digital platforms with an appropriate level of cybersecurity.

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