The Competitive Advantages of Small Banks for Development of National Economy

Анотація

The article is aimed at researching the competitive advantages and significance of small banks for regional development of the national economy in the context of studying world experience. The role of local banks for lending to small businesses is generalized. It is proved that the combination of different in size competitive banks has a significant synergistic effect for the sustainability of not only the financial market, but the economy as a whole. The basic principles of activity and competitive advantages of the European cooperative banks are analyzed. It is determined that their implementation provides a high level of competitiveness, minimizes the consequences of bankruptcy of such banks for clients and society, allows to harmonize the priorities of private business with socio-economic development of territorial communities. The economic and regulatory factors of deterioration of the institutional structure of the banking system of Ukraine were explored. The negative consequences of sharp increase of minimum requirements to bank capital and displacement of small banks are determined. It is substantiated that artificial consolidation of the banking system worsened the financial condition of enterprises, complicated lending to small business entities. The differentiated approach to absolute capital size depending on the size and specialization of banking institutions is proposed.

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