nnovative approaches to the development of bank lending to small and medium-sized enterprises based on the municipal guarantee mechanism

Анотація

The article examines the mechanism of municipal guarantees, which is a potentially effective tool for expanding SMEs’ access to bank lending, although in Ukraine it is still in the stage of formation and does not play a systemic role in business financing. It is established that its practical application is mainly limited to infrastructure and municipal projects, while SME lending remains fragmented. The key barriers to the functioning of this mechanism are identified, including institutional and legal constraints, the complexity of administrative procedures, insufficient interaction between local self-government bodies and the banking sector, a low level of trust of banks in local guarantees, as well as limited financial resources of territorial communities. The article substantiates the conceptual foundations of the innovative development of bank lending to SMEs based on the municipal guarantee mechanism as an integrated tool for sharing credit risk between banks and local self-government bodies, which allows increasing the accessibility of financial resources for business. The barriers to the development of municipal guarantees are identified through their systematization into institutional-legal, financial-economic, organizational, and market groups, which, unlike existing approaches, provides a comprehensive understanding of the reasons for the limited use of this instrument in Ukraine.

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