Rehabilitation of the Banking System as a Key Factor in the Resumption of Corporate Crediting in Ukraine

• Published in: Problemi Ekonomiki
• Main Author: Hladkykh Dmytro M.
• Format: Article
• Language: English
• Published: PH "INZHEK" 2017-09-01
• Subjects: corporate credits; credit portfolio; banks; capital; currency; inflation
• Online Access: http://www.problecon.com/export_pdf/problems-of-economy-2017-3_0-pages-248_253.pdf
• ISSN: 2222-0712; 2311-1186

The aim of the article is to study the factors of negative dynamics of corporate crediting in Ukraine and justify proposals for further actions of the state in the direction of activating corporate crediting. The actions of the state in the field of activation of corporate crediting in Ukraine should include the steps mentioned below. As part of the overall rehabilitation and recovery of the economy – actions aimed at de-shadowization of the economy; restoration of foreign exchange earnings from exports; stimulation of timely return of the currency of exporters to the country. Within the framework of resolution of the bank’s non-performing corporate credit portfolio – establishment of a state company for the management of either distressed assets or a single remedial bank that is to accumulate non-performing credits. Within the framework of rehabilitation and post-crisis recovery of the banking system — completion of the procedure for removing problem banks from the market; bringing the capital adequacy ratio of the banking system in line with the requirements of Basel III; creation of a mechanism for structural refinancing, introduction of new instruments to stimulate bank crediting of enterprises in the real economy, etc. Within the framework of minimizing the current high level of inflation, which hinders the activation of corporate crediting – gradual decrease in the discount rate; ensuring a positive level of NBU interest rates relative to the forecasted core inflation; further accumulation of international reserves, etc. Within the framework of minimizing the budget deficit and limiting the issue of government bonds and deposit certificates of the NBU as instruments that divert banks’ credit resources from corporate lending – reducing the state budget deficit; decrease in banks' demand for government securities by reducing their profitability.