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Tendencies and prospects of consumer lending development in Ukraine

Author(s) Melnyk К. М., , ,
Category Economics
year 2014 issue Випуск №86. Частина 2
pages 19-27 index UDK 336.77: 330.567.22 (477)
DOI
Abstract The consumer lending is the most accessible type of crediting which is a stimulant factor of development of economy of Ukraine. The purpose of research is analysis of consumer lending market of Ukraine, determination of basic problems that prevent its development and ways of their solution. In the article such scientific methods are used: abstract-logical, empiric (generalization and comparison), series of dynamics and also system approach to the problems decision. Research results. During the last years in Ukraine, the process of consumer lending is on the stage of renewal. There is permanent introduction of new types of bank products and methods of their grant. The study of state and progress tendencies of bank services market in Ukraine gives grounds to assert that to the beginning of world financial crisis, high rates of increase of amount of financial institutions, cost of their assets, demand on their services were typical for it. However, a modern condition of consumer market is characterized by the negative progress trend of lending development of private persons. Reduction in lending given to the sector of farms, during 2008 – 2013 on 86 961 million UAH, caused by instability of the financial state of borrowers and high level of problem debt. Lending in foreign currency until 01.01.2012 grew with priority rates comparing to lending in national currency. Beginning from 2012 the tendency was changed on opposite. The noticeable decline of increment of decrease of credit exposure took place in foreign currency, that was predefined by the appreciation of currency of UAH to foreign currencies. For the increase of the consumer lending efficiency in Ukraine, banks are necessary to use complex methodologies of borrower solvency estimation – private person, to create regional rating agencies that would concentrate information about all potential borrowers, to form backlogs in sufficient volumes for pooling risks of troubled debt, to use in all bank institutions collective method of credit authorizing that provides more detailed control of lending.
Key words consumer loan, mortgage loan, private persons, discount rate, interest rate, troubled debt
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