Uman National University | today: 06/19/2025
| Author(s) |
Vlasyuk S.A., , , Uman National University of Horticulture Полишвайко С. С., , , |
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|---|---|---|---|
| Category | Economics | ||
| year | 2025 | issue | Випуск 106 Частина 2 |
| pages | 550-563 | index UDK | 336.717:061.2 | DOI | 10.32782/2415-8240-2025-106-2-550-563 (Link) |
| Abstract | Relevance. In this case a comparative analysis of the mechanisms and instruments for the credit unions development in Lithuania and Ukraine is not only scientifically justified, but also practically necessary for the formation of a modern strategy for improving the efficiency and sustainability of the Ukrainian financial market. Research Objective. The purpose of the study is to identify effective mechanisms and instruments for the development of credit unions based on the Lithuanian experience, as well as to formulate recommendations for their adaptation within the current conditions of the Ukrainian financial system. Research Methods. It was used a comparative analysis of the legal regulation, structure, institutional framework, and financial indicators of credit unions in Lithuania in this study. An institutional approach was used to examine the role of government bodies, supervisory institutions, and credit union associations in ensuring transparency and stability in the sector. Statistical data analysis was applied to assess the dynamics of quantitative indicators of credit unions. Results. The study examined the main stages of the development of Lithuania’s credit union sector, which began in 1995 and entered a reform phase in 2016. The first stage of the reform concluded in 2022 with the consolidation of credit unions into central credit unions. The second stage focuses on strengthening the sector by introducing new regulatory requirements for the operations of Lithuanian credit unions. The success of the reform is evidenced by the analysis of key indicators presented in the study. Furthermore, the analysis of Lithuania’s experience and Act On Credit Unions in Ukraine shows that Ukraine is partially following the Lithuanian path. In particular, amendments to the Law have expanded the list of entities eligible for credit union membership (e.g., farming enterprises, small businesses), improved capital structure requirements, and enhanced credit union governance systems. New requirements for corporate governance and internal control systems are being considered, along with the simplification of licensing procedures. Conclusion. The conducted research confirms the similarities between the credit union markets in Lithuania and Ukraine, as well as the significant potential of credit unions as an important source of financing for farming enterprises and small businesses in the regions. Their key advantages are client orientation, flexible lending conditions, and understanding of small business specifics which make them an attractive alternative to traditional banks. Leveraging international experience can ensure meaningful progress in the development of credit unions and serve as a catalyst for strengthening the financial resilience of small and medium-sized enterprises | ||
| Key words | credit union, financial instruments, Lithuania, Ukraine, financial system, regulation, international experience | ||