REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

 FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

 PUBLISHER

Liburkina L. M.

 SITE SECTIONS

Main page

Editorial staff

Editorial policy

Annotated catalogue (2011)

Annotated catalogue (2012)

Annotated catalogue (2013)

Annotated catalogue (2014)

Annotated catalogue (2015)

Annotated catalogue (2016)

Annotated catalogue (2017)

Annotated catalogue (2018)

Annotated catalogue (2019)

Annotated catalogue (2020)

Annotated catalogue (2021)

Annotated catalogue (2022)

Annotated catalogue (2023)

Annotated catalogue (2024)

Thematic sections of the journal

Proceedings of scientific conferences

Features of the Relationship between Bank Lending to Industry and Financial Sustainability of Banks
Herasymenko A. V.

Herasymenko, Alina V. (2022) “Features of the Relationship between Bank Lending to Industry and Financial Sustainability of Banks.” Business Inform 3:93–101.
https://doi.org/10.32983/2222-4459-2022-3-93-101

Section: Finance, Money Circulation and Credit

UDC 336:64

Abstract:
The article is aimed at highlighting the peculiarities concerning the impact of bank lending to industry on the financial sustainability of banks in accordance with the current tendencies in the development of the national banking sector. The article considers the current situation in the banking sector, analyzes the dynamics of the main indicators of financial sustainability of banks. It is found out, which indicators of financial sustainability of banks constituted, amongst others, the basis of the indicators of lending to industry. It is analyzed how the state of lending to industry was reflected in certain indicators of financial sustainability of banks. In particular, the dynamics of industrial shares was compared and analyzed by sectors, in terms of the gross value added of gross domestic product and in terms of the bank loan portfolio of non-financial corporations, allowing to formulate conclusions on the efficiency of the use of bank credit resources by industry and the investment return on financial resources. The analysis on the equilibrium of financial flows of banks, as well as their ability to maintain their liquidity, being important indicators of financial sustainability of banks, was carried out using the indicator of the ratio of credit and deposit funds separately for industrial enterprises, non-financial corporations, and for the system in general. The nature of the impact of inoperable credit debt of industrial enterprises on the financial sustainability of banks is analyzed. The article discloses the main current tendencies of bank lending to corporate clients, including industrial enterprises, analyzes their impact on ensuring the proper level of financial sustainability of banks. The article proposes an author’s vision as to how the credit relations of banks and industrial enterprises should change, taking into account the experience of their cooperation in previous years and taking into account the modern realities of the national economy.

Keywords: financial sustainability of banks, indicators of financial sustainability of banks, industrial enterprises, bank lending to industrial enterprises.

Fig.: 4. Tabl.: 2. Bibl.: 17.

Herasymenko Alina V. – Postgraduate Student, Department of Finance and Banking, University of Banking (1 Andrіivska Str., Kyiv, 04070, Ukraine)
Email: [email protected]

List of references in article

Dziubliuk, O. V., and Makhalova, O. L. “Banky i pidpryiemstva: kredytni aspekty vzaiemodii v umovakh transformatsii ekonomiky“ [Banks and Enterprises: Credit Aspects of Interaction in the Conditions of Economic Transformation]. Ternopil : Vektor, 2008. http://dspace.wunu.edu.ua/bitstream/316497/526/1/kredytni_aspekty_vzaemodii.pdf
Naumenkova, C. V., and Mishchenko, S. V. Rozvytok finansovoho sektoru Ukrainy v umovakh formuvannia novoi finansovoi arkhitektury [Development of the Financial Sector of Ukraine in the Conditions of Formation of a New Financial Architecture]. Kyiv: UBS, TsNDNBU, 2009.
Dziubliuk, O. V., and Mykhailiuk, R. V. “Finansova stiikist bankiv yak osnova efektyvnoho funktsionuvannia kredytnoi systemy“ [Financial Stability of Banks as a Basis for the Effective Functioning of the Credit System]. Ternopil, 2009. http://dspace.wunu.edu.ua/bitstream/316497/525/1/finansova_stiyk_bankiv_dzublyck.pdf
“Nahliadova statystyka Natsionalnoho banku Ukrainy“ [Supervisory Statistics of the National Bank of Ukraine]. https://bank.gov.ua/ua/statistic/supervision-statist
“Pokazateli finansovoy ustoychivosti. Rukovodstvo po sostavleniyu“ [Indicators of Financial Stability. Compilation Guide]. Washington DC, USA : Mezhdunarodnyy Valyutnyy Fond, 2007. https://www.imf.org/external/pubs/ft/fsi/guide/2006/pdf/rus/guide.pdf
Podatkova sluzhba Ukrainy. http://vl.sfs.gov.ua/media-ark/news-ark/print-257001.html
Derzhavna sluzhba statystyky Ukrainy. http://www.ukrstat.gov.ua/
Melnyk, L. V. “Peredumovy formuvannia finansovoho potentsialu ipotechnoho kredytuvannia ahrarnoi sfery“ [Prerequisites for the Formation of the Financial Potential of the Mortgage Lending of the Agrarian Sphere]. Skhidna Yevropa: ekonomika, biznes ta upravlinnia. 2019. http://www.easterneurope-ebm.in.ua/journal/22_2019/31.pdf
De Vuyst, J., and Rotsaert, L. “The determinants of the loan-to-deposit ratio and its influence on bank profitability in the Belgian banking sector“. Universiteit Gent. 2018-2019. https://libstore.ugent.be/fulltxt/RUG01/002/784/063/RUG01-002784063_2019_0001_AC.pdf
Murphy, C. B. “Loan-to-Deposit Ratio (LDR)“. Investopedia. 2020. https://www.investopedia.com/terms/l/loan-to-deposit-ratio.asp
Ahern, D. “How to Calculate the Loan to Deposit Ratio; Average LDR of the Big Banks“. Investing for beginners. 2021. https://einvestingforbeginners.com/loan-to-deposit-ratio-daah/
Rajindra, R. et al. “Costs and Operational Revenue, Loan to Deposit Ratio Against Return on Assets: A Case Study in Indonesia“. The Journal of Asian Finance, Economics and Business. 2021. https://www.koreascience.or.kr/article/JAKO202112748674877.page
Euro area statistics: official web-site. https://www.euro-area-statistics.org/banks-balance-sheet-loans?cr=eur&lg=en&page=3&template=1
“Riven nepratsiuiuchykh kredytiv (NPL)“ [Non-performing Loan Level (NPL)]. Natsionalnyi bank Ukrainy. https://bank.gov.ua/ua/stability/npl
Kornyliuk, R. “Zaspokiilyvyi shtyl: bankivski trendy pershoho pivrichchia: Shcho vidbuvaietsia u bankivskomu sektori ta chy varto khvyliuvatysia za finansovu stiikist svoho banku“ [Soothing Calm: First-half Banking Trends: What's Happening in the Banking Sector and Whether to Worry about Your Bank's Financial Stability]. Ekonomichna pravda. August 26, 2021. https://www.epravda.com.ua/columns/2021/08/26/677190/
“Zvit pro finansovu stabilnist. Hruden 2021 r.“ [Financial Stability Report. December 2021]. Natsionalnyi bank Ukrainy. https://bank.gov.ua/admin_uploads/article/FSR_2021-H2.pdf?v=4
Rykhlytskyi, V. “Biznes v umovakh viiny: khto zaznav naibilshykh vtrat ta yak vidnovliuiutsia pidpryiemstva“ [Business in the Conditions of War: Who Suffered the Greatest Losses and How Enterprises are Restored]. Ekonomichna pravda. March 23, 2022. https://www.epravda.com.ua/publications/2022/03/23/684549/

 FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

 INFORMATION

The Plan of Scientific Conferences

 OUR PARTNERS

Journal «The Problems of Economy»