Assessment of bank lending diversification in Ukraine

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At the present stage, commercial banks conduct their activities under constantly changing general economic, social and political conditions, which influence the reliability and efficiency of banking institutions performance. Nowadays, the problems of comprehensive assessment of the efficiency of main banking operations as well as the reliability of the Ukrainian banking system became relevant.
The purpose of the paper is to study the current state and diversification of bank lending in Ukraine, the problems that arise in the national economy due to the deteriorating performance of the banking system of Ukraine. The analysis has shown that a certain stable but not effective loan activity of Ukrainian banks for a long period of time was observed. Also, there is a demand for credit resources, which is currently not completely fulfilled.
The recommendations provided in this article contribute to the development of bank lending and the related increase in entrepreneurship and successful lucrative enterprises in Ukraine. Also, the analysis has revealed the direct correlation of the domestic credit provided by the financial sector with 14 relevant indicators and inverse dependence with 6 indicators.

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    • Figure 1. Dynamics of return on assets and return on equity of Ukrainian banks in 2016–2018, %
    • Figure 2. Weighted annual average rates on loans by industries in Ukraine in 2017, %
    • Figure 3. Domestic loans provided by the financial sector in Ukraine, % of GDP
    • Table 1. Interest on loans in hryvnia according to the statistical reporting of Ukrainian banks (excluding overdraft) in 2010–2017
    • Table 2. The ratio of loans by sectors of the economy to total gross loans
    • Table 3. Correlation coefficients of the dependence of the domestic loans provided by the financial sector with the researched indicators
    • Table 4. Correlation coefficients of the domestic loans to the private sector (% of GDP) with the researched indicators
    • Table 5. Correlation coefficients of domestic loans to the private sector by banks (% of GDP) with researched indicators