BANK LENDING TO PRIORITY SECTORS OF THE ECONOMY IN THE MECHANISM OF IMPLEMENTATION OF FINANCIAL POLICY OF UKRAINE
Abstract
The unprecedented challenges to society in recent years - the war in Ukraine, multiple military conflicts in the world, geopolitical competition, instability of global supply chains, the highest inflation rate in the United States in the last 40 years (2022), and the COVID-19 pandemic - have actualized the role of the state's financial policy and renewed the discussion on financial and credit mechanisms of state support for priority sectors, the lion's share of which are industrial sectors of the economy. Today, there is an urgent need for the Ukrainian government to focus its efforts on financial support for the development of the defense industry, the smooth functioning and restoration of social and critical infrastructure destroyed by Russian terror, and the formation of funds for the post-war reconstruction of the national economy. Given these circumstances, it is important to highlight current trends in approaches to bank lending to priority sectors of the economy in Ukraine and to clarify the peculiarities of foreign experience in financial support for the implementation of modern industrial development strategies. The purpose of the study is to highlight current trends in approaches to bank lending to priority sectors of the economy in Ukraine and to identify the peculiarities of foreign experience in financial support for the implementation of modern industrial development strategies. The article analyzes the current state of bank lending in Ukraine. The problems of sectoral and regional concentration of lending to non-financial corporations in Ukraine are highlighted. The key problems and obstacles to the intensification of bank lending to non-financial corporations are summarized. A SWOT-analysis of bank lending to domestic industry is carried out. The features of actualization of development priorities in developed countries are highlighted. The foreign experience of financial support for the implementation of modern industrial development strategies is clarified. A mechanism for intensifying lending to priority sectors of the economy and strategically important industrial enterprises in Ukraine is proposed.
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