FEATURES OF BANK LENDING UNDER CONDITIONS OF UNCERTAINTY
Abstract
The article reveals the features of bank lending under conditions of economic uncertainty, which lead to increased risks and changes in the behavioral strategies of financial institutions. The main factors of economic instability are identified, including inflationary pressure, currency volatility, fluctuations in the key interest rate, political and regulatory unpredictability, military risks, and the decline of business activity. The modern banking system operates in a constantly changing economic environment, which necessitates a thorough analysis of lending processes in the context of growing uncertainty. The dynamics of macroeconomic indicators, changes in fiscal and monetary policy, the impact of military actions, energy and financial shocks form a complex field of risks in which banks must ensure the stability of their operations. The purpose of the article is to explore the features of bank lending under uncertainty, identify the factors of economic instability, and outline the directions for adapting banks’ credit policies to the growth of risks and the volatility of the financial environment. The study examines how these factors influence the structure of credit portfolios, lending volumes, reserve levels, and liquidity in the banking sector. The article emphasizes the need to adapt credit policy to instability through strengthening analytical tools, using digital technologies in scoring models, diversifying credit portfolios, developing risk transfer systems, and implementing proactive borrower monitoring. It is substantiated that effective credit policy should be based on the principles of flexibility, balance, and technological innovation, ensuring the stability of the banking system even during periods of heightened uncertainty. It is emphasized that the effectiveness of bank lending depends on the coordination of actions of the state and the banking system The research results have practical significance for developing risk management strategies and improving banking credit activities in a dynamic financial environment.
References
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