CREDIT ACTIVITIES OF THE BANKING SYSTEM IN THE CONDITIONS OF IMPLEMENTATION OF DIGITAL INNOVATIVE TECHNOLOGIES

Abstract

The article examines the features of the lending activity of the banking system of Ukraine in the context of modern challenges. It is determined that lending activity is a key component of ensuring the stability of the banking system, as it is the main source of bank income, stimulates economic development and is a tool for implementing monetary policy. The key indicators of the banking system's activity, the volume of loans granted to residents by economic sectors and by currency types and maturity dates were analyzed. It was found that in difficult economic conditions the banking system demonstrates an increase in key indicators, which positively assesses its adaptability and stability in the face of challenges in the economic environment. The conclusions are drawn that the banking system of Ukraine has been developing in recent years under challenging conditions (the impact of the pandemic, macroeconomic instability and full-scale war), which has significantly complicated the processes of forming and managing bank loan portfolios. One of the key long-term problems remains the high share of non-performing loans, which has stable lending activity and limits the direction of credit resources in the real sector of the economy. The system of dynamics of non-performing loans of Ukrainian banks is analyzed and a gradual reduction of their share is noted, which contributes to increasing the stability of the credit market. The need for adaptation of banking institutions to new challenges with the payment of the balance between profitability, financial stability and social responsibility and the growth of credit risks is substantiated. Proposals are provided to increase the efficiency of credit operations, expand access to credit resources and maintain economic activity in the long term, in particular through the introduction of digital innovative technologies. Digitalization of lending activities ensures a reduction in banks' operating costs, acceleration of the credit decision-making process, improvement of the quality of risk assessment, expansion of access to credit resources for bank clients, and improvement of the quality of banking services provided.