Тенденції розвитку ринку банківських кредитних послуг фізичним особам в Україні
Trends of the development of the bank credit services market to individuals in Ukraine

Summary/Abstract: The theoretical and practical aspects of functioning of the bank credit services to individuals are the subject of the research.The purpose of the article is to identify current trends of the development in the market of credit services, that are provided bydepository corporations to households in Ukraine.Methods of research. Methods of theoretical generalization and comparison are applied in the article.The results. Market of bank credit services has traditionally been a main component of the domestic market of credit services. For2006-2008 Ukraine achieved an increase in the volume of bank loans granted to households. However, in 2009 this figure hasalready decreased in comparison with the previous year and at the same time the share of bank loans provided to households hasreduced to the level of 2006. This is primarily due to the global financial crisis, when banks were forced to resort to rationing of credit.The decline in volume of credit services offered by depository corporations to individuals, continued in Ukraine also throughout theperiod 2010-2012. Negative processes in the credit sector, led to an increase of the problem loans’ share granted to individuals in theloan portfolios of depository corporations. It’s the sharp rise of dollar exchange rate that affected the increase of households’ problemdebts to depositary corporations. This fact primarily increases the number of distressed mortgage loans granted before the ban offoreign currency lending to individuals. At the same time the lack of banks’ ability to realizatione quickly the mortgaged property is thefactor of influence on the existence of significant amounts of bad debts on credits to households.The prevalence of consumer loans is one of the trends of the market of credit services to individuals in Ukraine. At the same timelong-term loans have the largest share in the structure of credit services provided by depository corporations to individuals in Ukraine.In addition loans in foreign currency present a significant proportion of total Bank credit services to individuals.Area of the results application. The obtained results contribute to the justification of the development directions of the bank creditservices to individuals in Ukraine.Conclusions. Thus, by the fall of 2008 the market of credit services to individuals in Ukraine experienced a credit boom that was anegative manifestation of credit expansion on the economy. In Ukraine the State should promote the rational and efficient householdslending to avoid financial crisis as a consequence of the credit boom. Credit services to individuals provided by deposit domesticcorporations have become less accessible to a large number of households. This is due to shortage of bank credit resources; declinein individuals’ demand for consumers credit services caused by reducing their creditworthiness; increase of credit risk for bothlenders and borrowers. At the same time there is a reorientation of consumer demand for credit services to non-bank financialinstitutions, which are becoming competitors to depository corporations.

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