RESEARCH OF REALIA OF BANK LENDING TO ECONOMIC ENTITIES

It has been determined in the article that the development of the market economy in combination with internal problems and external challenges creates certain conditions for bank lending, which are characterized by instability and slow pace. This, in turn, has a negative impact on the economy in general and on the business sector in particular. In the process of studying this issue, both on the part of the banking segment and on the part of enterprises, there have been discovered systemic problems that are parallel — the imbalances of the banking segment are negatively correlated with enterprises in terms of lending. It has been analyzed that the number of banks decreased during the study period. This is evidence that banks with a significant solvency ratio remain in the financial market. This situation signifies that the banking sector is evolving in line with legislation, which, although variable, is quite «rigid» in nature. Whereas this reflects the fact that the banking sector should lend to businesses. In the context of the study, the phenomenon of declining lending to businesses and identifying factors that have a significant impact on receiving loans by enterprises: inflation, the discount rate of the National Bank of Ukraine, and the «price» of new loans. It has been substantiated that the state of bank lending to economic entities today is unsatisfactory. This is due to the fall of the industrial production index, and the negative balance of export-import operations. Certain priority sectors of the national economy also have a negative trend. During the analyzed period, they tend to decline. In addition to the factors that have an impact on these indicators, it has been emphasized that the greatest impact on the state of corporate lending has the instability of the economy. This factor has a negative impact on bank lending, which in turn correlates with the economic stability of enterprises. Therefore, the article has concluded that banks do not provide loans because companies have a negative credit history, and it is because the banking sector issues expensive loans (sometimes in foreign currency and for the short term), and this results in non-repayment of loans.