Peculiarities of the functioning of the bank lending segment in Ukraine under martial law

Abstract

Bank lending is a key element of the financial system of Ukraine, ensuring the redistribution of financial resources, supporting business activity and the stability of economic development. At the same time, the full-scale war and the introduction of martial law significantly transformed the operating conditions of the banking sector, in particular the lending segment. A sharp decline in economic activity, the destruction of production capacities, population migration, increased credit risks and deterioration of borrowers' solvency necessitated a review of approaches to providing loans to both the corporate sector and households.

An important role in the formation of the modern model of bank lending is played by changes in the monetary and regulatory policy of the National Bank of Ukraine, aimed at ensuring financial stability, curbing inflationary processes and supporting bank liquidity. At the same time, the state's participation in the lending process has intensified through the implementation of preferential lending programs, in particular for small and medium-sized businesses, the agricultural sector and critical infrastructure enterprises, which allows partially compensating for the increased risks of the war period.

The article analyzes the key features of the functioning of the banking lending segment in Ukraine under martial law, in particular the dynamics of loan portfolios, structural shifts by borrower type and currency, changes in lending conditions and approaches to risk management. Special attention is paid to the problems and limitations of the credit market development, as well as the prospects for its recovery in the context of the post-war reconstruction of the Ukrainian economy.