Development of the credit services market in the conditions of cyclic macroeconomic instability

Zhavoronok Artur
PhD (Economics), Doctoral Student (Economics), Department of Economics, Accounting and Taxation, Chernihiv Polytechnic National University, Chernihiv, E-mail: artur.zhavoronok@ukr.net, ORCID ID: https://orcid.org/0000-0002-2310-5425

Cite this article:

Zhavoronok A. (2022) Development of the credit services market in the conditions of cyclic macroeconomic instability. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rozvytok rynku kredytnykh posluh v umovakh tsyklichnoi makroekonomichnoi nestabilnosti; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (300-301), pp. 35-40.

Abstract

The credit services market is an integral component of the sphere of financial services. This market is an extremely important element of the financial system of any country, as it allows those economic entities that need them for their own development to receive financial resources. Also, this market is one of the most important sources of income and profits of credit institutions, including commercial banks. However, the development of the credit services market strongly depends on the development of the country's financial system, current conditions for the activity of credit institutions, historical features of the birth and formation of such a market. The impact of this market on the economic development of the country is also objectively complex and significant. Providing financial resources to economic agents for temporary use, financial institutions stimulate the development of both the country's financial system and its national economy. In this part, lending processes of small and mediumsized enterprises, which are unable to raise funds on international financial markets and participate in transactions with securities, are of particular importance. The article examines the theoretical foundations of the development of the credit services market of Ukraine in conditions of cyclical macroeconomic instability, which made it possible to ascertain its uneven development, constant and sometimes rapid changes in the macroeconomic environment in which credit institutions operate. It was determined that the experience of almost twenty years of development of such a market also shows that such a market always, sometimes gradually, restores its own functioning. At the same time, the efficiency of credit institutions is constantly increasing. It has been proven that the war and cyclical macroeconomic instability will negatively affect the recovery of the credit services market in the country, which will be due to the difficult economic situation and the destruction of a significant territory of the country.

Keywords

credit services market, national economy, banking system, banking institutions, stability of the banking system, cyclical development.

JEL classification: G510, G210; DOI: 10.32680/2409-9260-2022-11-12-300-301-35-40

UD classification: 336.71(477)

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