Received: 06.04.2025    Аpproved: 21.04.2025    Рublished online: 12.05.2025

Cite this article:

Derkach Y., Zaiets D. (2025) Banking consumer lending: development trends under martial law. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Bankivske spozhyvche kredytuvannja: tendencii rozvytku v umovah vojennogo stanu.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 4 (329), pp.46-54.

Abstract

The article explores current trends and prospects for the development of consumer lending under martial law in Ukraine. The aim is to identify the adaptive mechanisms of the banking sector in response to crisis challenges. The research methodology is based on statistical data analysis, comparative analysis, and a systematic approach. The results indicate a transformation of banks’ credit strategies and a growing demand for consumer loans under conditions of instability. The practical significance lies in the development of recommendations aimed at enhancing the resilience of the credit system. It is argued that Ukrainian practice contains many aspects that require not only formal implementation. The article provides recommendations intended to minimize the risks associated with bank consumer lending. In particular, the study highlights the growing importance of responsible lending practices, including more thorough assessments of borrowers' creditworthiness and the implementation of mechanisms for monitoring loan performance during crisis periods. The role of consumer lending in maintaining household purchasing power and stimulating domestic demand is emphasized as crucial for economic recovery. Attention is also paid to regulatory changes introduced by the National Bank of Ukraine to ensure financial system stability. Furthermore, the paper analyzes the experience of individual Ukrainian and foreign banks that have adjusted their lending strategies, diversified their credit portfolios, and introduced supportive financial products for individuals affected by the war. Special emphasis is placed on the role of credit risk management practices in minimizing the negative impacts of economic uncertainty. Additionally, the research underscores the need for the banking sector to enhance digital lending channels and remote risk assessment tools, which have become vital in wartime conditions. The conclusions presented can be useful for both financial institutions and policymakers seeking to balance accessibility to credit with financial risk management in extreme conditions, while promoting financial inclusion and supporting long-term sustainable economic growth.

Keywords

lending, martial law, bank, Ukrainian experience, consumer credit, credit system.

JEL classification:G210; E580; D140; C510;DOI: https://doi.org/10.32680/2409-9260-2025-4-329-46-54

UD classification: 336.77:336.71:336.201.2

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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