Credit activities of banks as a basic precondition to ensure the financial stability of the banking system of Ukraine

Abstract

Introduction. The paper considers the economic substance of credit activity of banks and its impact on the financial stability of the banking system.

Purpose. The aim of this paper is to study the effectiveness of credit activity of banks as a precondition for determination of the financial stability of the banking system in unstable conditions.

Method. On the basis of the dialectical method of cognition the areas of improvement of lending activities of banks are considered and identified. To study the impact of the credit and financial stability of the banking system the statistical methods and methods of technical-economic and financial analysis and observation have been used.

Results. It has been given the analytical assessment of  the credit activity of banks. Its impact on the financial stability of the banking system has been considered. The economic content of the definition of "bank credit operations" is specified. It has been established that the credit activities of banks affect a number of internal and external factors that have been identified and grouped by criteria. The requirements to the credit process with the ain of effective banking activity are grounded. The current state and practical recommendations for the improvement of credit activity of banks have been analysed.