Analysis of Mortgage Lending in Banks in Ukraine

Abstract

The purpose is a mortgage market that occupies one of the major places among the financial mechanisms of economic stimulation and stable development of the economy. The mortgage market occupies one of the main places of financial mechanisms and economic incentives for the sustainable economic development. Mortgage lending covers the provision of long-term bank loans for the purchase, construction of residential real estate, as well as for repairs or to develop their own small businesses, where the collateral for such loans is real estate. Distinctive features of mortgages include: mortgages, like any collateral, in fact, is a way to ensure proper implementation of the other (main) liabilities-loan or credit agreement, lease, contract, compensation, etc.; the subject of a mortgage is always real estate. Real estate includes land plots and everything that is firmly associated with them: buildings, perennial plants, etc.; mortgaged property remains in the possession of the debtor; the agreement between the creditor and the debtor on the establishment of a mortgage is formalized by a special document-the mortgage, which is also subject to state registration. The mortgage crediting is the method of accumulation of financial resources, effective instrument of bank activity, and an important factor in economic development of the country on the whole. Research results are market of the real estate and financial services development, to the revival of fund market, here the mortgage crediting is capable not only of activating reforms in industries of the economy but also gradually providing the decision of housing problems of the population. Practical consequences consist in the solution of problems that are related to the market for mortgage services of Ukraine's development from 2006 to 2016. Value/originality. Analysis of the mortgage market in Ukraine shows that in recent years, its scope, dynamics, and trends do not meet the needs of either people or developers. At a time when the dynamics of macroeconomic indicators do not give hope for a quick exit from the crisis and high political risks increase the uncertainty of social development, long-term mortgage loans are risky for the banking sector and for borrowers. Implementation methods in combination with the continuation of market reforms in Ukraine will contribute to the economic growth and socioeconomic development.

Credit Activity Legal Regulation of Commercial Banks

“…With less confidence, we can say that this will improve the situation with bank lending, which is undergoing difficulties. Progress is expected due to the write-off of bad debts on credits, the transition to the national currency of debt, the reduction of interest rates on credits, the introduction of new rules for dealing with debt (Kharabara, 2017).…”

Housing and integration of internally displaced persons: The case of Ukraine in 2018

“…A fledgling mortgage sector was decimated by the 2008-2009 global financial crisis and the 2014 post-Maidan economic crisis (Burdyak and Novikov, 2014;Manzhos, 2016). As of 2015, the mortgage-to-GDP ratio was <1% (Kharabara, 2017). Although housing prices fell with the crises of the past decade, so did incomes, rendering housing unaffordable out of labor market earnings (UNECE, 2013;Mezentsev et al, 2019).…”

Prospects of using security mechanism in the process of rehabili-tation the building sphere in Ukraine

“…Real estate and financial services promoting development, recovery of the stock market, mortgage lending can not only activate reforms in the economy but also gradually ensure solving housing problems of the population. The use of this tool will significantly reduce tension in the housing sector by providing an average citizen with the opportunity to acquire housing through a mortgage [1]. It should be noted that mortgage market development and globalization under present conditions create a new financial assets class, spreading of which in terms of financial deregulation have lead to nontransparency and increased risks in financial system.…”