The Organizational and Economic Principles of the Development of the Pawnshop Business in Modern Conditions

The aim of the article is to substantiate the organizational and economic foundations for the development of the pawnshop business as a specific component of the financial market, which integrates commerce, lending, and is subject to the regulatory requirements of the National Bank of Ukraine. It is noted that under the conditions of martial law in Ukraine, the role of pawnshops is increasing as a source of short-term credit support for the population. The pawnshop business is proposed to be considered as a type of entrepreneurial activity related to lending on contractual terms by pawnshops to individuals at a specified interest rate, secured by movable property, and involving its organizational support. It is proved that pawnshops can be regarded as the most stable institutions in the financial market, especially during times of negative economic transformations, as the risk in their activities is minimal. The organizational and economic foundations for conducting pawnshop business in Ukraine have been improved, which are proposed to be considered in the context of implementing the regulatory functions of the National Bank of Ukraine and the entrepreneurial component. Emphasis is placed on the necessity of implementing comprehensive and risk-oriented supervision of the relevant activities, adhering to the principles of proportionality, forward-looking, early detection and response, professional judgment, and legal certainty. Directions for the development of the pawnshop business in Ukraine are proposed based on the improvement of the regulatory and legal framework; the introduction of modern methodologies for assessing the creditworthiness of borrowers and credit security; overcoming social stigmatization, increasing the level of trust through the implementation of an efficient consumer protection system for pawnshop services; the development of a new paradigm of comprehensive and risk-oriented supervision of the pawnshop services market; the development of criteria for compliance with capital requirements considering current changes in legislation and business transparency; the introduction of innovative business models; and the implementation of differentiated and flexible approaches to the pricing mechanism for pawnshop loans. The prospects for further research involve the development of instruments for quantitative and qualitative assessment of the efficiency of pawnshop activities, adhering to the conception of sustainable development, regulatory requirements, and risk-oriented management.