Problems and ways of improving the banking service mechanism for agriculturals in Ukraine

Introduction. Agriculture is a basic element of the Ukrainian economy, providing a significant part of GDP, the lion’s share of commodity exports, and to a large extent forming the resource base and credit portfolio of the banking system. At the same time, the active development of the agribusiness sector requires not only significant additional volumes of long-term and cheap credit resources in the national currency, but also additional specific banking products and services, which are currently offered by banks only fragmentarily. Problems Statement. The analysis of the main factors of activating bank lending and improving the mechanism of comprehensive banking services for agribusiness enterprises in Ukraine and substantiation of the list of measures taken by the state aimed at solving existing problems in this area. The purpose is the analysis of the main obstacles standing in the way of activating bank lending and improving the mechanism of banking services for agribusiness enterprises, substantiation of necessary measures by the state aimed at overcoming existing negative trends in the field of lending and banking services for farmers. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. Credit and other banking products aimed at agricultural producers and the main factors hindering the activation of lending to agricultural enterprises in Ukraine are analyzed. A range of measures aimed at solving existing problems is determined, including the expansion of the range of specific banking services at the level of one of the state banks with the subsequent creation of a specialized agricultural bank in the medium term. Recommendations for legislative support for this process are proposed. Conclusions. The agricultural sector forms a significant share of GDP and a significant part of Ukraine’s export revenues, and its further development requires active support from the banking system. This highlights the need for a set of measures by the state aimed at activating bank lending to agribusiness enterprises in the “single window” mode. To this end, it is advisable to recommend: amending the Regulation on determining the amount of credit risk for active banking operations by banks of Ukraine in terms of easing the requirements for liquidity ratios of real estate collateral; easing the requirements for agricultural sector enterprises regarding formal compliance with ESG standards of production projects that are financed within the framework of the government program “Affordable Loans 5-7-9%”; developing an expanded range of credit products and related specific banking services for farmers, organizing the provision of this package by one of the state-owned banks in the “single window” mode; developing a mechanism for long-term targeted refinancing of banks with the subsequent allocation of these funds to agricultural enterprises in the form of long-term loans; clarification and synchronization of contradictory provisions of the current legislation of Ukraine regarding banks and banking activities; determination of the feasibility of creating a specialized state agrobank, which should offer agribusiness enterprises a wide range of credit products and related services, introduce successful mortgage lending practices, contributing to the formation of a liquid land market, and should also become the main operator for attracting and distributing funds from foreign partners that will flow to Ukraine within the framework of the implementation of the Green Deal programs etc.