Analysis of the influence of economic factors on the dynamics of interest rates of banks on loans

Abstract

The banking system as a component of the financial system of any country plays a decisive role in its economic development. The main functions of banks are the mobilization of temporarily free funds and their placement on their own behalf and at their own expense on the basis of repayment, urgency and payment in the form of lending to the state, legal entities and individuals, in conducting financial calculations and the formation of the payment system of the state, the implementation of monetary issues in bank and deposit forms, etc.

As you know, banking institutions are intermediaries between the owners of funds and their users. At the same time, the status of the bank serves as a kind of guarantee of the preservation and return of funds to the owners for a specified period of time. Banking activity is characterized by multiple excess of borrowed funds in comparison with own capital, therefore operations are carried out mainly due to attraction of funds, and not of own capital of banks. Therefore, banking activity primarily involves control activities aimed at forming interest rates on credit and deposit transactions. However, today's instability of the political situation, as well as the rather rapid growth of the market of credit and deposit services, form the environment for the emergence of interest risk. In this regard, the differentiation of interest rates among the most urgent issues of the banking sector of Ukraine, which needs to be studied in more detail, is now. It is the dynamics of changes in interest rates on loans and deposits of Ukrainian banks and is the subject of study of this work.

The purpose of the study of the subject of this course work is to identify the real factors that influence the dynamics of the level of interest rates on credit and deposit operations of commercial banks of Ukraine, as well as the identification of possible interest risks and finding ways to protect them.

The tasks of the work are:

- study of theoretical materials, in which the content of this topic is revealed;

- analysis of the dynamics of the level of interest rates of commercial banks;

- research on the factors influencing the differentiation of interest rates;

- research of risk aspects arising in the process of differentiation;

- finding ways to overcome interest rates.

The topic of differentiation of the interest rate has not been considered by such domestic scientists as Kovalenko VV, Lagutin VD, Stoyko O.Ya., Butinets F.F., Gerasimovich AM, Alekseenko M.D., Parasi- Vergulenko IM, Moroz A. M., Savluk M. I., Pukhovkina M. F.

The study of the differentiation of interest rates are very important in the process of forming interest in both credit and deposit operations. It is these studies that help to identify the risk factor and problems that already exist and adversely affect banking, find effective ways to overcome all negative aspects. What will further enable employees of banking institutions to respond promptly to the occurrence of certain complications in the process of work and eliminate them.