Scientific article

Responsible lending as the foundation of consumer confidence and the sustainable development of the banking sector

Vovchenko, Oksana

This article examines the theoretical foundations and practical aspects of implementing the principles of responsible lending as a fundamental basis for enhancing consumer confidence and ensuring the sustainable development of Ukraine’s banking sector. Based on
a synthesis of international experience, recommendations from global organisations and the provisions of the National Bank of Ukraine, key guidelines for the ethical interaction of financial institutions with borrowers have been identified.

This article examines the theoretical foundations and practical aspects of implementing the principles of responsible lending as a fundamental basis for enhancing consumer confidence and ensuring the sustainable development of Ukraine’s banking sector. Based on
a synthesis of international experience, recommendations from global organisations and the provisions of the National Bank of Ukraine, key guidelines for the ethical interaction of financial institutions with borrowers have been identified. Particular attention is paid to an empirical analysis of the development of the Ukrainian banking sector during the period 2022–2026. It has been established that, despite the challenging macroeconomic
conditions of martial law, domestic financial institutions have maintained a high level of capitalisation and liquidity. A positive trend has been identified regarding a significant reduction in the share of non-performing loans, which directly indicates an improvement in the quality of credit risk management and
the release of additional liquid resources from banks to finance priority sectors of the economy. It is demonstrated that responsible lending acts as a powerful catalyst for sustainable
macroeconomic recovery through the synergy of three key ESG components: economic,
social and governance. It is argued that the further integration of sustainable
development principles and European non-financial reporting standards is a decisive factor in ensuring the long-term competitiveness and financial stability of the banking system in Ukraine.

сталий розвиток

ESG-принципи

етичність бізнесу

непрацюючі кредити

responsible lending

sustainable development

business ethics

non-performing loans