BANK LENDING AS A FACTOR OF UKRAINE'S ECONOMIC RESILIENCE UNDER MARTIAL LAW

Abstract

The article examines the current state and development trends of bank lending in Ukraine under martial law and the ongoing digital transformation of the financial sector. Bank lending remains one of the key mechanisms for financing economic activity; however, its development has been significantly affected by military risks, macroeconomic instability, changes in monetary policy, and the rapid introduction of digital technologies into banking services. The purpose of the study is to assess the current state of bank lending in Ukraine, identify the main development trends of the credit market under martial law, determine the key constraints affecting lending activity, and substantiate promising directions for the further development of bank lending in the context of digital transformation. The research is based on general scientific and special research methods, including analysis and synthesis, comparison, systematization, statistical analysis, graphical interpretation, and generalization. The empirical basis of the study includes statistical data published by the National Bank of Ukraine for the period 2023–2025. The study summarizes the theoretical foundations of bank lending and systematizes the main forms of banking credit products currently used in Ukraine. Particular attention is paid to the analysis of the dynamics of the banking sector's loan portfolio, changes in the ratio of bank loans to gross domestic product, the development of corporate and retail lending, interest rate movements, and the quality of loan portfolios measured by the share of non-performing loans. The findings indicate that despite the growth in the absolute volume of bank loans, the ratio of bank lending to GDP has gradually declined, reflecting a weaker role of bank credit in financing economic development. Corporate lending has demonstrated relatively slow growth due to increased credit risks and reduced investment activity, while lending to households has expanded steadily, supported by government lending programs and the gradual recovery of consumer demand. At the same time, a significant reduction in the share of non-performing loans confirms improvements in loan portfolio quality and more effective credit risk management by Ukrainian banks. The research identifies the major challenges facing the domestic credit market, including the consequences of military actions, high lending costs, limited long-term financing for the real sector, dependence on government support programs, shortage of reliable borrowers, and increasing cyber risks associated with digitalization. The article substantiates that the future development of bank lending should be based on the wider implementation of digital lending technologies, artificial intelligence, big data analytics, automated credit scoring, open banking solutions, and ecosystem-based financial services. These innovations will contribute to improving credit accessibility, increasing operational efficiency, reducing credit risks, and strengthening the resilience and competitiveness of Ukraine's banking system under current economic conditions.