Productivity and lending during the pandemic

The access to credits for companies with high productivity is an important factor for the economic recovery after the shock. In this paper, we analyze changes in banks’ lending to Russian companies’ in 2020. Our analysis shows that in 2020 the volume of new ruble credits increased relative to the level of the previous year. At the same time, there were changes in loans’ structure, which are explained by the effect of government lending support programs that began in May—June 2020. This fact indicates that a large number of firms made use of these programs last year, partially or fully covering temporary liquidity needs in the period of significant decrease in demand and revenue. Outside of the government support programs, the structure of market lending did not change significantly in 2020 compared to 2019. Banks prefer to lend to more productive companies: we see that the volume of credits to high productive firms was at the same level as in 2019. This means that efficient firms that should be drivers of economic recovery did not have problems with access to credit in 2020.

Political Cycles in Bank Lending to the Government

We study how political party turnover after German state elections affects banks’ lending to the regional government. We find that between 1992 and 2018, party turnover at the state level leads to a sharp and substantial increase in lending by local savings banks to their home-state government. This effect is accompanied by an equivalent reduction in private lending. A statistical association between political party turnover and government lending is absent for comparable cooperative banks that exhibit a similar regional organization and business model. Our results suggest that political frictions may interfere with government-owned banks’ local development objectives.

Role of Credit in the Development of Ukraines Economy

Introduction. It is known that credit is a significant achievement of mankind. The emergence and development of credit took place on the basis of the money function as a means of circulation. The development of commodity production and the need for increased working capital are the economic reasons for the credit need. Purpose .The aim of the article is to determine the role of bank credit in the economy of Ukraine and analysis of key indicators of credit activity. Results. The dynamics of loans to residents by sectors of the economy and the types of currencies and maturities for loans were studied. Loans issued by types of economic activity were analyzed. The current enterprise lending programs in 2020, initiated by the Government of Ukraine was considered. The main directions for improving bank lending were identified. Conclusions. Following conclusions are based on the analysis of the current state of bank lending in Ukraine: – the maximum value of loans in 2018 amounting to 1,073,131 million, and the lowest in 2012 – 815,142 million; – according to the sectors of the economy, the largest share of lending is lending to non-financial corporations (70-80% depending on the year); – over the period of lending in local currency dominated loans in foreign exception is 2015; – the structure of loans according to maturity prevails in local currency short-term loans and foreign currency structure of loans according to maturity – homogeneous; – The Cabinet of the Ministry of Ukraine introduced two programs to support small and medium-sized businesses in the country: «Available loans 5-7-9%» and the program «New Money»; For the development of bank lending and the establishment of financial stability in Ukraine should: conduct active banks to attract customers to the government lending programs, in turn, a borrower for the loan according to the program, to properly open the financial statements and maintain business activity at a high level for real bank assessment of the borrower’s creditworthiness.

Economics of sustainable industrial growth: concept, problems and possible mechanisms of formation

The monograph examines the issues of transformation of the Russian economy from raw materials export model to a model of sustainable industrial growth. In the first Chapter of the work the author formulates the definition of sustainable economy growth and the expediency of its formation, analyzes the problems that hinder the transformation of national economic system into a model for sustainable industrial growth, and identified possible mechanisms of such transformation. In the second Chapter, in order to determine the sources of the implementation of the financial mechanism of forming of economy of sustainable industrial growth, the author assesses financial potential of economic entities and analyzes the role of the banking sector and the state to invest resources in the Russian economy. In the third Chapter the author provides the rationale (for the decision of task of forming of economy of industrial growth) for the development of cooperation in the banking sector and the state in the financing of manufacturing industry on the basis of realization of interests of all key stakeholders of such projects, identifies the interests of the state, banking sector and manufacturing industries and estimated the fullness of their realization in the framework of the existing mechanisms of the banking and government lending to the economy. Designed for teachers, students of economic specialties, as well as anyone interested in the problems of development of economy in modern conditions.

A Relieved Norges Bank

This chapter assesses the emergence of financial institutions that would cater to individuals and businesses, which relieved Norges Bank of some of its tasks such as providing short-term business credit and long-term mortgage loans. Both private banks and government lending institutions were established within a framework of close cooperation between government officials and private operators. At the same time as new institutions were born, the dividing lines between Norges Bank and the government’s role in financial markets became more clear. The chapter then looks at developments up to 1857, a year that was dominated by a deep crisis in Western economies. Norges Bank had established broad contact directly with international finance houses and was better equipped structurally and intellectually to cope with external crises that spilled over into the Norwegian economy.