THE IMPACT OF THE USE OF CREDIT SERVICES ON THE FINANCIAL SECURITY OF HOUSEHOLDS IN UKRAINE
Article Sidebar
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution 4.0 International (CC BY 4.0) license, which permits unrestricted use, distribution, and reproduction of the content in any medium, providing that the original author and source are credited.
Main Article Content
Abstract
The aim of the article is to assess the impact of the use of credit services on the current state of financial security of households in Ukraine. It is proposed to understand the financial security of a household as the protection of its financial interests, which are determined by the needs of its members in a dignified life and comprehensive development, from external threats and internal destabilizing factors. It has been identified the trend to increase the volume of lending to individuals by financial institutions and especially — financial companies, which hadn’t been changed by the pandemic situation. At the same time the average debt burden of households remains insignificant. The authors argue that there is a special financial insecurity of clients of financial companies due to the confusing lending conditions and extremely high real interest rates. It is emphasized that the level of economic and financial literacy of people and the responsibility of financial institutions-creditors, which should clearly and easily explain to potential borrowers all the characteristics of the loan product and related risks, provide repayment schedules. loan obligations under different options, to announce the real cost of the loan and the amount of interest and commissions payable. It is proved that the impact of the use of credit services on the financial security of households is ambiguous, as it depends on the conscious attitude of both individuals and financial institutions-creditors to determine the amount of the required loan, its terms and the creditworthiness of borrowers. There are significant risks for both sides of the credit relationship, which legal regulation has recently significantly improved the protection of the financial interests of individual borrowers, which will help to maintain a sufficient level of the financial security of their households.
Article Details
How to Cite
References
Bilous, I. I. (2020). Sutnisna kharakterystyka poniattia finansovoi bezpeky domohospodarstv [The essential characteristics of the concept of financial security of households]. Derzhava ta rehiony. Ekonomika ta pidpryiemnytstvo — State and regions. Economics and Entrepreneurship, 4 (115), 33—37 [in Ukrainian].
Danyliuk, M. M. (2019). Finansova bezpeka domohospodarstv v umovakh finansovoi nestabilnosti [Financial security of households in conditions of financial instability]. Ekonomika. Finansy. Pravo — Economy. Finances. Law, 5 (4), 6—8 [in Ukrainian].
Drahan, O. O. (2015). Finansova bezpeka domohospodarstv: poniattia ta sutnist [Financial security of households: concept and essence]. Formuvannia rynkovykh vidnosyn v Ukraini — Formation of market relations in Ukraine, 8, 173—176 [in Ukrainian].
Zvarych, M. S. (2015). Teoretychni pidkhody do vyznachennia sutnosti finansovoi bezpeky domohospodarstv [Theoretical approaches to determining the essence of financial security of households]. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Ekonomichni nauky — Scientific Bulletin of Kherson State University. Economic Sciences, 15.1, 130—133 [in Ukrainian].
Pshyk, B. I. (Ed.). (2020). Finansova bezpeka domohospodarstv v Ukraini: suchasni problemy ta mekhanizm zabezpechennia [Financial security of households in Ukraine: modern problems and support mechanism]. Lviv: Spolom [in Ukrainian].
Poltorak, A.S. (2020). Monitorynh stanu finansovoi bezpeky domohospodarstv ta yoho vplyvu na stan finansovoi bezpeky Ukrainy [Monitoring the state of financial security of households and its impact on the state of financial security of Ukraine]. Visnyk ekonomichnoi nauky Ukrainy — Bulletin of Economic Science of Ukraine, 2, 145—151 [in Ukrainian].
Snishchenko, R. H. (2014). Finansova bezpeka domohospodarstv u period nestabilnosti ekonomiky [Financial security of households in a period of economic instability]. Visnyk KrNU imeni Mykhaila Ostrohradskoho. Ekonomichni nauky — Bulletin of the Mykhailo Ostrohradsky KrNU. Economic Sciences, 1 (3), 149—159 [in Ukrainian].
Hudz, T. P. (2019). Mobilizatsiia zaoshchadzhen domohospodarstv cherez finansovi instrumenty nebankivskykh finansovo-kredytnykh ustanov v Ukraini [Mobilization of household savings through financial instruments of non-bank financial institutions in Ukraine]. Aktualni problemy ekonomiky — Actual problems of the economy, 10 (220), 69—78 [in Ukrainian].
Kizyma, T. O. (2018). Finansovi instrumenty zaluchennia zaoshchadzhen domohospodarstv do investytsiinykh protsesiv: prahmatyko-analitychnyi aspekt [Financial instruments for attracting household savings to investment processes: pragmatic and analytical aspect]. Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu — Bulletin of Ternopil National Economic University, 4, 33—46 [in Ukrainian].
Kizyma, T., & Kizyma, A. (2016). Domohospodarstva na finansovomu rynku Ukrainy: povedinkovo-motyvatsiinyi aspekt [Households in the financial market of Ukraine: behavioral and motivational aspect]. Svit finansiv — The world of finance, 3 (48), 89—101 [in Ukrainian].
Mital, O. H. (2017). Zaoshchadzhennia domohospodarstv ta yikh transformatsiia v investytsiini resursy [Household savings and their transformation into investment resources]. Yevropeiskyi vektor ekonomichnoho rozvytku — European vector of economic development, 1 (22), 70—78 [in Ukrainian].
Slavkova, A. A., & Hordeichuk, T. O. (2017). Vplyv spozhyvchoho kredytu na finansovi resursy domohospodarstv [The impact of consumer credit on financial resources of households]. Ekonomika: teoriia ta praktyka — Economics: theory and practice, 1, 67—73 [in Ukrainian].
Vorobiov, Yu. M., & Voroshylo, V. V. (2013). Finansy domashnikh hospodarstv u finansovii systemi derzhavy [Finance of households in the financial system of the state]. Simferopol: VD «ARIAL» [in Ukrainian].
Maroto, M. (2021). The Great Balancing Act: Households, Debt, and Economic Insecurity. Socius: Sociological Research for a Dynamic World, 7, 1—16.
Quach, M. H. (2016). Does access to finance improve household welfare? Investment Management and Financial Innovations, 13.2, 76—86.
Verkhovna Rada Ukrainy. (2001). Pro finansovi posluhy ta derzhavne rehuliuvannia rynkiv finansovykh posluh: Zakon Ukrainy vid 12 lypnia 2001 roku No 2664-III [On financial services and state regulation of financial services markets: Law of Ukraine dated July 12, 2001 No 2664-III.]. Vidomosti Verkhovnoi Rady Ukrainy — Bulletin of the Verkhovna Rada of Ukraine, 1. Retrieved from https://zakon.rada.gov.ua/laws/show/2664-14#Text [in Ukrainian].
Verkhovna Rada Ukrainy. (2017). Pro spozhyvche kredytuvannia: Zakon Ukrainy vid 15 lystopada 2016 roku No 1734-VIII [On consumer lending: Law of Ukraine dated November 15, 2016 No 1734-VIII]. Vidomosti Verkhovnoi Rady Ukrainy— Bulletin of the Verkhovna Rada of Ukraine, 1.Retrieved fromhttps://zakon.rada.gov.ua/laws/show/1734-19#Text [in Ukrainian].
Natsionalnyi bank Ukrainy (2021).Statystyka [Statistics]. Retrieved from https://bank.gov.ua/ua/statistic [in Ukrainian].
Natsionalnyi bank Ukrainy. (2021).Zvit pro finansovu stabilnist, cherven 2021 roku [Financial Stability Re¬port, June 2021]. Retrieved from https://bank.gov.ua/ua/news/all/zvit-pro-finansovu-stabilnist-cherven-2021-roku [in Ukrainian].
Natsionalnyi bank Ukrainy (2020). Maibutnie rehuliuvannia rynku kredytuvannia finansovymy kompaniiamy. Bila knyha. [Future regulation of the lending market by financial companies. White book]. Kyiv. Retrieved from https://bank.gov.ua/ua/news/all/bila-kniga-maybutnye-regulyuvannya-rinku-kredituvannya-finansovimi-kompaniyami [in Ukrainian].
Verkhovna Rada Ukrainy. (2019). Pro vnesennia zmin do deiakykh zakonodavchykh aktiv Ukrainy shchodo zakhystu prav spozhyvachiv finansovykh posluh: Zakon Ukrainy vid 20 veresnia 2019 roku No 122-IX [On amendments to certain legislative acts of Ukraine concerning the protection of the rights of consumers of financial services: Law of Ukraine dated September 20, 2019 No 122-IX]. Vidomosti Verkhovnoi Rady Ukrainy — Bulletin of the Verkhovna Rada of Ukraine, 44.Retrieved from https://zakon.rada.gov.ua/laws/show/122-20#Text [in Ukrainian].
Verkhovna Rada Ukrainy. (2020). Pro vnesennia zmin do deiakykh zakoniv Ukrainy shchodo spozhyvchoho kredytuvannia i formuvannia ta obihu kredytnykh istorii: Zakon Ukrainy vid 15 veresnia 2020 roku No 891-IX [On amendments to certain laws of Ukraine on consumer lending and the formation and circulation of credit histories: Law of Ukraine of September 15, 2020 No 891-IX]. Vidomosti Verkhovnoi Rady Ukrainy — Bulletin of the Verkhovna Rada of Ukraine, 51.Retrieved from https://zakon.rada.gov.ua/laws/show/891-20#Text [in Ukrainian].