Special attention to the aspect of regulation

Special attention to the aspect of liquidity regulation requires credit policies of banks, which today is not the only factor increasing the risk of liquidity through imbalances in deposit and lending operations, but also adversely affect the macro-economic balance and stimulate the development of inflationary processes in Ukraine. Now the credit banks' investments are directed mainly to the current activity of economic agents and consumer credit and housing needs of individuals. In particular, the structure of banks' loan portfolio share of loans in the ongoing activities at the end of August 2008 was about 78%, whereas the investment - but only 22%. Of investment credits granted by banks, more than 55% - mortgage, of which 80% provided the population that is living. The pace of bank lending to individuals far exceeds the rate of lending to economic entities, and the share of loans granted by banks to individuals, rose from 5% in 2000 to 37% on 01.09.2008 The rapid growth of lending to households, on the one hand, it increases the purchasing power of citizens and the level of household and housing standards, and the other - is a challenge to the economic development of Ukraine, the stability of its financial system and price stability. Activation of the credit demand of the population and the lack of adequate domestic supply stimulates the growth of consumer imports, which adversely affects the current account of balance of payments, inhibits the development of domestic producers as a result of consolidation in the domestic market, foreign, increases systemic risk in the banking system due to foreign exchange and fixed-term imbalances in the active and passive operations of banks, reducing its financial stability for the growth of banks' dependence on foreign borrowing to replenish the resource base. All of this makes the problem of lack of domestic supply, adequate growing purchasing power of population and development of inflationary processes in the country. Category: Liquidity of the banking system of Ukraine