FINANCIAL RESILIENCE OF CREDIT UNIONS AND LOCAL DEVELOPMENT UNDER WARTIME CONDITIONS IN UKRAINE

Abstract

Objective. The present study is of particular pertinence in light of the growing role of local financial institutions in supporting the economic resilience of communities under wartime conditions in Ukraine. Credit unions, as co-operative financial organisations, represent a significant component of local financial systems, particularly in rural areas where access to formal banking services is restricted. Concurrently, external shocks have exerted a substantial impact on their operational stability. The objective of the research is to assess the financial performance and systemic vulnerabilities of credit unions in Western Ukraine, with a particular focus on market limitations and cybersecurity risks. Methodology. The study takes a mixed-methods approach, combining a financial analysis of credit union performance indicators with a pilot survey assessing cybersecurity and institutional capacity. The research's analytical framework integrates elements of social economy and programme-oriented approaches to local development. This allows financial institutions to be examined as contributors to value chain efficiency and human capital resilience at the community level. Results. The results demonstrate that wartime conditions have significantly exacerbated the pre-existing structural weaknesses of credit unions, such as the high cost of capital, limited outreach networks and growing administrative and regulatory burdens. The study also identifies critical gaps in cybersecurity preparedness, such as insufficient investment in digital infrastructure, a lack of qualified personnel, and an absence of systematic risk management practices. The research indicates that the majority of surveyed institutions demonstrate low levels of digital resilience, which increases operational risk and constrains their ability to expand financial services. Practical implications. The findings highlight areas in which credit unions should be strengthened, including financial restructuring, digital modernisation and targeted capacity building in cybersecurity and institutional governance, particularly within programme-oriented development frameworks. Value/Originality. The study makes a valuable contribution to the existing literature by integrating financial performance analysis with cybersecurity assessment within the context of local co-operative institutions. It links these two areas to the social economy, human capital development and local economic resilience in wartime.