ANALYSIS OF THE STATE OF THE BANKING SYSTEM OF UKRAINE AT THE MODERN STAGE

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ANALYSIS OF THE STATE OF THE BANKING SYSTEM OF UKRAINE AT THE MODERN STAGE

Journal Title: Науковий погляд: економіка та управління - Year 2018, Vol 2, Issue 60

Abstract

The analysis of the number of banks and the state of their assets and capital during the crisis of the banking system and after its completion is carried out. The dynamics of changes in the main indicators of groups of banks was researched and significant changes in the structure of the banking sector were identified. The increase of the share of the state and banks of foreign banking groups in the banking system of Ukraine was revealed. The research showed that during the crisis period of 2014-2016 there were structural transformations in the banking system of Ukraine, which resulted in an increase in the share of banks with a state interest and increased influence of the state on the banking system and the stability of the national currency. In 2014, 16 banks were found insolvent, 19 financial institutions were in the stage of liquidation. However, in 2015 there was a further reduction in the number of solvent banks. Another 43 banks were placed in the category of liquidated banks, in 2016-20, and in 2017 their number increased by another 11 banking institutions. Thus, the number of banks at the stage of liquidation as of June 30, 2018 amounted to 96 financial institutions, while the number of solvent banks was only 82. According to the NBU press service, during the crisis of 2014-2016, the banking system of Ukraine lost 90 banks whose assets before the crisis amounted to about one third of the assets of the entire banking system. The vast majority of liquidated banks were small banks with domestic private capital. Clearance of the banking system from financially unstable institutions, of course, has its positive impact, but the reverse side of this process is to increase monopolization of the banking market by large banks. Under such conditions, it would be advisable to take measures to attract domestic investments into the banking sector and create the most favorable conditions for the development of small banks, since they were the ones who suffered most. Despite all the positive moments of the entry of foreign capital into the domestic market of banking services, one should also take into account shortcomings. Large banking institutions with foreign capital in the period of instability in the economy can provoke a significant outflow of financial resources, lead to unexpected fluctuations in banks' liquidity, increase instability, or even lead to loss of sovereignty in the field of financial and monetary policy of the state.

Authors and Affiliations

O. Yu. Scoromna

Keywords

banks banking system of Ukraine banking sector financial institution currency financial and economic crisis capital

EP ID EP450101
DOI 10.32836/2521-666X/2018-2-60-25
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