CONSOLIDATION PROCESSES IN THE BANKING SECTOR OF UKRAINE: STAGES OF DEVELOPMENT AND FACTORS OF ACTIVATION
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 6, Issue 62
Abstract
The article deals with the main stages of development of consolidation processes in Ukraine, depending on the country’s economic cycles. It is determined, which basic forms of consolidation prevail at different stages of the economic development. The influence of the banking system of Ukraine and the main indicators of banks’ activity on the development of consolidation processes is analyzed. The dynamics of the financial stability of the banking system are determined based on the analysis of the main indicators of activity. Consolidation strengthens the position of domestic banks in the market competition, which is growing on the national markets as a result of the arrival of large foreign banks. Also, consolidation leads to the withdrawal of small banks from the market as a result of the banking crisis, which implies an increase in reserves and an increase in capitalization and concentration rates. The activation of consolidation processes in the banking sector of the country is determined by factors such as: liberalization of the economy, growth of foreign investment, development of capital markets and financial services. Economic cycles are one of the main factors that trigger the development of consolidation processes. Today, the processes of consolidation in the domestic banking sector are at a rather low level. In Ukraine, during the analyzed period, there was no merger of large banks, and the processes of joining and merging medium and small banks are relatively slow, compared with global trends. The process of concentration of bank capital occurred through the absorption of unstable small banks by large or the allocation of unprofitable branches from unstable banks and joining other banks.
Authors and Affiliations
K. D. Shul’ga
Keywords
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