EVALUATION OF THE FOREIGN EXCHANGE REGULATION’S INFLUENCE IN UKRAINIAN BANKS' CREDIT ACTIVITY
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 1, Issue 57
Abstract
The article analyzes the situation in the bank's credit market in Ukraine during the last decade and evaluates the factors that led to the development of appropriate negative trends in the economy of the state. The author analyzed the role and importance of the rate of required reserves of the National Bank of Ukraine for the development of credit activity of the authorized banks, traced its dynamics in 2003-2016. Based on the evaluation of data regarding the target and the actual ability of the banking system to the non-cash issue by the credit mechanism the fallacy and inadequacy of NBU's decisions was demonstrated with respect to that instrument of monetary and foreign exchange regulation. In particular, the extremely negative impact on the credit market conditions influenced the Resolution No 820, adopted by the NBU Government in late 2014, which has changed the philosophy of the regulations in force and thereby minimized its functionality. It is analyzed dynamics, composition and structure of credit and deposit operations of Ukrainian banks, to assess the significance of operations exactly in foreign currency. The analysis showed that the proportion of foreign currency loans has increased significantly over the past decade, indicating the threat to stability throughout the financial system. The author has been proven exist in Ukraine in 2006-2016 the credit expansion and even credit boom in foreign currency, given the threats generated by these economic phenomena. The conclusions were illustrated by the analysis of the rapid downsizing of operating banking institutions and uncontrollable increase in the share the foreign capital in the banking system of Ukraine. As a result, it was noted that the main factors of development of the credit boom were either mismanagement of NBU in the field of monetary and foreign exchange regulation, and aggressive expansion of foreign capital in the capital market of Ukraine.
Authors and Affiliations
S. A. Sheludko
Keywords
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