Social-economic principles of the public trust to the bank sector
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2016, Vol 2, Issue
Abstract
The features of modern economic development of Ukraine and totality of those negative phenomena, which affect organization of money-and-credit relations, are considered. Institutional principles of forming of trust to the bank sector nave been investigated from the point of view of reliability of functioning of commercial banks and providing the national currency stability. Basic directions of providing society trust to the banks as institutes of financial market are formulated taking into account that they must be based on effective activity of central bank as a main regulator. It is indicated on the lacks of modern policy of the National bank, related to the leading out from the market a lot of bank institutions and loss of their assets. Priorities of activity of the National bank of Ukraine in relation to organization of effective bank supervision, hard control after a percent and credit policy, creation of sanative bank as directions which serve as the guarantee of stable work of bank institutions are defined. It is grounded the untimely measures of the National bank in relation to passing to the mode of inflationary targeting and abandonment from the rate of exchange regulation as factors of row of national currency stability decline of trust to the bank sector from the society. The article analyzed the low efficiency of choosing the aims of the National Bank monetary policy in terms of loss of control over inflation and exchange rate dynamics, the outflow of deposits from banks, increasing the share of bad loans and losses of commercial banks. It has determined causality negative impact of three-time devaluation on the banking sector, which was a factor in undermining the credibility of the public and a factor of no confidence in the national currency savings as an object that turned the main reason for the massive outflow of deposits from the banking system. The measures of stabilizing of situation in the money market in order to enhance public confidence in the national currency, and consequently to banking institutions in the country are offered.
Authors and Affiliations
Oleksandr Dzyublyuk
Keywords
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