THE ROLE OF THE COMMERCIAL BANKS' CAPITAL IN REALIZATION OF INVESTMENT POTENTIAL OF BANKING SYSTEM OF UKRAINE

Abstract

The regulatory capital of bank plays an important role not only in the core activities of the bank, but also contributes to the goals of the investment potential of the national economy. Amid financial crisis in the national economy, banking liquidity crisis and undermined confidence in the domestic financial institutions, the regulatory capital actually remains the ultimate long-term financial resources for domestic banks, which can be used for long-term investment in the national economy. Maintaining the appropriate level of capital adequacy and ensuring its positive trend, banks are able to monitor and control risks that arise during active and passive operations. We believe that introduction by the National Bank of Ukraine in 2014 of new regulatory capital threshold of 500 million hryvnia is an important step towards increasing the capitalization of the banking system of Ukraine and stabilization of its resource base.

Authors and Affiliations

Igor Lyutiy, Nataliia Shpygotska

Keywords

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  • EP ID EP400352
  • DOI 10.17721/1728-2667.2015/167-2/4
  • Views 51
  • Downloads 0

How To Cite

Igor Lyutiy, Nataliia Shpygotska (2015). THE ROLE OF THE COMMERCIAL BANKS' CAPITAL IN REALIZATION OF INVESTMENT POTENTIAL OF BANKING SYSTEM OF UKRAINE. Вісник Київського національного університету імені Тараса Шевченка. Економіка., 2(167), 24-29. https://europub.co.uk/articles/-A-400352