The Underlying Causes of Imbalances in the National Economy in the Context of Development of the Domestic Banking Sector

Journal Title: Бізнес Інформ - Year 2016, Vol 4, Issue

Abstract

The worsening financial crisis in Ukraine and laborious work to overcome its effects have heightened relevance of studying the imbalances that have arisen in the national economy. Today, an especially topical focus of scientific research is the search for effective financial tools for the State regulation of the financial market and economy of the country in general. The domestic banking sector is the most vulnerable institution in case of imbalances arising in the economy. Therefore, particularly relevant is studying the issue of increasing the efficiency of banks' activities in the domestic financial market and accomplishing the functions of agents of the integrated system for both the currency regulation and the currency control. With this in mind, the author of the article analyzes the economic and political causes of devaluation of the national currency in 2014-2016, imbalances in the national economy and their impact on the currency fluctuations and on crediting by Ukrainian banks. The actions, taken by the NBU to overcome devaluation, were examined, among which the stabilization of the exchange rate fluctuations, the capitalization of banks and the creation of conditions for investing in Ukraine. A substantiation for practical recommendations on improving the functioning and efficiency of the activities by banks in the currency market of Ukraine to ensure financial stability in the country has been carried out.

Authors and Affiliations

Svitlana Marhvinska

Keywords

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  • EP ID EP96103
  • DOI -
  • Views 94
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How To Cite

Svitlana Marhvinska (2016). The Underlying Causes of Imbalances in the National Economy in the Context of Development of the Domestic Banking Sector. Бізнес Інформ, 4(), 239-243. https://europub.co.uk/articles/-A-96103