Trends of development of banking system in Ukraine
Denys O.B. , Candidate of Economics Sciences, , Lviv Institute of Banking SHEE "University of Banking"
Випуск №88. Частина 2
The purpose of the article is studying trends in the banking system: dynamics of creating banks, processes of bank failures, structure of the resource base, areas of investment and return on investment.
It is shown that in the history of national banks 2014-2015 were the most difficult.
It is noted that complication of the political situation, decline in GDP, depreciation of the national currency and inflation adversely affect indicators of the banking system of Ukraine.
Based on the statistical analysis there is the conclusion about the largest in the history of the Ukrainian banking sector mass bank bankruptcy (number of banks during the crisis fell to 120 banks; compared with 2012 the reduction was 25%).
It is shown that increasing the overall resource base of banks despite the bankruptcy was due to increasing authorized capital of banks in accordance with the requirements of the NBU, and because of devaluation of the national currency.
It is noted that in general, the banking system during the crisis lost about a third of deposits compared with 2012. It is indicated that due to the general deterioration of the economy, increasing demand for working capital and lack of state guarantees for the return of deposits of legal entities in case of bankruptcy of banks, there is no interest of both physical and legal entities to the storage of available resources in banks.
Crediting volumes by banks of individuals and legal persons and it is noted that they were significantly reduced due to decreasing in the creditworthiness of borrowers and decreasing banks’ resources are considered.
It is shown that the general efficiency indicators of the banking system (the common result of the activity, return on assets and return on equity) have a negative value.
It is concluded that at the current stage of development the banking system of Ukraine is experiencing crisis trends.
Negative trends of development of the Ukrainian banking system identify three groups of causes, namely deterioration of the economic and political situation in the country as a whole, inadequate risk management at the level of individual banking institutions, shortcomings of the regulatory activities of the NBU.
It is concluded that in the short term solution of problems of the banking system will depend on the stabilization of the economic situation in the country as a whole and on the regulatory policy of the central bank aimed at realizing standards of transparency of the banking system, improving deposit guarantee system and banking supervision.
bank, banking system, banking crisis, credits, deposits, bank’s regulation.