MONETARY POLICY

STAVYTSKYI Andrii ¹

¹Taras Shevchenko National University of Kyiv

Conditions of banking system stabilization in Ukraine at the current stage

The problems of Ukrainian banking sector negatively affect the entire economy of the state. Significant political and economic developments in 2014 largely determined the negative trends that raised not only the question of the financial system stability, but the opportunity to survive and preserve its main assets. The fall in confidence, outflow of deposits, significant devaluation of Hryvnia, GDP decline and increase in banks’ refinancing have created extremely difficult conditions to restore the volume of deposits in banks. The paper deals with development and analysis of models to determine the most important factors that describe the household behavi­our and to define the time required to restore confidence to the banking system. It is shown, that it is necessary at least one month of a stable exchange rate to restore the volume of deposits in Hryvna, and four months for foreign currency deposits.

Keywords: banking system, devaluation, deposits, interest rate, financial system, econometric model.

JEL: G50, G51, G52.

STAVYTSKYI A. . Conditions of banking system stabilization in Ukraine at the current stage / A. . STAVYTSKYI // Фінанси України. - 2015. - № 1. - C. 47-58.