MONETARY POLICY

DROBIAZKO Anatolii ¹, LYUBICH Oleksandr ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-0453-0709
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242

Monitoring of the state banks’ market position

The article is dedicated to analysis of the state banks’ ability to hold functional capacity of financial system in the special period. Against the backdrop of unfinished conflict in the East of Ukraine in the first quarter of 2015, the authors have identified several negative macroeconomic processes in banking system, as: sharp devaluation of the national currency and high increases in prices on consumer market, as well as on commodity producers market. Banks have reduced lending in real terms both for individuals and business entities, while the process of demonetization of real economy was proceeding. In the first quarter of 2015, banks that formed reserves for loan impairment on operations in the area of the ATO and Republic of Crimea have shown the greatest losses in their history. The article presents the results of the sectorial analysis of current processes of attracting and placing funds by banks from individuals and business entities, as well as from the NBU. The authors have considered processes in the market of Ukrainian sovereign bonds, as well as access of banks to capital, and it is provided comparative analysis of business opportunities for banks with state capital and banks with Western capital, Russian capital and the largest banks with private Ukrainian capital. It is made a reasonable conclusion that banks with state capital are able to keep the banking system in this special period. The authors have made a proposal for further institutional development of management culture in state banks: creation of single coordinating body to control the interest rate policy of banks with state capital in the structure of the Ministry of Finance of Ukraine.

Keywords: state banks, banks’ monitoring , special period.

JEL: G20, G21, G28.

DROBIAZKO A. . Monitoring of the state banks’ market position / A. . DROBIAZKO, O. . Lyubich // Фінанси України. - 2015. - № 5. - C. 39-54.