№ 2/2019

Fìnansi Ukr. 2019 (2): 43–57https://doi.org/10.33763/finukr2019.02.043

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

Strengthening the role of banks with state participation in capital in the development of Ukraine’s real economy sector

Performance analysis of the banking system for 2018 year indicates that the system went out of systemic crisis 2014-2015 and gradually began to recover public trust offset by the financial destabilization factor in connection with the nationalization of the country's largest Privatbank. After the nationalization of the largest private bank Privatbank at the end of 2016, the Government of Ukraine, which has more than 50% of the banking market under its direct control, is in a position to conduct a balanced, consistent policy aimed at developing the banking sector of the economy. The article shows that public capital banks are flagships in the sectoral lending to the real economy. The paper analyzes trends in the banking market of Ukraine, namely in sectoral crediting. It is highlighted that the situation with lending in general is improving. Statistics show an increase in the demand of business entities for resources in the euro against the US dollar and the Ukrainian hryvnia. In addition, a paradoxical trend of economic growth without substantial support from the banking sector should be noted. At the same time, the growing volumes of negatively classified assets, which have been shown in the balance sheets of leading state banks in recent times, point to the need to improve the quality of their corporate governance. The authors find it correct to sell minority packages of Oschadbank and Ukreximbank to the international financial institutions. In addition, today Ukrgasbank can be considered a potential bank with state participation for sale to a foreign investor. The article outlines proposals to improve the legislative framework to stimulate lending in the country.

Keywords:banks with state participation in capital, monitoring of banks’ activities, loans to the real sector of the economy

JEL: E22, E52, E58, G21, G28

DROBIAZKO A. . Strengthening the role of banks with state participation in capital in the development of Ukraine’s real economy sector / A. . DROBIAZKO, O. . Lyubich // Фінанси України. - 2019. - № 2. - C. 43-57.

Article original in Ukrainian (pp. 43 - 57)

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