№ 5/2016

Fìnansi Ukr. 2016 (5): 7–0

MONETARY POLICY

MISHCHENKO Volodymyr ¹, NAUMENKOVA Svitlana ²

¹Institute for Economics and Forecasting of the NAS of Ukraine
OrcID ID : https://orcid.org/0000-0002-8565-2686
²Taras Shevchenko National University of Kyiv, Research ID : http://www.researcherid.com/rid/N-5604-2019
OrcID ID : https://orcid.org/000-0001-8582-6044

THE BANKING SYSTEM OF UKRAINE: PROBLEMS OF FORMATION AND DEVELOPMENT

The article explores the processes of formation and development of Ukraine’s banking system in 1991-2016, identifies the main stages and distinctive features of its development, formulates the key problems that impede the effective operation of banks, and outlines their solutions. The negative trends in recent years include: decapitalization of the banking system, a large share of distressed assets, the low volume and imperfect structure of lending to the economy, a high level of its dollarization. The article also identifies priority areas of the development of the domestic banking system, improvement of its stability, efficiency, and competitiveness to ensure macroeconomic stability and support economic growth; it makes a strong case for the need to improve the regulatory and supervisory functions of the National Bank of Ukraine with the aim of ensuring a level playing field for all banks and supporting competition and the sustainable development of the entire system. Drivers of the process and methods of bank consolidation and capitalization, including through the use of M&A and P&A transactions, are described. The article focuses on the improvement of bank rehabilitation and financial restructuring procedures, identifies the main areas of a decline in the share of distressed assets of banks through the use of “bridge-bank” and “bad-bank” mechanisms. The article presents the grounds for a system of measures to improve risk management and corporate governance in banks, broaden the range of banking services, improve their quality, suitability and availability, and also guarantee creditor and depositor protection.

Keywords:banking system, capitalization, consolidation, resource potential, stability, lending, distressed assets, risk management, corporate governance, availability of services.

JEL: E42, E51, E58, G21.

Mishchenko V. . THE BANKING SYSTEM OF UKRAINE: PROBLEMS OF FORMATION AND DEVELOPMENT / V. . Mishchenko, S. . NAUMENKOVA // Фінанси України. - 2016. - № 5. - C. 7-0.

Article original in Ukrainian (pp. 7 - 33)

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