№ 11/2018

Fìnansi Ukr. 2018 (11): 76–105

MONETARY POLICY

DROBIAZKO Anatolii ¹, BESPALYI Serhii ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-0453-0709
²The Ukrainian society of financial analysts

The role of banks with state capital in the development of the real sector of economy of Ukraine

After the nationalization of the largest private bank Privatbank at the end of 2016, the Government of Ukraine, which have 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. At the same time, the growing volumes of negatively classified assets, which are shown in the balance sheets of leading state banks in recent times, point to the need to improve the quality of their corporate governance. A deep financial, economic and monetary crisis, which aggravated in 2014-2016, raises the question of using new instruments for the institutional development of the financial, banking and monetary system that would be able to transform the negative phenomena in the functioning of money, financial and credit markets. The article focuses on the development of banking business (2st half of 2018), comparing the dynamics of development of banks with state capital with banks having parent structures in the the Russian and western financial world. The article analyzes the credit activity of banks in the various sectors of the real economy of Ukraine. The article provides analytical statistical material on trends in the deposit market and loans to legal and natural persons. The paper analyzes the tendencies in the banking market of Ukraine, including the dynamics of interest rates for the main indicators of assets and liabilities. The article proposes to improve the legislative framework for banking business. To overcome the negative effects, a number of laws to protect the rights of creditors should soon be adopted. As it is emphasized, there is a general tendency to improve the situation in the banking sector. The real performance of state-owned banks points to the need to improve the corporate governance system of state banks. The authors find it appropriate 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.

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

JEL: E22, E52, E58, G21, G28

DROBIAZKO A. . The role of banks with state capital in the development of the real sector of economy of Ukraine / A. . DROBIAZKO, S. Bespalyi // Фінанси України. - 2018. - № 11. - C. 76-105.

Article original in Ukrainian (pp. 76 - 105)

Download

Downloads :507

1. Bilorus, O. H., Iefymenko, T. I. (Eds.). (2015). Financial globalization and European integration. Kyiv: DNNU “Akademiia finansovoho upravlinnia” [in Ukrainian].
2. Oparin, V. M., Fedosov, V. M. (Eds.). (2016). Financial infrastructure of Ukraine: state, problems and prospects of development. Kyiv: KNEU [in Ukrainian].
3. Arzhevitin, S. M., Unkovska, T. Ye. (Eds.). (2017). Systemic crisis of the banking sector of Ukraine and the strategy of overcoming it. Kyiv: KNEU [in Ukrainian].
4. Yurchyshyn, V. (Ed.). (2017). Challenges and risks of deployment of crisis processes in Ukraine and directions of economic policy of their prevention. Kyiv: Zapovit [in Ukrainian].
5. Shlapak, O. V., Iefymenko, T. I. (Eds.). (2014). Modernization of the financial system of Ukraine in the process of European integration (Vol. 2). Kyiv: DNNU “Akademiia finansovoho upravlinnia” [in Ukrainian].
6. Liubich, O. O., Bortnikov, H. P., & Panasenko, H. O. (2016). Analysis business model of state banks in Ukraine. Finance of Ukraine, 10, 7–38 [in Ukrainian].
7. National Bank of Ukraine. (n. d.). Banking system indicators. Retrieved from bank.gov.ua/control/uk/publish/article?art_id=34661442&cat_id=34798593 [in Ukrainian].
8. Kisliak, R. (2014, November 14). Does Ukraine need a development bank. League-Inform. Retrieved from finance.liga.net/banks/2014/11/18/articles/40963.htm [in Russian].
9. Struk, T. (2014, December). Role, tasks and functions of national development banks. Bank Bulletin Magazine, pp. 42–47 [in Russian].