Issued since 1995
Welcome to the Finance of Ukraine site (demo).
Login | Register
ACADEMY
OF FINANCIAL
MANAGEMENT
.


№ 9/2022

№ 9/2022

Fìnansi Ukr. 2022 (9): 39–52
https://doi.org/10.33763/finukr2022.09.039

MONETARY POLICY

DROBIAZKO Anatolii 1, LYUBICH Oleksandr 2, KAMINSKA Olena 3, BORSHCHUK Oleksandr 4

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
3SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-5859-5623
4SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-3960-6240


The mission of banks with state participation in the capital in recovering the economy


Introduction. The global pandemic crisis of 2019-2021 and the war of 2022 have exacerbated problems in the economy. In the extreme conditions of martial law, the domestic financial system demonstrated its institutional capacity, prevented a panic among creditors and kept the country's money circulation stable. In addition, millions of forced migrants were provided with the opportunity to pay in Europe with payment cards issued by Ukrainian banks in hryvnia.
Problem Statement. Current risks of the global financial crisis and the role of state-owned banks in supporting the economic growth in the conditions of martial law and the post-war recovery of Ukraine's economy.
Purpose. The goal is to provide proposals for neutralizing negative economic phenomena in the country and to justify changes to the development strategy of banks with the participation of the state in the capital.
Methods. The research is based on the identification of patterns of the financial sector development as a whole and the banking system in particular; systemic approach - when clarifying interrelationships between its institutions; statistical comparisons and groupings, analysis and synthesis - in the process of researching monetary environment, forming and placing the resource potential of banks.
Results. The main problems in the world economy and how they affect the current situation in Ukraine are considered. To a large extent, the capacity of the financial system has been achieved thanks to the market behavior of banks with the participation of the state in the capital (hereinafter - BDK), which occupy dominant positions on the market. The question of their role and place in the post-war reconstruction economy is of importance.
Conclusions. It is expedient to expand the BDK network to the municipal level. In order to increase the liquidity of banks, the creation of a state company to work with negatively classified assets that were damaged as a result of military operations is justified. Changes are proposed in a number of provisions of the BDK development strategy until 2025. In order to generate a long-term credit resource, there is a need to establish a national bank for reconstruction and development through the restructuring of one of the BDKs, as well as the Company for the management of negatively classified assets to clean up the balance sheets of the BDK. The government’s investment activity is expected to increase in order to develop priority programs in the defense, energy and infrastructure sectors.

Keywords:banking system, monetary policy, state-owned banks, public-private partnership, inflation targeting

JEL: E50, E52, E58, G21


DROBIAZKO A. . The mission of banks with state participation in the capital in recovering the economy / A. . DROBIAZKO, O. . Lyubich, O. Kaminska, O. Borshchuk // Фінанси України. - 2022. - № 9. - C. 39-52.

Article original in Ukrainian (pp. 39 - 52) DownloadDownloads :56
1. Kirieiev, O. I., Shapovalova, M. M., & Hrebenyk, N. (Eds.). (2005). Issues of the functioning and improvement of the infrastructure of the stock market of Ukraine (Informative and analytical materials). Kyiv: Center for Scientific Research of the NBU [in Ukrainian].
2. Bortnikov, G., Lyubich, O., & Drachko-Yermolenko, Ie. (2020). Ways of post-crisis recovery of banking institutions. RFI Scientific Papers, 4. C. 5–17 [in Ukrainian]. doi.org/10.33763/npndfi2020.04.005
3. Grytsenko, A. (2021). Institutional principles of social trust in the context of fiscal and monetary security. Finance of Ukraine, 7, 7–30 [in Ukrainian]. doi.org/10.33763/finukr2021.07.007
4. Drobiazko, A. (2020). Asymmetric impact of cash flows between the real and banking sectors on monetary regulation in the context of national security. Finance of Ukraine, 11, 56–75 [in Ukrainian]. doi.org/10.33763/finukr2020.11.056
5. Drobiazko, A., & Oliinyk, D. (2020). Behavioral response of households to monetary policy in the context of Ukraine's national security. RFI Scientific Papers, 4, 18– 33 [in Ukrainian]. doi.org/10.33763/npndfi2020.04.018
6. Iefymenko, T., Lovinska, L., Oliynyk, Ya., & Kucheriava, M. Practical commentary on preparing management report and disclosure of COVID-19 pandemic impact. Finance of Ukraine, 6, 7–28 [in Ukrainian]. doi.org/10.33763/finukr2021.06.007
7. Korablin, S. (2021). Monetary security: some definitions and assessments. Finance of Ukraine, 1, 7–45 [in Ukrainian]. doi.org/10.33763/finukr2021.01.007
8. Lyubich, O., Bortnikov, G., & Shulga, N. (2020). Independence of the central bank as a monetary policy authority. Finance of Ukraine, 11, 35–55 [in Ukrainian]. doi.org/10.33763/finukr2020.11.035
9. Pavliuk, K., Klymenko, K., & Savostianenko, M. (2020). Some aspects of the development of research in the world and in Ukraine in the context of the impact of the COVID-19 pandemic. Finance of Ukraine, 12, 59–82 [in Ukrainian]. doi.org/10.33763/finukr2020.12.059
10. Sharov, O. (2020). Problems of monetary sovereignty formation of Ukraine. Finance of Ukraine, 11, 7–34 [in Ukrainian]. doi.org/10.33763/finukr2020.11.007
11. Auzan, A. A. (2020). The Economy Under the Pandemic and Afterwards. Population and Economics,4 (2), 4–12. doi.org/10.3897/popecon.4.e53403
12. Stiglitz, J. E. (2020, March 9). Plagued by Trumpism. Project Syndicate. Retrieved from www.project-syndicate.org/commentary/trump-coronavirus-failure-of-small-government-by-joseph-e-stiglitz-2020-03.
13. Bedianashvili, G. (2021). Macroeconomic and Cultural Determinants of the COVID-19 Pandemic Crisis. Bulletin of the Georgian National Academy of Sciences, 15 (2), 155–161. doi.org/10.2139/ssrn.4228000
14. Mischke, J., Woetzel, J., Smit, S., Manyika, J., Ramaswamy, S., Birshan, M. et al. (2021). Will Productivity and Growth Return After the COVID-19 Crisis? McKinsey Global Institute. Retrieved from www.mckinsey.com/industries/public-and-social-sector/our-insights/will-productivity-and-growth-return-after-the-covid-19-crisis.
15. Stiglitz, J. E. (2022, January 10). Argentina’s COVID Miracle. Project Syndicate. Retrieved from www.project-syndicate.org/commentary/argentina-covid-economic-miracle-by-joseph-e-stiglitz-2022-01?barrier=accesspaylog.
16. Hoshi, T. (2006). Economics of the Living Dead. The Japanese Economic Review, 57 (1), 30–49. doi.org/10.1111/j.1468-5876.2006.00354.x
17. Krugman, P. (2020). Arguing with Zombies: Economics, Politics and the Fight for a Better Future. New York: W.W Norton & Company.
18. Passaris, C. E. (2021). The Moral Dilemma and Asymmetric Economic Impact of COVID-19. Real-World Economics Review, 95, 62–70. Retrieved from www.paecon.net/PAEReview/issue95/Passaris95.pdf.
19. Krugman, P. (2022, January 25). Inflation and the Power of Narrative. The New York Times. Retrieved from www.nytimes.com/2022/01/25/opinion/inflation-economy.html.
20. Sachs, J. (2021, November 13). US Can Fight Inflation and Still ‘Build Back Better. CNN. Retrieved from edition.cnn.com/2021/11/13/opinions/us-can-fight-inflation-buildback-better-sachs/index.html.
21. Roach, S. S. (2022, January 24). The Fed Is Playing with Fire. Project Syndicate. Retrieved from www.project-syndicate.org/commentary/federal-reserve-mad-scramble-to-control-inflation-by-stephen-s-roach-2022-01?barrier=accesspaylog.
22. Stiglitz, J. E. (2022, February 7). A Balanced Response to Inflation. Project Syndicate. Retrieved from www.project-syndicate.org/commentary/inflation-causes-and-targeted-solutions-by-joseph-e-stiglitz-2022-02?barrier=accesspaylog.
23. Charaia, V., & Papava, V. (2021). Public Debt Increase Challenge Under COVID-19 Pandemic Economic Crisis in the Caucasian Countries. Journal of Contemporary Issues in Business and Government, 27 (3), 18–27. doi.org/10.47750/cibg.2021.27.03.003
24. Lyubich, O. O., Bortnikov, G. P., & Drobyazko, A. O. (2021). Comparative analysis of state-owned banks’ role in the economy of eastern Europe countries and Ukraine. Financial and Credit Activity Problems of Theory and Practice, 1 (32), 57–64. doi.org/10.18371/fcaptp.v1i32.200286