Credit portfolio of Ukrainian banks: analysis of the impact of martial law

Abstract

In 2022 and at the beginning of 2023, the financial system of Ukraine proved its institutional capacity. The results of the banks' activities in 2022 confirm their significant contribution to its stabilization during the period of full-scale Russian aggression. The measures of the monetary authority were more balanced and effective compared to the events of 2014-2015. The current state of the banking system proved the integration of Ukrainian banks into the European financial space. Problem Statement. Systematization of problems and approaches to the strategic development of the banking system in the period of post-war economic recovery and its impact on the general security of money circulation in the country.The given calculations and graphs make it possible to compare the trends in the main markets of banking operations in 2014–2023. Purpose. To assess the current state of dynamics of active and passive operations of Ukrainian banks after the pandemic crisis and in the midst of full-scale Russian aggression, as well as the impact of their activities on the development of the real sector. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The dynamics of changes in the resource base of banks at the expense of legal entities and individuals, as well as their credit and investment portfolios, are presented. The main macroeconomic strategies of monetary policy, which influenced the development of banks in 2014–2023, were considered. The importance of resuming the cooperation of the Government of Ukraine with international financial organizations in 2023 and further institutional development of the banking system was emphasized. Conclusions. The quality of management of the financial sector and the banking segment, in particular in 2022, is higher than in 2014. The bank-centric financial system that has developed in Ukraine should have a long-term strategy for the development of institutions along with a transparent mechanism for evaluating the quality of their management. For the development of the banking system in order to improve the resource provision of the economy, it is necessary to return to the idea of creating a national reconstruction and development bank, a bank of assets damaged and destroyed by the war.