THE ANALYSE OF THE BANKING SYSTEM WORK EFFICIENCY IN UKRAINE

Abstract

. An analysis of situation in the banking system revealed a number of systemic problems, the solution of which requires careful study. A number of problems are a consequence of the policy of the regulator, others a consequence of changes in the global financial markets and processes in the world economy. The substitution of a national currency unit with a convertible foreign currency has been a result of the decrease in the purchasing power of the national currency. It influenced on currency ability to be a full-value currency. Against the background of currency fluctuations, the banking system faces a shortage of resources. In the capital structure of Ukrainian banks, a significant proportion falls on deposits of individuals, the outflow of which and the massive population buying up of a cash dollar became an unresolved problem. banks the price of credit the the of individual’s loans amount can influents on the purchasing power in certain sectors of the economy, it does not contribute to an increase in business activity in the whole system. It is necessary to increase the availability of funding for priority sectors of the economy, lending long-term infrastructure projects, supporting small and medium-sized businesses in industries with high administrative burdens, lending to exports and trade. In general, the downward trend in the number of banking institutions can be recognized, as positive, if this trend leads to an increase in the performance indicators of the banking sector, as well as a balanced and reasoned policy of the National Bank of Ukraine. Otherwise, such actions of the state regulator only undermine confidence in the entire banking sector of Ukraine. Restructuring of problem loans can be a starting point in improving the banking system, but the changes should primarily affect changes in currency restrictions, exchange rate regulation, and adjustments to the legal field in which second-tier banks operate.