Banking system of Ukraine in the conditions of war

Gudz Tetiana
professor of the Department of Finance and Banking, Doctor of Economic Sciences, Professor, Poltava University of Economics and Trade, Poltava, E-mail: gtp9@ukr.net, ORCID ID: https://orcid.org/0000-0002-2310-5425

Herchikov Maxim
PhD student Poltava University of Economics and Trade, Poltava, E-mail:geru4444444@gmail.com, ORCID ID: https://orcid.org/0000-0001-7588-4144

Cite this article:

Gudz T., Herchikov M. (2023) Banking system of Ukraine in the conditions of war. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Bankivska systema Ukrainy v umovakh viiny; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 1-2 (302-303), pp. 53-58.

Abstract

The main purpose of this article is the study of Ukraine banking system state in dynamics during the war in order to assess the likely prospects for the development of the banks' activities, which are key for the economy. The task of the research: to reveal the signs of stability and instability of the banking system of Ukraine, to determine the vector of development of the monetary policy of the National Bank of Ukraine, to give a picture of the expected changes in the activity of banks for the orientation of Ukrainian business in the options for making financial decisions. To achieve the objectives in this article,the general scientific and special methods used. They are: dialectical approach, logical approach, methods of induction and deduction, as well as methods of processing series of dynamics. The results of the analysis of the main indicators of the banking system of Ukraine characterize its stability and signs of recovery of positive trends. The following indicators of the stable functioning of the banking system of Ukraine in wartime conditions were identified: a sufficient level of capitalization, preservation of the funding of funds of legal entities and individuals, restoration of the profitability of banks, maintenance of liquidity and provision of uninterrupted banking service for settlement operations. The main tools of economic development support from the banking system have been identified. The credit policy of banks has a significant impact on the economy. It provides a balanced approach to credit risk assessment and the continuation of credit restructuring programs. Banks support balanced implementation of the state budget. They actively participate in auctions for the purchase and sale of domestic state loan bonds. The National Bank regularly carries out currency interventions and increases international reserves to maintain the exchange rate. The expansion of international cooperation of the banking system of Ukraine is aimed at the development of the niche of Ukrainian state securities denominated in hryvnia, as well as other financial instruments for post-war recovery. lies in the outline of likely changes in bank credit policy, as well as elements of the monetary policy of the National Bank of Ukraine, which are guidelines for business and form key indicators of financial and economic stability in the state. Among them: increased requirements for potential borrowers, increase in the price of financial resources under conditions of increased risks, active servicing of public debt, promotion of increased demand for the Ukrainian hryvnia.

Keywords

banks, system, risks, loans, capital, government bonds, international reserves, interest rate, exchange rate.

JEL classification: G210, E590; DOI: 10.32680/2409-9260-2023-1-2-302-303-53-58

UD classification: 336.71.025.13

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