DIAGNOSTICS OF THE CONDITIONS OF THE FUNCTIONING OF THE BANKING SYSTEM OF UKRAINE

Abstract

The article is devoted to the research of analytical indicators characterizing the development of the banking system of Ukraine, a key link that forms the development of the financial system. The tendencies, which ensure the change of the basic indicator of development of the banking system – capital, is generalized. It is concluded that capital represents a small part of GDP. It is determined that a significant decrease in the volume of equity capital of banks is due to a significant reduction in the number of banks in the period after the systemic crisis of 2014-2015. A thorough analysis of the dynamics of assets was conducted. It was concluded that despite the elimination of a number of troubled banking institutions and a significant outflow of client funds, the growth of assets was due to the rapid devaluation of the national currency, which also reflected a significant increase in the balance of foreign currency assets. Nevertheless, the volume of deposits of both the population and the corporate sector (both in hryvnia and foreign currency) in solvent banks shows a tendency to increase. This is evidence of increasing the confidence of business and population in Ukraine's banking system. A high proportion of non-performing loans is identified as a separate problem, which significantly impairs the quality of the banks' balances. It was emphasized on the need for active work with loans of those borrowers whose financial condition is being restored through the active use of financial restructuring mechanisms. The ways of solving the problem of non-working loans are described, for example, by the experience of restructuring the problem debt of JSC CB “Privatbank”, which started solving problems of non-working loans on a "step-by-step" principle. The importance of solving the systemic problem, which intensified after the nationalization of JSC CB “Privatbank” – the ultra-high share of the state in the banking sector, was emphasized. It was specified that the “State Banking Sector Reform Strategy”.