TRANSFORMATION OF INSTITUTIONS OF THE EU BANKING SYSTEM: OPPORTUNITIES FOR UKRAINE

Abstract

The EU banking system is a model in legal regulation and administrative activity for many countries, including Ukraine. However, crisis problems do not bypass the European and Ukrainian banking systems. The upheavals of the banking system in 2007-2009, which took place in European countries (primarily in the Eurozone countries), made us think about the need for certain radical reforms. In recent years, European banks have been recovering from the crisis. At the same time, the main attention was paid to streamlining the balance sheets, compliance with new regulatory requirements and abandoning unprofitable business lines. The consequence of this was a noticeable drop in their market capitalization, a decrease in profitability. That is why the authors in their study carry out a detailed analysis of the transformational changes in the banking system of EU member states, EU member states outside the euro zone, EFTA member states and the United Kingdom and associated members of the EBF. The work also included an analysis of the banking system of Ukraine. It was revealed that the crisis of 2014-2015 was the biggest test for the Ukrainian banking system. It was at this time that the National Bank of Ukraine failed to fulfill its main function of ensuring price stability. It was established that Ukraine has an underdeveloped banking system dominated by state-owned banks. It was established that Ukraine has an underdeveloped banking system dominated by state-owned banks. Most of the insolvent banks were closed in the period 2014-2017, which enabled the banking system of Ukraine to withstand the shock of the Russian invasion. Taking into account the experience of the transformation of the EU banking system and Ukraine obtaining the status of a candidate for membership in the European Union, a number of measures were formed in the work regarding the obligations and tasks of the banking system of Ukraine on the way to its European integration. Among them, the following should be highlighted: reforming the legislation in the field of financial services to EU law; expansion of cooperation with European institutions; accession of Ukraine to the Single Euro Payments Area (SEPA); changing the role of the National Bank in the European integration process; participation in the review of the list of European integration draft laws; strengthening of cross-sectoral interaction with the Government of Ukraine; fulfillment of all EU conditions.