The Banking System of Ukraine as Part of the Financial Market

Abstract

The aim of the article is to study the banking system of Ukraine as part of the financial market. An analysis of macroeconomic indicators, based on data from the National Bank of Ukraine and the Ministry of Finance of Ukraine, is carried out. It is found that today the development of the banking sector of Ukraine is largely conditioned by economic growth of the country and the situation in international financial markets. It is proved that improving the quantitative and qualitative features of the development of the financial sector as a whole is an important condition for state regulation of the financial system of Ukraine, preceding the adoption of effective and adequate management decisions aimed at searching for approaches and appropriate methods, with regard to challenges posed by the external financial environment, at the stage of integration processes. It is justified that the Ukrainian banking sector is gradually integrating into the international banking system and is forming its own development model, which should fully realize Ukraine’s potential in financial globalization. There highlighted the trends in the banking industry of Ukraine: restoration of profitable activities of banks (in the system in general); increase by the National Bank of the discount rate, which led to a growing attractiveness of investment in government bonds and NBU certificates of deposit; slow pace of business lending; rapid development of consumer lending. It is concluded that a tight monetary policy, restrained fiscal policy, forecasted decrease in the grain harvest and decline in the volume of international trade, in particular, as a result of protectionist measures, can be considered the main levers of maintaining economic growth in 2019.

Keywords

• banking system
• financial market
• financial environment
• monetary policy
• fiscal policy
• macroeconomic indicators