FORMS OF MANIFESTATION AND METHODS OF REGULATION OF THE BANKING CRISIS IN UKRAINE

Abstract

The banking system is the core of the financial sector. It is crucial to examine that crises in banking systems are largely consequences of macroeconomic and political instability. Understanding the nature of banking crises allows developing adequate preventive measures and instruments for timely reaction of regulators and banks themselves to the crisis. With the intensification of globalization processes in the world, the number and scale of banking crises have increased significantly, including due to the presence of various external shocks, including the so-called "contagion effect", the essence of which is a chain reaction in global and national financial markets, when a shock in one of them leads to a shock in another. Along with the growth of the number of banking crises and their scale, the losses from them grow the economy. Thus, the problem of anticipation of banking crises and methods of their regulation is extremely relevant and represents an important scientific task. The aim of the paper is to identify and explain the causes of modern banking crises and methods of their regulation. The study was conducted using an interdisciplinary and integrated approach to a wide range of transformations and phenomena that have long dominated the public life of the country and encompass various types of economic activity and specific natural processes. The article reveals the concept of banking crisis, the classification of modern banking crises. Also, the analysis of the state of the banking system during the quarantine period and before it began, highlighting the main indicators of Ukrainian banks. Three main types of situations that contribute to the emergence of banking crises are identified. The causes and prerequisites of a large number of banking crises in the late twentieth and early twentieth century and the twenty-first century are described. The first-priority measures to neutralize threats to the security of the banking system as part of the implementation of the anti-crisis management scheme have been proposed. The instruments of anti-crisis policy of the National Bank are presented in their improved form for managing systemic banking crises and overcoming their consequences. At the end, the results of this article are summarized.

Keywords

• crisis
• bank
• loans
• deposits
• financial system
• management
• regulation