РОЗВИТОК БАНКІВСЬКОГО СЕКТОРУ ЯК КЛЮЧОВОЇ ЛАНКИ ФІНАНСОВОЇ СИСТЕМИ В УМОВАХ ВОЄННОГО СТАНУ

Abstract

The article is devoted to the study of performance indicators of Ukrainian banking institutions under martial law. The banking sector is a key link that ensures the development of the financial system. Therefore, it is important to summarise the current trends in the functioning of the banking system during martial law. The banking industry has faced many challenges, but is still functioning thanks to prompt decisions taken by the National Bank of Ukraine and the authorities. The article examines the new rules and legislative changes to the activities of banks adopted by the NBU after the introduction of martial law. In particular, the discount rate was increased (up to 25%) as one of the most important monetary instruments used by the NBU in implementing its monetary policy. The dynamics of changes in Ukrainian banking institutions is presented. The article monitors lending by domestic banks to other economic entities and the volume of additional resources attracted by banking institutions of Ukraine. It is concluded that despite active military operations and an unstable macroeconomic situation, lending to business entities tends to grow, but there is a slight slowdown in lending to households. Deposits from both households and the corporate sector are also growing. This demonstrates the confidence of businesses and households in the banking system, despite the difficult economic situation in Ukraine. The article identifies a problem in the active operations of domestic banks, in terms of the share of non-performing loans, with a deterioration in the value of this indicator. The author analyses the volumes of income and expenses, which tend to grow. During the war, the profit of Ukrainian banks decreased by 3 times compared to the previous year. The indicators of profitability on assets (ROA) and capital (ROE) of Ukrainian banks were studied. Currently, there is a decrease in their value, which is not positive. The reason for the decline in bank profitability was the increase in provisioning due to the incurred and expected losses as a result of the war. Further prospects for the development of the domestic banking sector in the context of war are outlined.