Abstract
In the modern market models state banking system plays the most significant role in the functioning of economic mechanism. It ensures control of total money supply, regulates movement of cash flows, and realizes accumulation and investment of financial resources, crediting different trades and people.
 In transition from socialist model of economics to market economy a precondition for the start of reformation of economic relations is multi-branch state banking system.
 In the beginning of 1990-s creation of such banking system began in Ukraine. However, crisis situation in economics that developed in 2008 has shown how imperfect and unadapted to the regularities of market economy was banking system in Ukraine.
 Now Ukrainian economics like world economy is recovering. However, the problem of growing treasury deficit and national debt becomes issue of the day for the Government as drastic, not predicted variations of foreign currency are able to make an impact on loan market.
 The article describes history of building Ukrainian banking system starting from market reforms. It gives analysis of the reasons that have caused collapse of the banking system under conditions of the global economic crisis of 2008. It also evaluates prospects for further development of banking sector in Ukraine.
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