ОСОБЛИВОСТІ ФУНКЦІОНУВАННЯ БАНКІВСЬКОЇ СИСТЕМИ УКРАЇНИ В УМОВАХ КОРОНАКРИЗИ

Abstract

The article considers the peculiarities of the functioning of the banking system in the corona crisis conditions. The banking system is a component of the country's financial system, through which the mobilization and attraction of financial resources and money into economic circulation, as well as lending to the economy and ensuring financial stability. In the context of the economic crisis caused by COVID-19, the study of the current state of the Ukrainian banking sector, the role of the National Bank of Ukraine in the stabilization and further development of the banking system becomes especially important. The banking sector of Ukraine functioned stably in the conditions of the corona crisis in 2020. This was possible due to the fact that work was carried out to increase the stability of the banking system in previous years, as well as due to the timely response of the National Bank and banks, which was aimed at overcoming the negative effects of the pandemic. The National Bank has expanded the scope and simplified the mechanisms for maintaining liquidity by banking institutions. Sufficient liquidity of banks allowed to maintain the confidence of depositors and to continue the process of lowering deposit rates and lowering interest rates on loans, to continue lending to the economy despite high credit risks. The coronary crisis worsened the financial condition of Ukrainian banks. The profit of the banking sector in 2020 was 29.2% lower than in 2019. The main reason for the deterioration of the financial result of the banking sector in 2020 was the formation of provisions for expected losses. Some banks had a decline in asset quality due to the financial difficulties of borrowers. However, the analysis of the performance of Ukrainian banks showed that the size of banks' capital and liquidity ratio are at a fairly high level, which creates good prospects for the banking system in the future. The functioning of banks is influenced by the digitalization of banking services and internal processes. In the future, those institutions that will be able to adapt as quickly as possible to the remote and online mode and move to a digital paradigm of customer service will retain their positions or become leaders in the banking sector.