БАНКІВСЬКИЙ СЕКТОР УКРАЇНИ: АНАЛІЗ ЧИННИКІВ НЕПЛАТОСПРОМОЖНОСТІ, БАНКРУТСТВА ТА ЛІКВІДАЦІЇ БАНКІВ

Abstract

The article examines the trends observed in the Ukrainian banking sector, specifically focusing on changes in the number of banks from 1992 to 2023. The factors contributing to the increase in insolvent and bankrupt banks and subsequent liquidation and revocation of banking licenses are analyzed. The study identifies key factors that arise from both internal bank operations in the banking services market and external factors stemming from macroeconomic and political situations. These factors include a significant decline in GDP, currency devaluation, inflation, and military operations within the country. The article discusses the monitoring of current legislation norms that define the criteria for classifying banks as problematic and insolvent by the National Bank of Ukraine. The regulator associates these criteria primarily with internal issues within the bank, such as liquidity standards violations, non-compliance with current legislation and regulatory requirements, and a decrease in regulatory capital. Voluntary and forced liquidation processes are examined within the framework of the current legislation. Voluntary liquidation by bank shareholders allows the bank to maintain its legal entity status. Banks undergoing compulsory liquidation have the option to reorganize through mergers and acquisitions. During the process of cleaning up the banking sector, system banks received substantial government support in the form of financing through bonds. The article argues that the cleansing of the banking system, which took place between 2014 and 2016 and continued in subsequent years, contributed to the stability and efficiency of the banking sector amid the war in Ukraine. The regulator liquidated banks with Russian capital during the hostilities and declared two banks insolvent due to risky operations and failure to repay debts to borrowers. Furthermore, the study concludes that the significant decrease in the number of banks in Ukraine did not impact the growth trend of total assets in the banking system, indicating the sector’s efficiency. Stress testing in three stages is highlighted as a means for determining the actual state of the banking system during times of conflict.