Abstract
The formation and functioning of the country’s financial system depend on many factors, both endogenous and exogenous. The economic system of a country, as a higher-order system in relation to the financial one, underlies the development of the financial system model. The existing model of the financial system becomes significant in the context of its impact on economic processes in the country. The main purpose of the empirical analysis is to confirm the thesis about the signs of the bank-centricity of the Ukrainian financial market. The share of assets of financial intermediaries in GDP is determined, which indicates a significant decrease in the share of assets of all financial intermediaries in Ukraine. Analysis of the loan-to-deposit ratio in the banking system of Ukraine shows that the deposit base was far smaller than the size of loans throughout the analyzed period. Analysis of non-performing loans by economic sectors shows that the largest share of NPLs is formed in the corporate sector of the economy. Analysis of the structure of banks’ assets, taking into account their owners, shows that at the end of the analyzed period the share of state-owned banks’ assets increased significantly. Thus, having analyzed the functioning of the banking system of Ukraine, one can conclude about the bank-centric nature of Ukraine’s financial system.
Highlights
In advanced market economies, the concepts of “financial system” and “financial market” are considered as analogues
The development of the financial market reflects the flexibility of the financial system and the speed with which it can adapt to changes in the economic and political life of the country, as well as to various processes taking place outside of it (Nikolyshyn & Zizyak, 2014)
Banking system in the development of the economy was more understandable, including for the population, and taking into account highly skilled specialists from the National Bank of Ukraine, who developed the main legislative documents To confirm the thesis about the signs of bank-cenregulating the functioning of banks in Ukraine, tricity of the financial market in Ukraine, the the financial system model, based on banks as share of assets of financial intermediaries in GDP
Summary
The concepts of “financial system” and “financial market” are considered as analogues. Many scholars, such as is based on the privatization process, which was Gerschenkron (1962), Diamond (1984), Stiglitz the basis of the formation of the country’s stock (1985), Boyd and Prescott (1986), Bencivenga market This had both a positive and a negative and Smith (1991), Bhide (1993), Stulz (2002), and effect on further development. Vatization, there was an exchange of privatization According to this approach, banks perform the certificates for enterprises’ shares, which formed function of reducing information asymmetry and the basis for the emergence of the stock market. Banks perform the certificates for enterprises’ shares, which formed function of reducing information asymmetry and the basis for the emergence of the stock market Banking system in the development of the economy was more understandable, including for the population, and taking into account highly skilled
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