Abstract
The article explores the structure of corporate ownership in banking sector in Ukraine during an after-privatization period of time from 1998 to 2003. It was concluded that the share of insiders1 in the structure of corporate ownership in banking sector in Ukraine remarkably increased. The share of outsiders almost did not change. Thus, privatization has led to transferring the corporate ownership from the State to insiders. Development of the process of concentration of corporate ownership structure in banks in Ukraine is controlled by two groups of investors. These are management (executives) of the banks and institutional investors. Major objective of purchasing shares by management is obtaining a total control over the compensation policy. Role of minority shareholders is very weak and there rights are not protected enough to let them participate actively in corporate governance.
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