CURRENT ACTIVITIES OF TRANSNATIONAL BANKS IN THE GLOBAL ECONOMY

Abstract

The article defines modern trends of transnationalization in the international banking sphere. The prerequisites for the formation and development of globalization processes in the financial and banking sphere are considered: economic factors, technological and international legal factors. The general definition of a transnational bank is substantiated, the essence of which can be considered in the context of quantitative and qualitative aspects of its definition. A general definition of a transnational bank is provided as a bank that carries out operations in more than one country. The most characteristic trends in the development of transnationalization of the international banking business are outlined, which include the universalization of bank activity, the growth of competition in the banking sector, the liberalization of banking operations, and the growth of innovative activity of banks. The negative consequences of the development of international banking operations are also determined. The characteristic trends of transnationalization in the banking sphere were studied and the leading transnational banks were selected by the level of market capitalization. The peculiarities of the development of the domestic banking system, which is considered as an attractive host area for transnationalization processes, are evaluated. The influence of transnational banks on the economy of the host country and its banking system is considered from the point of view of the consequences of financial liberalization of the world economy as a whole and the development of the domestic financial sector. Identified obstacles on the way to the formation of Ukrainian transnational structures: the instability of the economic and political situation in the state; underdevelopment of the legislative framework in matters of the status and activities of transnational corporations; strong competition from existing global multinational corporations; lack of an appropriate innovation base that could compete with the technologies of foreign multinational corporations; relatively low level of management; high «tinization» of the economy; high level of inflation, etc. The main reasons that caused the changes in the banking sector in modern globalization conditions are proven: the unification of the activities of the real sector of the economy and the financial system of the countries of the world, convergence of the rules for regulating internal and external operations; formation of a network of branches of transnational companies; transformation of the international capital market into an independent factor in the development of the world economy; increase in the share of international operations of banks in the total volume of operations. On the basis of the conducted analysis, suggestions are provided regarding the further development of the activities of transnational banks in the world economy.