Improving Approach to Conditions’ Statistical Assessment for Ukraine Banking Sector Competitive Development Under the Foreign Banks Presence in the Financial Market

Yuliia Diatlova,Maryna Dielini,Yulia Onyshchenko,Ludmila Kuznetsova,Natalya Nyanchuk,Olena Tkachenko

doi:10.1088/1742-6596/1804/1/012142

Abstract

It is substantiated that most of the existing methods and models for assessing the development of the banking sector of the economy do not take into account the competitive conditions for banks of different groups – with national capital and foreign banking groups. This determines the relevance of the study to improve the methodical approach to statistical assessment of competitive conditions in the development of the banking sector in the presence of foreign banks in the financial market.The scientific work proposes to assess the competitive conditions in the banking sector, in particular those created for domestic banks under the influence of foreign presence, by the level of the coefficient of competitive internalization. Eight gradations of the coefficient level were established by the expert method.Due to the use of mathematical calculation method and official statistics, it was found that the level of competitive internalization in the banking sector of Ukraine over the past decade is mostly dangerous, with a tendency to deteriorate. The coefficients of competitive internalization for the banking sectors of the Commonwealth of Independent States and the European Union have been calculated. It is determined that the level of influence of foreign banks in the banking sector of Ukraine can be compared with the conditions of competitive development of national banks of Moldova and Slovenia. The use of competitive internalization coefficient in practice as a statistical data will create a basis for determining the direction of integration processes. We are convinced that the integration of Ukrainian banks into the banking sector of Moldova or Slovenia is possible.

Highlights

Processes of globalization and integration that increase competition characterize the modern development of the global financial market
The scientific work proposes to assess the competitive conditions in the banking sector, in particular those created for domestic banks under the influence of foreign presence, by the level of the coefficient of competitive internalization
Eight gradations of the coefficient level were established by the expert method

Summary

Introduction

Processes of globalization and integration that increase competition characterize the modern development of the global financial market. That characterize the operating conditions of banks with domestic capital under the influence of the presence of foreign banking groups, which actively use the tools of internalization as an advantage in competition in the market of a particular country. The relative number of foreign banks is much larger than their share in assets, and the values of indicators show the competitive advantages of the banks with national capital. The tendency to deterioration of competitive conditions (increase in the coefficient of competitive internalization) is confirmed by statistical data on maintaining the high value of the index of presence of foreign banks by their number in the 2019 – 0.47. Calculations of the coefficient of competitive internalization allow to make comparisons between countries on the conditions of competitive development of their banking sectors (Table 1)

The world

Findings

Conclusions