PROVISION OF BANKING SERVICES IN THE CONTEXT OF THE SUSTAINABILITY OF THE BANKING SYSTEM: CURRENT TRENDS AND DEVELOPMENT DIRECTIONS

Abstract

The article examines banking services in the context of the stability of the banking system: current trends and directions of development. The current stage of development of the global banking system operates under conditions of intensified competition and crisis phenomena in financial markets. One of the main factors in the successful development of the domestic banking system is the policy of constant innovations.Currently, innovation is a key factor in the stability, competitiveness and sustainable economic growth of domestic banks. The sustainable development of the national economy is accompanied by an increase in the volume of financial transactions and an increase in the importance of the domestic banking sector. The banking system, being one of the most important links of the market economy, affects the life of society in many ways. It not only provides a mechanism for interregional redistribution of monetary capital, but is also a key element of the settlement and payment mechanisms of the country's economic system. This fact determines the importance of the banking sector in the socio-economic development of the state.The current realities of the banking business contribute to the identification of the main catalysts of domestic banking innovation activity: globalization of world financial markets and markets of banking services; growing competition from the banking and non-banking sectors; the world financial crisis. The above-mentioned factors significantly affect the qualitative and quantitative composition of banking institutions and their services and lead to key changes in consumer behavior, thus leaving banks with the only opportunity to preserve and increase their competitive advantages through the introduction of innovations, the direction of which determines the strategy for the development of the banking sector on medium-term perspective. Based on the results of the research, it was established that the problems accumulated in the national banking system can be solved by applying the experience of Great Britain, and the main postulates should be adapted to the national banking system, which will contribute to the development of the domestic market of banking services and increase the stability of the national banking system.