Ukrainian Banks Research Articles

House price bubble detection in Ukraine

PurposeThe purpose of this paper is to present a framework for the assessment of the fundamental value of house prices in the largest Ukrainian cities, as well as to identify the thresholds, the breach of which would signal a bubble.Design/methodology/approachHouse price bubbles are detected using two approaches: ratios and regression analysis. Two variants of each method are considered. The authors calculate the price-to-rent and price-to-income ratios that can identify a possible overvaluation or undervaluation of house prices. Then, the authors perform regression analyses by considering individual multi-factor models for each city and by using a within regression model with one-way (individual) effects on panel data.FindingsThe only pronounced and prolonged period of a house price bubble is the one that coincides with the Global Financial Crisis. The bubble signals produced by these methods are, on average, simultaneous and in accordance with economic sense.Research limitations/implicationsThe framework described in this paper can serve as a model for the implementation of a tool for detecting house price bubbles in other countries with emerging, small and open economies, due to adjustments for high inflation and significant dependence on reserve currencies that it incorporates.Practical implicationsA tool for measuring fundamental house prices and a bubble indicator for housing markets will be used to monitor the systemic risks stemming from the real estate market. Thus, it will help the National Bank of Ukraine maintain financial stability.Social implicationsThe framework presented in this research will contribute to the enhancement of the systemic risk analysis toolkit of the National Bank of Ukraine. Therefore, it will help to prevent or mitigate risks that might originate in the real estate market.Originality/valueThe authors show how to implement an instrument for detecting house price bubbles in Ukraine. This will become important in the context of the after-war reconstruction of Ukraine, with mortgages potentially becoming the main tool for the financing of the rebuilding/renovation of the residential real estate stock.

Cyber Security of the System of Electronic Payment of the National Bank of Ukraine

"In the world of today, cases of cyber attacks on banking systems have become more frequent. The aim of this research is to develop methodical and practical recommendations how to eliminate threats of oversight of payment systems, stabilize the protection of participants and users of the payment portfolio of banking institutions against misinformation and fraud. The research proposes a synergistic cyber security model of the SEP of NBU, taking into account the securitization of the payment portfolio of banking institutions in the financial market to prevent threats and meet the needs of participants and users in banking services. The article analyzes the chronology of attacks on the information resources of the NBU and the banking system during the period of martial law in Ukraine, and presents fraudulent targeted attacks “using eidetic of banking institutions of Ukraine. The criteria for the level of cyber security of the SEP of NBU are recommended. The research concludes with a determination of the reference state bank of Ukraine, which has the best combination of the level of securitization of the payment portfolio of banking institutions and the protection of active information resources. The practical significance of this research lies in providing recommendations aimed at improving the stability of cyber security in the SEP of NBU, thereby ensuring the safety of cash transactions in the digital economy."

ASSESSMENT OF TRENDS IN THE DEVELOPMENT OF BUSINESS ENVIRONMENT OF UKRAINE IN UNSTABLE CONDITIONS

In the article, the authors analyzed the dynamics of the main macroeconomic indicators, such as: indexes of the gross domestic product and industrial production; volumes of exports, imports and foreign trade balance of Ukraine to assess general trends in the development of Ukraine’s business environment. The authors considered the results of the survey of company managers conducted by the National Bank of Ukraine in 2023 and the dynamics of the Index of Business Expectations of Enterprises; the results of a joint study conducted by the Innovation Development Center, the Office for Entrepreneurship and Export Development, the Diya.Business national project, the strategic agency Advanter Group, and the dynamics of the Ukrainian Business Index. The causes and consequences of the decline in the economic activity of Ukrainian enterprises in the main sectors of the economy were identified. Rational solutions aimed at supporting and restoring business in conditions of instability were determined. The results of the international assessment based on the ranking of economic freedoms from the American Heritage Foundation (Economic Freedom Index), the Corruption Perceptions Index from Transparency International (Corruption Perceptions Index), and the international study of the perception of national brands from Brand Finance (Global Soft Power Index) were considered. The role of Ukraine in the world economy was defined. It was concluded that the recovery of the Ukrainian economy remains restrained due to significant losses, destruction, and ongoing hostilities. Positive expectations in terms of economic recovery are associated with the further adoption and implementation of EU decisions on: using the advantages of the unification of the energy systems of continental Europe ENTSO-E and Ukraine (the so-called “energy visa-free”); exemption of Ukrainian business products from tariffs and quotas (“economic visa exemption”); liberalization of road transportation (“transport visa-free”); integration of Ukrainian customs authorities with European ones (“customs visa-free”). Such decisions will significantly contribute to the expansion of international trade, further integration of Ukraine into European production, as well as transport and logistics networks.

RIGHT BANK UKRAINE IN THE IMPERIAL EXPANSIONIST POLICY OF RUSSIA BEFORE THE SECOND DIVISION OF THE COMMONWEALTH IN 1793

The article reveals the influence and foreign policy role of Russia before the second partition of the Polish-Lithuanian Commonwealth, shows the expansionist plans to reject Right-Bank Ukraine. Some aspects of state ideology as a fundamental theoretical basis and political strategy of modern Russia are analyzed. The development of Ukrainian territories in the conditions of prevailing Russian factors and their absorption by the empire is studied Keywords: Russian state ideology, section Polish-Lithuanian Commonwealth, geopolitics, Russian-Polish relations, annexation of Right Bank Ukraine, expansion.

STATE REGULATOR’S ROLE IN THE COUNTRY’S BANKING SYSTEM DURING WARTIME

Armed aggression and its negative impact on the exogenous and endogenous environment of economic agents aggravate the problems of the sectors of the national economy, in particular, the banking sector. In this context, the state acquires a key role in managing the processes of the banking sector at both the micro and macro levels. The aim of the article is to determine the key characteristics of the state’s influence on the banking sector in Ukraine during the active phase of the war. The method of synthesis, the method of economic and statistical analysis, and the case method were applied for the analysis. The methodological framework of the research is the method of strategic analysis. The key task of balancing the operational work of the banking sector, maintaining a stable macroeconomic condition and state security is emphasized. As a result, emphasis is placed on the need to define a system of key indicators for management by the regulator and central authorities during the war. Accordingly, the analysis of these indicators showed that the banking sector of Ukraine did not experience catastrophic losses in 2022, which indicates the success of the state in this area. In particular, the number of operating banks in Ukraine slightly decreased by -5.7% in 2022 to 67 banks. Moreover, it was recorded that the banking sector of Ukraine maintained a positive financial result at the level of UAH 12 billion net profit in Q3 2022. Prospects for future research consist of an in-depth study of factors influencing the complex of state actions at the micro- and macro-levels in terms of meeting the needs of the main groups of stakeholders.

Theoretical foundations and practice of the actions of governments and central banks in the conditions of war: historical excursion and Ukrainian experience

The object of research is the current global experience of regulating the financial sector and financing the costs of military actions of countries that were at war. This experience is compared in the work with those measures that were used by the government of Ukraine during the russian-Ukrainian war. In the conditions of war, the problem of financing war expenditures and balancing the budget for uninterrupted implementation of social payments is particularly acute. A sharp imbalance of the country's budget in the direction of financing military expenses and a drop in GDP, as a result of military operations on the territory of the country where military aggression is taking place, requires adequate actions of both regulatory and investment nature from the government and regulators. The timeliness and adequacy of such actions is a practical and scientific dilemma, the solution of which lies partly in the world's historical experience. The work proves that the actions of the Ukrainian government and the National Bank of Ukraine during the active phase of military aggression on the part of russia fully correspond to modern theoretical and methodological achievements in the organization of financing the defense expenditures of belligerent countries. Ukraine is using almost the entire arsenal of possible financing options: reducing non-military spending, increasing government borrowing, and issuing money. The study of the role of expenditures to fill the budget demonstrated the reduction of the role of taxes as a lever for financing the growing expenditures of states on defense. Coordinated actions of the Government of Ukraine and the National Bank of Ukraine prevented a sharp outflow of foreign capital from the country and preserved the purchasing power of the national currency. This is explained by the timely application of historical experience, tools of the classic Lucas-Stokey model with skillful manipulation of government debt rates in order to interest investors in long-term investment in government debt securities, and unprecedented financial assistance from foreign partners.

Шляхи підвищення конкурентоспроможності банківських установ

Banking is one of the most competitive industries, which is crucial for the financial stability of the economy. The ability of financial institutions to compete depends on a variety of elements, including management efficiency, resourcefulness and market adaptability. Unlike other countries of the world, the competitiveness of banking institutions on the Ukrainian market is still quite low. This is caused by many factors, first of all, the invasion of Ukraine by an aggressor country, which led to an increase in the level of risks, a slowdown in the development of financial culture, and a lack of high-tech banking solutions. Despite these challenges, the banking system of Ukraine has the potential to become more competitive and reach the international level. The use of the latest standards and technologies, active participation in integration procedures, increasing public trust in the financial system and attracting investments – all this can contribute to the competitiveness of Ukrainian banks. This article discusses the ways of increasing the competitiveness of banking institutions.

Analysis of Trends in Mortgage Lending in the Agricultural Sector of Ukraine

This study has the following objectives: to analyze the state of agrarian business lending and the market of banking services, establish the reasons for the insufficient level of mortgage lending implementation, and develop ways and tools to improve lending to the agrarian sector. The research methodology considers a systematic approach to the statistical analysis of bank lending in the agricultural sector of Ukraine, the development of criteria, and the implementation of the hierarchy analysis method for the reasonable selection of a loan product and banking institution. We conducted an analysis of the current state of lending to agricultural enterprises. We also analyzed lending trends, loan products, and basic lending terms by banks of Ukraine to agricultural enterprises. The share of bank lending of the working capital of the agricultural industry was estimated. The dynamics of preferential lending to the agricultural sector were determined. Its essence is that banks with partial repayment of loan rates are given loans at the expense of the state budget. The directions and volumes of borrowed loan resources usage by agricultural enterprises were considered. It is recommended to use the hierarchy analysis method by T. Saaty for choosing an effective loan product. We developed the criteria that could be applied when selecting a loan product. We also determined potential directions for the development of mortgage lending for the agricultural sector.

Methodological research of financial sector digital transformation trends in banking

The article analyzes the current problems of the financial sector within the framework digital transformation and the gradual transition to digital service financial transactions. The object of research is the Ukrainian financial banking sector, the peculiarities of which functioning at this stage crisis economy Ukraine require finding adaptation ways for the introduction digital transformation procedures. The subject is financial relations in the digital adaptation sphere and innovative development banking through the prism involvement of tools and information technologies in financial system, in general, and financial operations and procedures, in particular. The problems domestic financial sector transformation became more acute in connection with the mass transition to remote channels interaction with clients, first due to the restrictions that were applied as a result the COVID-19 pandemic, and then due to the armed aggression of russia to Ukraine. The research methodology is based on a comprehensive assessment dynamic changes in the financial environment and the creation a basis for modeling predictive scenarios and strategies based on the study existing situation, theoretical basis development and financial and banking sector development directions for effective interaction in Ukrainian economy conditions. The Ukrainian banking system trends changes are outlined. The peculiarities of the international development financial and banking sphere are defined, a comparison with the world experience is outlined, analytical studies best global cases are carried out for the possibility introducing the results to the Ukrainian financial space. The research results about digital capabilities banking sphere in Ukraine are presented, the essential content banking, the properties system, the peculiarities building a banking digital architecture and architectonics through the prism of components and tools for a banking strategy model are presented. Attention is paid to the innovative development of the banking sector and directions for attracting investment resources. Procedures for creating digital opportunities transition financial sector and reengineering business processes for companies when transitioning to a digital format commercial activity have been worked out, that will be of theoretical and applied importance for further research by scientists from different countries. The authors offer recommendations to solving the digitization problems of the Ukrainian financial sector. The research results of the digital transformation direction in banking sector are presented for further use in modeling Ukrainian`s business post-war recovery scenarios.

ECONOMIC CHALLENGES OF SUSTAINABLE DEVELOPMENT GOALS IN UKRAINE

The United Nations 2030 Agenda and its Sustainable Development Goals pose new challenges for Ukrainian businesses, which need to adapt their operations and strategies to the requirements of the SDGs. The purpose of this paper is to highlight the role of economic challenges and business opportunities of the SDGs for the Ukrainian economy. In particular, it assesses whether the SDGs can realistically be achieved after the COVID-19 pandemic and the war with the Russian Federation. Methodology. More generally, the framework allows to assess the macroeconomic coherence with the development strategies of Ukraine. The basic trends of the SDGs for Ukraine are summarized, and the estimation model of the progress in achieving the SDGs is carried out. The impact of the COVID-19 pandemic on the economy of Ukraine is studied. Results. The results show that the economic challenges after the COVID-19 pandemic and the war include ethical, social, financial, and legal aspects that meet the requirements of sustainable development, which is a very high priority for the community in Ukraine. Practical implications. A comparative analysis of the activity of Ukrainian enterprises during quarantine is made on the basis of research data and those for official statistics. Value/originality. According to this study, Ukraine will need 5-7 years to regain the potential lost during the COVID-19 pandemic and the war. The actions of the government and the National Bank of Ukraine continue to support the economic mitigation of the negative effects of the war. The research is based on the economic issues that show how the SDGs can be achieved in the country under different policy scenarios, including modernization of production, development of innovation, increasing export potential, and support from the international community, especially the EU and the US. The assessment of the progress in the implementation of the SDGs in Ukraine showed their significant indicators, such as: The share of exports of goods whose production uses technologies of high and medium-high level in the total exports of goods; Ukraine's position as assessed by the Global Innovation Index; the increase in employment; the creation of institutional and financial capacities for self-realization of the potential of the economically active population and the development of the creative economy; Development of high-quality, reliable, sustainable and accessible infrastructure based on the use of innovative technologies, including environmentally friendly means of transport; ensuring the development of sustainable food production systems that contribute to the preservation of ecosystems and the gradual improvement of the quality of land and soil, primarily through innovative technologies; doubling agricultural productivity, primarily through innovative technologies; mobilization of additional financial resources through the promotion of foreign and domestic investment. Other SDGs showed low improvement and likelihood.

Powstanie i działalność struktur wojskowych Rzeczypospolitej Polskiej w zakresie zaopatrzenia materiałowo-technicznego oddziałów Ukraińskiej Republiki Ludowej (kwiecień–październik 1920 r.)

The article is devoted to the little-known aspect of cooperation of the Polish and Ukrainian People Republics. In particular, it addresses the supplies to combat divisions of UPR Army in accordance with the military convention of April 24, 1920. The provision was enabled by the formation and activity of the special military Polish institutions in the Right Bank Ukraine. It deals with the command of the stages of the Polish Troops in Ukraine, Polish military representatives in the UPR government, section “U”, Ukrainian representatives of the 6th Army of the Polish Troops. Their task was to deliver the necessary supplies to the military divisions of the UPR. Special attention was paid to their work performance, which had a general positive effect on the military activity of the Ukrainian divisions in their counteracting the Red Army till the autumn 1920.

РОЗВИТОК ФІНТЕХ-ЕКОСИСТЕМИ В УКРАЇНІ: СПІВПРАЦЯ МІЖ СТЕЙКХОЛДЕРАМИ В УМОВАХ ЦИФРОВОГО СУСПІЛЬСТВА

The FinTech ecosystem in Ukraine is actively developing and directly influencing economic growth. The article provides the author's interpretation of the definition of the FinTech ecosystem as a system that is a synergy of various companies and organizations that collaborate to provide high-quality, fast, and secure financial services to ensure optimal financial decision-making and improve quality of life. The key segments comprising the FinTech ecosystem are examined, and the basic components of the modern FinTech ecosystem, including regulation and procedures, demand, talent, and capital, are analyzed. The article analyzes trends in the global FinTech market in 2022 based on these basic segments. Factors that have a significant impact on the development of the FinTech ecosystem in Ukraine are systematized. A periodization of the development of the FinTech ecosystem in Ukraine since 2008 is proposed, and the specific characteristics of these periods and the FinTech startups that were formed during this period are identified. The activity of the National Bank of Ukraine as a financial regulator stimulating the development of the FinTech ecosystem and the results following the publication of the FinTech Development Strategy until 2025 are analyzed. The regulatory environment for the functioning of the FinTech ecosystem in Ukraine is examined in detail. The impact of the talent development factor on the development of the FinTech ecosystem is identified as a key factor in ensuring cooperation between educational, scientific, and business institutions, considering global trends of globalization and digitalization. The purpose, tasks, and features of the activity of the Scientific Park of Ivan Franko National University in Lviv are examined. Recommendations are provided, the practical implementation of which will contribute to improving the effectiveness of the FinTech ecosystem in Ukraine in the conditions of a digital society.

CREDIT OPERATIONS OF BANKS AND CREDIT LINE

The article reveals the essence of the concept of credit as an economic category, its forms, types and principles. The essence of the credit policy of banking institutions is defined, the credit operations of banks at the current stage of the economy are characterized, and the current state of the credit activity of Ukrainian banks is analyzed. The development of the financial services market in the conditions of the global financial crisis is analyzed. The problems and prospects of the development of the credit services market in Ukraine have been identified. The choice of credit strategy by banks of Ukraine was studied. The main problems of banks' lending activities are summarized and practical recommendations for overcoming them are provided. Ways to improve the credit process of commercial banks are predicted. Global practice proves that credit and credit operations permeate all spheres of society and contribute to the development of the country.

Digital Banking Transformation Through Cooperation with Fintech Startups in Ukraine

The purpose of the article/hypothesis: Is to identify the peculiarities of Fintech startups activities, to track trends and perspectives of interaction between classic banks and Fintech companies, as well as to research the activities of neobanks and formulate proposals for improving the Fintech ecosystem in Ukraine with the aim of providing quality digital financial services to various categories of consumers.
 Methodology: Methods of statistical analysis, analogy, synthesis and theoretical generalization were used when researching the materials of specialized analytical agencies, official websites of foreign and domestic banks, state financial strategies and scientific literature.
 Results of the research: The active growth of a number of Fintech startups in the world and in Ukraine forms a positive dynamic of the digital transformation of the banking sector. The cooperation between banks and Fintechs allows the use new innovative products in banking, such as artificial intelligence, robo-consultation, blockchain, cryptocurrencies, the Internet of Things, virtual and augmented reality. For the further digital transformation of banking in Ukraine the financial market participants must implement international open banking standards and tools for remote identification and verification of clients, actively introduce artificial intelligence and machine learning tools into finance, and develop a Fintech ecosystem.

GREEN TREND IN INTERNATIONAL BANKING BUSINESS: OPPORTUNITIES FOR UKRAINE

The main forces influencing the bank's decision to switch to green banking are systematized, the potential for its growth in Ukraine is identified. Green banking in developing countries is explored, taking into account the growing need for finance to combat climate change in this group of countries. The conceptual and categorical apparatus of green finance research is improved due to the presentation of the author's approach to the interpretation of the "green bank" category, which is understood as a bank that, in both its credit and investment activities, gives priority to environmental protection over profit maximization. Based on the analysis of the latest scientific research, the systematic identification and classification of factors influencing the bank's decision to switch to green banking, which include economic (bank competition) and non-economic (ecological, cultural, moral, political) factors, are improved. It is concluded that the motives and pressure on banks for their switch to green banking have, unlike the factors, more subjective nature and are closely related to the future benefits or losses that each specific bank plans to receive or incur as a result of such switch. The ultimate goal of most motives is to increase the value of the bank, but political and economic motives for expansion and various non-economic goals of some international banks should be factored in, since they can significantly limit the effect of the market mechanism in the banking systems of recipient countries and lead to increased instability. Motives (risk avoidance, cost reduction, reputation improvement, profit maximization) are proposed to be identified as positive incentives for banks to switch to green banking, and pressure (regulatory or governmental; from stakeholders, customers and employees) as negative ones. Opportunities and challenges for international banking business in the process of the switch to green banking are considered. In the context of global trends in the development of international banking business, the development potential of green banking in Ukraine is analyzed.

Особливості укладання банківських договорів у мережі інтернет

In the context of current national legislation and regulations of the European Union, the article examines the theoretical and practical principles that determine the peculiarities of concluding banking contracts on the Internet using modern web interfaces and similar mechanisms (primarily, click-wrap and browse-wrap contracts) in the light recognition of reality. The methodological basis made up of general and private methods of scientific knowledge. The general scientific method of dialectical cognition, formal-dogmatic, comparative-legal method, linguistic methods, methods of deduction, induction, analysis and synthesis were used in the research process. The subject of the study is the norms of civil law on the contract, the norms of banking law on the conditions of certain types of banking contracts, the procedure for their conclusion and execution. It noted that the actions of the right holder of the program, including the bank, with the aim of further concluding an electronic contract on certain terms with unspecified counterparties, should be qualified as a public offer. Acceptance of this offer must create rights and obligations for the person who is the right holder of this program, regardless of his awareness of the fact of concluding such an agreement. The need for special legal regulation of the procedure for concluding banking contracts on the Internet substantiated. The procedure for concluding these contracts can found in the instructions of the National Bank of Ukraine, which defines the requirements for the banking institution regarding the additional identification of clients in the procedure for concluding banking contracts in the form of an Internet bank. The use of a smart contract requires a legal framework that would define the legal nature, concept and legal mechanism of a smart contract. An offer for the conclusion of a contract received in the personal account; the client accepts it using the actions provided in the software, which can be equated to a qualified electronic signature.

Актуальні питання правового регулювання фінансових відносин в умовах воєнного стану в Україні

The article clarifies the issue of legal regulation of financial relations during martial law in Ukraine. Changes in the powers of the Cabinet of Ministers of Ukraine, the Minister of Finance of Ukraine, the State Treasury Service of Ukraine, the National Bank of Ukraine, the Supreme Commander-in-Chief of the Armed Forces of Ukraine, military administrations, and local bodies during this period were considered. It is justified that the purpose of making changes to the budget legislation is primarily to ensure: priority financing of security and defense expenditures, their increase and redistribution between budgets; formation of the reserve fund of the State Budget of Ukraine; treasury service of funds of local budgets of settlements located in territories where martial law has been imposed, and managers (recipients) of budget funds who may be in settlements in temporarily uncontrolled territory. It is concluded that changes in the legal regulation of banking and currency relations contributed to: ensuring the convenience, speed and availability of financial services; the creation of the Power Banking network and the introduction of ATM national roaming for uninterrupted operation of the banking system, including in blackout conditions; weakening of the negative impact of uncontrolled devaluation, deficit of foreign exchange receipts on the foreign exchange market; ensuring exchange rate stability of the hryvnia; maintaining the stability of the banking system of Ukraine during this period.

The budget policy of Ukraine under martial law

Large-scale military actions on Ukraine’s territory have led to extraordinary challenges for budget policy. This study aims to evaluate the budget policy of Ukraine and substantiate its strategic priorities in martial law. The paper used economic and statistical methods to assess the ultimate budget indicators. It was determined that budget revenues decreased due to the economic recession, and expenditures, primarily for defense and security, increased. In 2022, compared to 2021 (the full-scale war against Ukraine began on February 24, 2022), tax revenues decreased by 7.6%. In contrast, the study observed an increase in budget expenditures by 65.0%, in the budget deficit by 4.5 times (financed mainly by external borrowings and military bonds bought by the National Bank of Ukraine), and in state and guaranteed state debt by 52.4%. In the context of military operations, the budget policy aims to ensure a balance between financing the most critical items of the budget and stimulating the economy’s recovery. At the same time, the institutional capacity of state authorities allows controlling how a country survives in this challenging period. In order to restore the economy, the Ukrainian government must implement a prudent budget policy, assess fiscal risks associated with changes in the macroeconomic environment, and increase the efficiency of budget expenditures.

Green bonds as a perspective financial instrument for bank investment in Ukraine

Banks, as the main institutional participants in the securities market, play an important role in ensuring green investment processes, positioning themselves as socially and environmentally responsible financial institutions, which confirms the relevance of the research topic. The purpose of the study is to disclose the essence of green bonds as a new financial instrument on the international and Ukrainian stock market and to determine the prospects for their inclusion in the investment portfolio of the banks of Ukraine. The study uses general scientific and special methods of scientific cognition: analysis and synthesis, induction and deduction, horizontal analysis method, graphical method, comparative legal method, and analytic hierarchy process. The authors clarify the interpretation of the economic essence of the concept of “green bonds”. The peculiarities of the formation of the global market for these financial instruments and trends in its formation in 2007-2022 are investigated. The legislative framework for regulating the national green bond market is elaborated. The advantages and disadvantages of including green bonds in the investment portfolio of Ukrainian banks are determined. The optimal tool for improving the formation of a bank investment portfolio based on such criteria as liquidity, profitability and riskiness, taking into account general banking goals, is determined and the role of green bonds as potential investment instruments for banks is characterised based on the data obtained. Barriers to the formation of green investment policy by banks and ways to overcome them are described. The practical significance of the obtained results lies in the fact that the implementation of the suggested recommendations for removing barriers to environmentally oriented investments by Ukrainian banks will help to revitalise the financing of environmental projects, and the developed proposals for enhancing the formation of investment portfolios by Ukrainian banks can be used by financial institutions to increase their financial stability and minimise the risk of investment transactions

Problems of the development of «green» banking in Ukraine

Methods. General and specific research methods were used during the research. The basis of the study was the theoretical and scientific–methodical provisions of economic sciences, banking theory and the monetary system, as well as modern concepts of economic growth in the country, theoretical achievements of domestic and foreign scientists, dedicated to the problems of the «green» economy and its impact on economic growth. The method of generalization was used in determining the «green» economy and «green» financing, which are the main reasons for the emergence and development of «green» banking in the world and in Ukraine. The method of scientific abstraction, structural decomposition, indication and deduction was used in substantiating the theoretical foundations of «green» financing and «green» banking. The method of grouping and system analysis made it possible to reveal the features of «green» banking in Ukraine, the problems of its development, and the systematization of ways of further implementation in the period of the post– war formation of the economy of Ukraine. Results. The main features and problems of the functioning of the Ukrainian «green» banking system in the modern period have been determined. The special role played by the effective development of «green» financing in the sustainable economic development of the country has been established. The main banking instruments used in the global practice of «green» banking, as well as the experience of using them in the banking system of Ukraine, were studied. An assessment of the obstacles to the application of «green» banking and the use of «green» financial instruments in the context of financing sustainable development projects in Ukraine was carried out. The main ways of overcoming the negative impact of global crises have been determined, taking into account the international experience of banking activity. Novelty. In the study, the experience of the development of «green» banking in Ukraine was studied and possible ways of using «green» financing during the period of building the economy of sustainable development and the post– war recovery of the country were determined. Practical value. Ways of further effective implementation of «green» banking in terms of the program of sustainable development of Ukraine and the construction of sustainable banks are proposed