Banking competition: current state and problems of development in Ukraine

Лілія Олександрівна Ковриженко


Introduction. Structural transformations in Ukraine's banking sector at present changing conditions cause competitive environment and impact on the level of banking competition. Reduction of the number of operating banks, redistribution of market structure between the main participants of competitive relations necessitate analysis of the impact of these processes on the further development of the banking system.

Goal. The article is a study of competition in the banking sector of Ukraine and laws of its development in the modern world.

Results. The model of the financial system, which has been formed in the Ukrainian economy, shows the dominance of the banking sector in its structure. On the basis of a comparison of the levels of development of the banking and non-banking sectors of the financial system it has been revealed that the level of competition from non-bank financial institutions is negligible. The dynamics of the various segments of the banking sector by ownership points to the growing influence of the public sector in the banking system of Ukraine. It is found out that enhance of the overall level of concentration of the structure of the banking system in terms of deposits, revenues, loans and assets in general has occurred in a crisis period. We have identified the trends that indicate a possible threat to the further development of an effective banking competition, so they need a constant monitoring of market concentration level and systemic risks in the banking sector.


banking competition; banks; non-bank financial institutions; concentration; systemic risks

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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