Post-crisis resumption of efficiency of the banking system in Ukraine

Abstract

Introduction. Being influenced by deindustrialization of the national economy, the growth of its openness and dependence on development of the global commodity markets, as well the absence of relevant legislation and fair judiciary, the banking system of Ukraine is usually affected by negative external and internal shocks. Such situation leads to the emergence of protracted crises.     

The article analyses theoretical aspects of efficiency of a banking system, substantiates the main reasons of a decrease of efficiency of the banking system in Ukraine under conditions of the economic crisis, and considers prospective directions for solving problems concerned with the post-crisis resumption of efficiency of the domestic banking system. 

Purpose. The article’s purpose is to examine theoretical peculiarities of efficiency of a banking system, reasons of deterioration of efficiency of the banking system in Ukraine, and to form practical recommendations regarding post-crisis resumption of this system.

Method (methodology). The author applies the following methods: methods of retrospective analysis in researching the main reasons, which have led to a decrease of efficiency of the banking system of Ukraine; methods of analogy and comparison for substantiating tendencies of changes in indicators of the banking system and macroeconomics; methods of statistical analysis for analysing number series of indicators of an exchange rate, the balance of payments, operative efficiency of the banking system; methods of synthesis and systematization in forming recommendations regarding enhancing efficiency of the domestic banking system.     

Results. The author substantiates the theoretical essence of a notion of banking system efficiency; indicates and substantiates pivotal reasons for a decrease of efficiency of the banking system of Ukraine during the crisis. The author has developed a set of recommendations regarding post-crisis resumption of efficiency of the domestic banking system through the foundation of a hospital bank, as well as optimization of the interest rate policy and mechanism for refinancing the National Bank of Ukraine.