Banks with foreign capital in Ukraine: controversies and prospects of development

Abstract

Introduction. Existence in the national economies of banks of foreign banking groups is today a form of financial globalization. The Ukrainian banking system is not an exception. Banks with foreign capital have a considerable influence on the domestic banking system and cause a complex of qualitative changes in it. The consequences of the presence of a significant proportion of foreign-owned banks in the domestic market are quite ambiguous: on the one hand, they contribute to the financial development of the country, and on the other – to conceal certain threats. Under these conditions, the issue of researching the activity of foreign banks in the banking system of Ukraine and identifying prospects for its development becomes highly relevant.

Subject. Identification of peculiarities of functioning of banks with foreign capital in Ukraine, as well as influence on the development of the domestic banking system.

Goal. Assessment of actual indicators of the presence of foreign capital, analysis of its impact on the formation and development of the domestic banking system, as well as identifying directions for improving the efficiency of banks in Ukraine.

Method. The basis of the work was systematic and comparative approaches, which allowed to comprehensively consider the problem in the unity of all components of significant characteristics. The study used the following methods: comparative and statistical analyzes, the method of generalization, the relationship of quantitative and qualitative changes – to analyze the state of the banking system; induction and deduction, analysis and synthesis – in the study of practical results of foreign banks; historical method and method of generalization – in the study of key trends in the development of the banks with foreign capital.

Scope. The practical value of the obtained results is determined by well-grounded conclusions about the impact of foreign-owned banks on the formation and development of the banking system of Ukraine and methodological recommendations for improving the efficiency of the banking system by implementing innovative solutions in its activities.

Results. The actual indicators of the presence of foreign capital during the crisis and after the crisis are analyzed. The peculiarities of the development of foreign banks in Ukraine are revealed. The effects of the presence of foreign capital in the banking system have been determined. The directions of increasing the efficiency of the banking system in the conditions of uncertainty and rapid changes are suggested.