State and Trends in the Banking System Development in the Context of Structural Reform of the National Economy of Ukraine

The relevance of the study was conditioned by the fact that the fulfillment of the banking system potential can ensure positive structural changes in the Ukrainian economy. The purpose of the study was to analyse the state and trends in the development of the banking system of Ukraine in terms of its impact on the structural reform of the national economy. In the course of this study, statistical analysis methods were used (to analyse the state and dynamics of the country's banking system development) and an analogue method (to identify the degree of influence of the banking system development on structural changes in the economy). It was proved that the effective functioning of the banking system is the key to successful economic development of the national economy, namely its reform. It was demonstrated that a mechanism for redistributing financial resources and funds operates through the banking system, so they are mobilised and attracted to economic circulation in those sectors of the economy that need it most. The study summarised the state and trends in the banking system development as prerequisites for fulfilling its potential in the structural reform of the national economy. As a result of analysing the state and trends in the banking system development, both positive and negative features were identified. It was proved that in Ukraine, at the current stage of the national economy development, the banking system has been cleared of low-liquid and conditionally fictitious banking structures, the volume of assets, namely highly liquid ones, is growing, as well as the loan portfolio of banks is improving along with their financial results, liquidity, and solvency, resistance to currency shocks are increasing, and bank lending to the economy is reviving. It was demonstrated that the Ukrainian banking system is described by certain systemic shortcomings, primarily a high level of concentration of bank capital and deposits in the largest banks, as well as state-owned banks in a number of segments of the banking sector in terms of the number of structural divisions, ATMs, terminals, active payment cards. There is a tendency to weaken the penetration of the banking sector into the economy, especially in terms of affordable lending to individuals and strategic sectors of the economy. The practical value of the study lies in the fact that the identified shortcomings in the development of the banking system and its impact on structural reforms allowed determining the strategic areas for improving state regulation in this area