OPERATION OF THE BANKING SYSTEM AND FOREIGN EXCHANGE MARKET IN THE CONDITIONS OF WAR
Abstract
The article defines the shocks to which the domestic banking system has been exposed in recent years. It was established that after the partial recovery after quarantine restrictions, the established order of operation of the banking sector changed due to the introduction of martial law by the President of Ukraine. The essence of the regulatory documents adopted in the first days of the war was analyzed, the key provisions that guided the banks during the organization of their activities were highlighted. The mechanisms of the National Bank of Ukraine's support of the domestic banking system have been studied. The order of operation of the foreign exchange market in February 2022 has been determined. The principles that governed all decisions made by the Central Bank were structured. The essence and conditions of blank refinancing are detailed. The essence and mechanisms of peer-to-peer and quasi-cash operations were studied, and their influence on the currency market of Ukraine was established. The structure of the banking sector over the past three years has been analyzed through the prism of determining the influence of the martial law on its change. The trends of changes in the network of bank branches in recent years have been studied. The dynamics of changes in net banking assets for the years 2019-2022 are graphically displayed in terms of state, private, foreign banks and Privatbank. The dynamics of changes in the volume of lending to economic entities separately by bank group (state, private, foreign, Privatbank) and all in general were analyzed. The change in the amount of funds kept by the population in bank accounts was considered. The key trends that the foreign exchange market has been exposed to over the past year have been identified, and the measures implemented by the National Bank to stabilize it are given. The profitability of the banking system was studied and the nearest prospects for its change were determined. Further steps that the National Bank of Ukraine aims to take in 2023 are given and further trends that will occur in the domestic banking system in the near future are determined.
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