PRINCIPLES OF FUNCTIONING OF THE BANKING SYSTEM OF UKRAINE IN WAR CONDITIONS

Abstract

The article is devoted to determining the basic principles of functioning of the banking system of Ukraine under martial law. The relevance of the study lies in the need to ensure the stable operation of the banking system, strategically important for the state and citizens. The aim of the article is to define the basic principles of functioning of the banking system in wartime conditions as an experience that can be adapted by other countries, which face crisis situations in the economic and political environment. In order to achieve the objectives, the basic principles of the functioning of the banking system in war conditions are defined. Based on the results of the analysis of the current state, the problems faced by the banking industry were identified and ways to solve them were proposed. During the study were used general scientific methods such as analysis, synthesis, comparison, induction and deduction. According to the results of the study it was found that the activities of the banking system in times of war should be carried out on the principles of legality, economic independence, independence, responsibility for its obligations, the legality of banking operations, compliance with the NBU regulations, ensuring the right to choose a banking institution by individuals, ensuring the performance of the undertaken obligations and maintaining the trust of people. During the war, the banking industry faced many problems: lack of human resources, the threat of cyber attacks, exceeding cash balance limits, the seizure of bank accounts, losses on pre-provisioned loans. To solve these problems it is necessary to ensure the stable functioning of the banking system during the war, to develop risk management, to promote digitalization, to popularize non-cash accounts, to strengthen the system of electronic payments, and to enlist international support. The practical significance of the study lies in the possibility of applying the proposed recovery measures by other countries in crisis situations arising in the economic and political environment.