MANAGEMENT OF BANKING RISKS UNDER MARTIAL LAW CONDITIONS IN UKRAINE

Abstract

With the introduction of martial law, which no European and many other countries have experienced over the past decade, our state has faced a large number of problems that have not bypassed the financial sector of the economy. As a result, there was a decrease in economic activity the enterprise, the level of employment, the standard of living of the population, and as a result reduced the incomes of economic entities, the population and the state. Domestic business has already suffered some financial losses due to the COVID-19 pandemic, but the above losses are not comparable to the huge losses from a full-scale war. At the same time, thanks to the accumulated practical experience of functioning in a crisis, the systemic work of the regulator (National Bank of Ukraine (NBU)) and the solvency of financial market participants, the financial sector was the most prepared for such a development in 2022. Enough scientific papers have already been devoted to the peculiarities of risk management, but now we need to focus on studies of the functioning of the banking sector of Ukraine in conditions of uncertainty and martial law. The article is devoted to consider a set of instruments of anti-crisis monetary management, prerequisites, factors and features of their application in the conditions of a full-scale military invasion. Anti-crisis measures aimed at maintaining the liquidity of the banking system, including operations with certificates of deposit and government bonds, which under martial law do not always achieve the goals of ensuring financial stability, have been analyzed. With the beginning of a full-scale invasion, the main task of regulators and banks was to maintain customer confidence and stability of the banking sector. The difficult conditions of bank management and the high level of uncertainty about the future require the adoption of effective decisions both at the NBU level and at the level of individual banks. Therefore, improving the risk management system under martial law is an important task to ensure the stability of the banking sector, which is a key priority for the economy of any country.