FORMATION OF DEPOSIT RESOURCES IN THE CONTEXT OF ENSURING THE SUSTAINABILITY OF THE BANKING SYSTEM

Abstract

The article is devoted to the analysis of peculiarities of formation of deposit resources in the conditions of the wartime economy in the context of ensuring internal financial stability of the banking system and the economy of Ukraine. The article considers different approaches to allocation of criteria for achieving financial stability of banking institutions. It is determined that the sustainability of the banking system cannot be considered in isolation from the sustainability of the national economy, which implies the effective performance by banks of the functions of financial intermediation in the use of the available resource potential of economic entities to intensify investment activity in the real sector. Based on a statistical analysis of the banking system indicators, the article reveals negative trends that pose risks not only to the banking system but also to the overall economic sustainability due to inefficient use of financial resources. In particular, the tendency to increase the share of short-term resources limits the credit potential of the economy and at the same time increases liquidity risks in the banking system under conditions of uncertainty. It is found that the negative trend towards a decrease in the share of long-term deposits is observed regardless of the currency of placement and the sector of the economy. A statistical assessment of the level of dollarisation of household deposits, which for a long period of time have accounted for more than a third of the total household deposits, is carried out. At the same time, the analysis of foreign currency deposits by term structure revealed a tendency to increase the share of foreign currency demand deposits. It is concluded that maintaining access to one's own savings in the face of uncertainty prevails over the desire to receive higher interest income when placing funds on time deposits. Structural shifts in deposit resources attracted by banks from different sectors of the economy are analysed. It is noted that structural changes in the funding of the banking system in favour of the corporate sector were not formed mainly due to the gradual decline in real household incomes over the past decade. It is concluded that an increase in the share of the corporate sector in the banking system's funding creates additional threats to its sustainability, as they are more concentrated and contain higher risks of liquidity loss in the event of external shocks compared to less consolidated funds of individual depositors. The author emphasises the need to eliminate the existing imbalances in the formation of deposit resources as an important prerequisite for the resumption of lending and economic sustainability in the post-war recovery period.