Ukranian banking system

In these circumstances, in Ukraine very slowly evolving demand for mediation services of banks, and then there was no economic prerequisites for the proper development of the banking system. Therefore, despite the significant growth of key quantitative indicators of its activity, the overall level of development of the Ukrainian banking system, especially given the banking systems in developed countries, there is very low. This is confirmed by the data set forth below, which characterize the qualitative aspects of the banking system of Ukraine.

Is inadequate capitalization of commercial banks. The total amount of equity capital of all commercial banks in Ukraine on January 1, 2000 amounted to 1116.4 million. On average, a single bank account for 6.85 million dollars. Against the background of the leading banks in the world kapitaloobespechennost Ukrainian banks had so that none of the Ukrainian banks are not included in the list of the first thousand banks in the world, published by the British magazine "The Vanker" in 1994 and the situation has not changed at the beginning of 2000 for the largest The indicator Bank of Ukraine - Prominvestbank - had at the beginning of 2000 of U.S. $ 128.4 million of equity capital, while the latter bank thousandth of a list already in 1994 was 125.0 million. Therefore, Ukrainian banks will be hard to compete with foreign, not only in the global market, but also in Ukraine, if the latter decide to seriously foothold in our market. [10]

Solve the problem of administrative pressure on banks (increasing minimum capital fund, increasing the requirements for capitalization of profits, etc.), since the profitability of banks in recent years has steadily decreased, the attractiveness of the banking business for investors diminishes and the necessary internal financial capital remains limited. Solve the problem of banks' capitalization is possible only in accelerating the market transformation of the economy, its efficiency, public finances and improve the profitability of banks.

Poor credit predominant part of the borrowing enterprises, low capitalization, lack of management are the cause of their extremely high risks of banking activity, increased mistrust of banks, particularly from the family sector of the economy makes it difficult to support their liquidity. All this weakens the mediating role and transformative function of banks and the banking system as a whole. Banks are to adequately meet the demand for loan capital, primarily by the subjects of the real sector of the economy that is constantly experiencing a profound shortage of money as a means of payment and as capital. 3 On the other hand, all the economic actors, in which there are free money, they can not reliably place and prefer to convert into foreign currency investments in the underground economy or transferred abroad.

Long acting deep crisis of public finance also affects the formation of the banking system, inhibits the formation of a purely market mechanism of banking regulation, the establishment of civilized relations between the commercial banks. NBU forced the major part of his senerazha directed to monetization of the budget deficit, limiting to a minimum the refinancing of commercial banks. Through artificially drive interest rates on T-bills the banks are forced to direct their resources primarily in government securities as the most profitable assets, restricting lending to the real economy.

In conditions of high inflation forced the NBU for a long time (1994-2000 gg.) Restriction to a tight monetary policy, which is also not to assist the formation of the banking system of market type. 3 of one hand, such a policy is holding back the process re-monetization of the economy, the formation of free money capital, money market, which narrows the economic base of the intermediary banks. On the other hand, the NBU has to frequently switch to "manual" guide money market, using the most stringent, and even direct administrative measures monetary regulation for which the interests of the monetary policy is not in the interest of commercial banks.

                                                       CONCLUSION

The banking system is a major part of the credit of the State. It consists of two levels: the first in Ukraine by the National Bank of Ukraine, the second - the commercial banks. The essence of the banking system is the system of relationships in the banking market, which allows to handle money circulation and thus - to support the functioning of the economy of the state.

The role of the banking system in the economy is determined by its functional characteristics. Although the banking system of Ukraine and built functionally independent of any sector of the economy, its relationship with other branches of the economy are undeniable, and sometimes even decisive. Thus, the banking system is the main source of funds urgently needed for the functioning of various economic subsystems. She is involved in the distribution and redistribution of wealth through the credit system tools. In addition, the banking system now takes over a greater part of cash flow, bringing it into the sphere of non-cash payments.

During the subsequent development of the Ukrainian banking system should not only could not be greater use of foreign experience, but do not forget the historical features of the country.

Today, Ukrainian banks have shifted to the international standards of accounting and reporting, but the work in this direction is not over. The use of modern accounting standards and folding sheets, and regular publication of balance sheets, profit and loss statement will promote greater transparency in the banking system, and gradually increase the confidence in the banks. Therefore, we can conclude that the reform of the banking system of Ukraine today produced tangible results for the national economy and the restructuring of society. At the same time, the coordinated interaction of all sectors of the economy can only be achieved through economic growth. Then the banks will be able to effectively perform their tasks, which stood in front of them at the stage of transformation.

The commercial banks directly covers all areas of the market economy - production, distribution, exchange and consumption. There is not a single organization or entity that would not have been a customer of credit institutions. That credit is a factor that greatly ensures the continuity of the extended reconstruction of the economy.

Through bank loans solved the contradiction between the amount of the funds released from the lender, and the size of the needs of the borrower. In these circumstances, with the economy monetary and commodity relations are increasingly transformed into monetary essentially acquired leveraged nature. This is based on the huge role of credit and commercial banks to provide it as the main carriers of credit relations for the effective functioning of the economy as a whole.

Summing up all the work for one can say that the domestic banking system is going through hard times. The reason for this is the increased competition between banks, unstable socio - economic situation, imperfect and constantly changing legislation, and risky lending policies of many banks in the pursuit of high profits.

In connection with this state-sector lending basic proposal for the further development and improvement of the banking system of Ukraine is the diversification of investment banks' resources and the expansion of services to clients, the conversion fees from client operations in one of the main sources of income of commercial banks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                     REFERENCES

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7. Money and credit: Pіdruchnik / M.І. Savluk, AM Frost, MF Pudovkіna that іn.; For zag. Ed. M.І. Savluk. - K.: KNEU, 2001. - 602 p.

8. Money, credit, banks are: Tutorial / Ed. OI Lavrushina. - D34, 2nd ed., Rev. and add. - Moscow: Finance and Statistics, 2000. - 464.: ill.

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10. http://www.bank.gov.ua/ Official Website of the National Bank of Ukraine.