“The banking system of Ukraine”
Fulfilled by: Shatkovska Z.O.BF-21g
Checked by: Kolupaeva I.V
2. The Structure of Banking System of Ukraine
3. Current trends and tendencies of Ukrainian banking system 4. Problems of Ukrainian banking system
5. Perspectives of Further Banking System Development
Banking system is the most important part of the financial system of Ukraine. It is often defined simply as an aggregate of banks functioning in the economy of the country. By such a definition the banking system represents a mechanistic combination of banks without beforehand defined goals, own specific traits and without carrying out of self-dependent aims. But it is false, because banking system is grounded on the concept, in the framework of which a certain place is envisaged for each type of banks. That is why the more appropriate and accurate definition of the banking system could be the following “legislatively defined, clearly structured and subordinated set of financial intermediaries carrying out banking activity on the constant professional basis and functionally integrated into the independent economic structure˝ . The main aim of the individual banks is to obtain profit. Concerning banking system this aim is shifted somewhere behind, while the more important aim is to provide public control and regulation of banking activity in order to reconcile the interests of separate banks with the interests of society. The second important goal is to ensure security and stability of separate banks and the whole system. None of the abovementioned aims is achievable for one bank. Only integration of the banks into the system makes achieving of these goals real. Being intermediaries at the money market the banks act mostly at the expense of the stranger capitals – statutory capital, attracted deposits and loans from other banks. Taking the whole responsibility for the financial risks of their borrowers, banks are constantly under control and pressure of many clients, investors and shareholders. Actions of the clients, investors and shareholders of the banking system are defined not only by economic considerations but also by rumors, expectations and assumptions. That is why it is of great importance for interested group of banking system clients to have reliable and real information concerning current state of affairs in the sector. Real information means objective one, giving positive and negative trends and tendencies. The aim of this essay is to estimate the real state of the banking system of Ukraine for the present. The information could be interesting for potential investors, shareholders and common people. 2. The Structure of Banking System of Ukraine
The evolution of the national banking system in Ukraine started in March, 1991, after the adoption of the Law of Ukraine "On Banks and Banking" by the Ukrainian Verhovna Rada. The Ukrainian banking system is a two-tier structure consisting of the central bank and the commercial banks of various types and forms. Central bank of the Ukrainian banking system is The National Bank of Ukraine which is state owned and has an authorized capital amounting of 10 million UAH. The main function of the country's central bank is to ensure...