Shvager O.D., Usachev V. A.

Donetsk National University of Economics and Trade named after Mikhailo Tugan-Baranovsky

DEVELOPMENT OF BANKING SYSTEM IN UKRAINE

The banking system of the state reminds the blood-vascular system of human organism, because it is the unique system, submitted to one main objective: to provide the effective circulation of financial resources in the state. Development of economy and efficiency of motion of financial resources depend on rationally organized banking system its correspondence with economic policy of the state, the stage of economy development.

Structure of the banking system, as a part of the economic system, is the result of historical development. The banking system is not in the static state. It develops constantly, as well as economic relations in society.

The Ukrainian banking system takes beginning with 20 of March, 1991, from the moment of passing an Act of Ukraine «About banks and bank activity».

At this time the Ukrainian branch of the State Bank of the USSR is transformed in National Bank of Ukraine. After disintegration of the USSR Ukraine got three branches: «Promstroybank» which executed the functions of State Bank, Savings bank and «Vneshekonombank». Hardly later these banks transformed into independent units, executing different functions.

Nowdays Savings Bank is presented by «Oschadbank», «Ukreksimbank» is created on the basis of flat-broke Moscow «Vneshekonombank», and «Promstroybank» was divided into three joint stock banks, each occupied the specialized niche.

As for commercial banks, they began to appear as early as times of the USSR, and Ukrainian SSR was not an exception. In 1989 the first Donetsk non-state «Icarus-bank» appeared, in 1990 «Ukrainian Commercial Bank of business collaboration» was registered, which is called now: «Finances and credit».

The feature of the first commercial establishments was that they were created mainly on the co-operative beginnings. In spite of the fact that in future commercial banks began to grow, as the mushrooms after rain, they were not equal to state banks. Moreover, at the beginning and the middle of 90^th a greater part of bank capital was concentrated in the capital.

Besides, the absence of own steady monetary item was one of main problems of all financial system of Ukraine. Therefore, in 1996 the introduction of national currency «hryvnya» became one of main events of the last decade of the last century.

The second half of 90th is characterized by an unsteady economic equilibrium and sharp increase of new business bank corporations. So, at the beginning of 1997 there were already 188 commercial banks in the register of NBU the share of their combined assets, in general complication, consists of more than 40%. Nevertheless, far not all of them possessed necessary financial stability. By this time there was remained only 2 state banks in a country, as «Prominvestbank» got independent status and became one of characters of bank reliability up to 2008. At the same time, the crisis of non-payments, which overcame a country since 1994 - 1995 had an impact.

In the third millennium, in spite of the certain defects of domestic credit-financial institutes, stabilizing of bank sector, playing a key role in sanitation of all economy in whole, was attained. By efforts of NBU and legislative-executive power the course of hryvnya differed from key currencies because of its stability, growth of GDP went up every year, in spate of political oppositions. All went on the rolled way, while a financial crisis did not ring out.

In 2009 the banking system of Ukraine showed the deceleration of rates of crediting, the decline of credit activity, qualities of assets related to worsening, the growth of stake of doubtful and hopeless credits, the increase of risks of crediting in the conditions of reduction of consumer demand and incomes of companies of unfinancial sector.

During three years after a crisis of 2008 year, the banking system of Ukraine is stabilized and strengthens the positions. But, in spite of separate achievements in the common economical stabilizing, the domestic banking system continues to function in an unfavourable economic environment.

Thus, the banking system of Ukraine passed a difficult evolutional way and presents a market model, which is divided into two levels.

The first level is presented by the National bank of Ukraine with a central machinery in Kiev and territorial regional branches, and also by calculation-cash centers in cities and districts.

The National Bank of Ukraine in accordance with Law of Ukraine «On the National bank of Ukraine» is the central bank of country, special central organ of state administration, its emission center which pursues a single public policy in industry of money circulation, credit, strengthening of monetary item, organizes interbank calculations, co-ordinates activity of the banking system in whole, the exchange rate of monetary item determines in relation to currencies of other countries. The National bank of Ukraine sets the order of determination of discount rate and other interest rates after the operations, accords permission on creation of commercial banks byway of their registration and gives out licenses to implementation of bank transactions, sets banks and other financial institution the norms of the obligatory reservation of facilities.

The second level of the banking system of Ukraine is presented by commercial banks.

Commercial banks play a key role in the commercial turn of commodities and services. They give the participants of economic activity possibility to carry out calculations on the concluded contracts and agreements, using the infrastructure of the banking system and pay instruments; as a financial mediators, they provide into an economy a process «saving of investment».

In whole the banking system, which was formed in Ukraine during the period of independence, in spate of the limited resource possibilities, financial crises and other cataclysms, develops enough rapid rates.

The powerful banking system is the necessary condition of stable, balanced development of economy of Ukraine and actually it is a guarantor of financial safety of the state.