Actual problems of the capital stability management in the Ukraine’s banking system

  • Received May 4, 2017;
    Accepted June 6, 2017;
    Published June 23, 2017
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  • DOI
    http://dx.doi.org/10.21511/bbs.12(2).2017.06
  • Article Info
    Volume 12 2017, Issue #2, pp. 60-67
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Capital stability of the banking system is the basis of its effective development and realization of its main function – optimal redistribution of capital. So, the aim of the article is to develop indicators of capital stability of the banking system, and to propose the frameworks for the long term capital stability strategy of the banking system in Ukraine. For this purpose, the analysis of micro- and macroeconomic indicators of the capital stability of domestic banks within the period 2007–2016 is made. To carry out the research, there were used the statistic data of the National Bank of Ukraine, its legislative and regulatory documents, the Basel Accords.

Capital stability of the banking system has been defined in the article as the process of ensuring capitalization that is adequate to the banking risks and cyclical economic development. It has been detected that a significant reduction in return on equity of the Ukrainian banks in 2014–2015 even with restoring their liquidity has had a crucial destabilizing impact on their capital stability. In order to improve the assessment of capital stability, its key indicators for the groups of domestic banks have been studied. The necessity of refocusing macroprudential requirements of the National Bank of Ukraine from quantitative indicators to qualitative ones to ensure economic development has been proved. It has been concluded that a necessary condition for restoring the Ukrainian banking system was to develop an effective strategy for ensuring its capital stability, which should be focused on the creation of its diversified structure.

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    • Fig. 1. Dynamics of basic factors that determine variations of capital stability of Ukrainian banks in the period of 2007–2016, %
    • Fig. 2. The results of ensuring of banking system capital stability depending on the choice of macroprudential requirements’ indicators
    • Table 1. Macro- and microeconomic indicators of the capital adequacy of the banking system of Ukraine in 2007-2016*, %
    • Table 2. Key capital stability indicators of the groups of solvent banks of Ukraine in 2016*, %