Economic and legal aspects of banking security under European integration intensification in Ukraine

In the period of Ukraine’s integration into the European economic space, one of the basic conditions for achieving compliance with the European community requirements is the formation of favorable investment environment. In view of this, the aim of the article is to analyze the economic preconditions for the unification and adaptation of the investment mechanism in the period of Ukraine’s integration into the economic euro area, and to develop recommendations for unification of institutional support for the formation of the investment environment in Ukraine. In the course of the study, the system approach and the method of system analysis and synthesis are the basis. Based on the analysis of the activities in Poland, it is outlined that the conditions for their achievement of high rating indicators are the legally regulated mechanism for promoting investment, which includes relevant institutions, low tax rates, transparency and ease of doing business. The comparison made on this basis has made it possible to determine key differences and problems between approaches of European countries and Ukraine, namely: the lack of correspondence between the actual measures legally declared, the monetary unit instability, the unpredictability of the political and economic situation, the complexity of doing business. Approaches to unification of institutional support for the formation of the investment environment in Ukraine and measures aimed at increasing the efficiency and competitiveness of investment activity are proposed.

Ukrainian banking institutions conduct their activity under the influence of various risks, which create critical situations for them. In this context, banks should pay more attention to their own security. The article analyzes the theoretical approaches to the concept of “banking security”, examines the level of banking security as a component of the financial and economic security of the state, and determines the ways to improve it. Banking security was analyzed based on the data of the National Bank of Ukraine and other banks that are part of the banking system of the country.
The current state of the banking system shows a decrease in the security since 2014 to the “danger zone”. This is facilitated by a great number of problem loans and foreign capital in the authorized capital of banks; the predominance of short-term lending over long-term one; continued unprofitableness and low liquidity of bank assets. Banking security was the guarantor of achieving financial security of the state. Therefore, the article outlines directions for improving the operation of banking institutions and the banking system as a whole, which will allow to improve banking security in the short term. This is, first of all, the legislative consolidation of the creditor rights protection, the expansion of the lending process, including in foreign currency, with the predomi-nance of long-term loans, the banks’ work in the direction of increasing their assets profitability, optimizing administrative costs, developing and using the latest informa¬tion technology to ensure the effective operation and information security of banks.