Asset operations of Ukrainian banks on the current stage of banking system development

  • Released On
    Wednesday, 26 April 2017
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  • DOI
    http://dx.doi.org/10.21511/bbs.12(1-1).2017.04
  • Article Info
    Volume 12 2017, Issue #1 (cont.), pp. 119-127
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The aim of the article is to characterize the real stage of realization of asset operations of the Ukrainian banks on the current stage of banking system development. For this aim the analysis of the Ukrainian banks activities within the period of 2011-2016 year is made. The official statistical data of the National Bank of Ukraine on asset operations of the Ukrainian banks and indicators of economic norms of banking were used. Thus, the current stage of credit operations realization by the banks of Ukraine, credit risk of the Ukrainian banks, and investment operations of the banks of Ukraine and the level of their investment risk were researched.

It has been elicited that the most numerous operations among all of the asset operations of the Ukrainian banks throughout the study period were credit operations, the volume of which, regardless of the decrease in 2013 and 2016, had a clear tendency for increase. It has been calculated that within the study period the share of loans to business entities was continuously increasing, while the share of loans to private individuals was continuously decreasing, which led to the significant change in the proportions between these two groups of loans. It has been substantiated that the whole banking system was implementing the regulatory standards of credit risk set by the National Bank of Ukraine throughout the whole study period, which signifies that the credit activity of the Ukrainian banks was being conducted in the regulatory framework set by the authorities.

Investment operations of the Ukrainian banks in the period of 2011-2016 constituted the second largest group among all of the asset operations. It has been determined that their volume increased significantly within the study period and as a result their share in the general volume of asset operation of the Ukrainian banks increased as well, which signifies a certain diversification of asset operations of the Ukrainian banks.

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    • Fig. 1. Dynamics of volumes of assets of domestic banks of Ukraine as well as loans provided by them in the period, mln UAH * **
    • Fig. 2. Dynamics of the share of loans in the assets of the banks in Ukraine throughout the period of 2011-2016, %*
    • Fig. 3. Structure of the bank loans in Ukraine in the period of 2011-2016, %
    • Fig. 4. The dynamics of asset operations of the Ukrainian banks (investments in securities and loans provided) in the period of 2011-2016 *
    • Fig. 5. The comparison of the correlation of the loans provided and investments in securities as of January 1, 2011 and January 1, 2016 *
    • Table 1. Credit operations in the structure of asset operations of the domestic banks in the period of 2011-2016., mln UAH*
    • Table 2. Credit risk regulative standards of the National Bank of Ukraine in the period of 2011-2016*
    • Table 3. The analysis of bank operation with securities (investments insecurities) in the period of 2011-2016*
    • Table 4. Values of the investment regulatory standards of the National Bank of Ukraine on average within the banking system in the period of 2011-2016 *
    • Table 5. Asset operations provisions of the Ukrainian banks in the period of 2011-2016*