Integration of Ukraine into the European banking system: cleaning, rebooting and Basel III

  • Released On
    Tuesday, 19 December 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.12(4-1).2017.05
  • Article Info
    Volume 12 2017, Issue #4, pp. 163-174
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The urgency of the issue is related to changes in the Ukrainian banks’ business environment, taking into account the impact of domestic and global financial instability and the implementation of the regulatory framework for banking regulation of the National Bank of Ukraine in accordance with the Basel Committee on Banking Supervision recommendations. The main goal of this research is to analyze the degree of implementation and compliance with the Basel III regulations in Ukrainian banking system. To carry out the research, regulatory and legislative documents of the National Bank of Ukraine, the Basel Accords, statistic data of the Ukrainian banks and the National Bank of Ukraine were used. For this purpose, the analysis of main indicators of Ukrainian banks’ financial stability within the period of 2014–2017 is made. Thus, post-crisis regulatory changes have aimed at restoring bank stability. The results seem to suggest that bank regulatory changes may be repressive, for instance, cleaning and optimization of the banking system as an effective tool for anticrisis management. As a result, it was concluded that banks with foreign capital are the most stable in the banking system of Ukraine in comparison with domestic banks.

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    • Figure 1. Dynamics of changes in the number of banks in Ukraine (2016–2017), pcs
    • Figure 2. Gross external debt of banks, USD bln
    • Figure 3. The number of unprofitable banks, pcs
    • Figure 4. Net loans by groups of Ukrainian banks, %
    • Figure 5. Net deposits of the population by groups of banks, %
    • Table 1. The main stages of Basel III implementation (2013–2019)
    • Table 2. The main stages of implementation of new requirements for capital in Ukraine (2015–2020)
    • Table 3. Loans for a new car of foreign production (dated November 2017)