Ukrainian banking system efficiency after double reducing of the number of bank institutions

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The article intends to evaluate the efficiency and performance of Ukrainian banking system based on two stages. The first stage, when the number of banks was on average the same during that period, and the second stage, that began in 2015 and when the number of banks began to fall quickly up to 82 institutions in 2018. The study is based on the model of dynamics norm of the banking system efficiency for two periods.
The concept of efficiency was used based on the methods of non-parametric statistic to obtain performance estimates. The implementation of a dynamic model, based on the peculiarities of the banking system functioning, allows to obtain a generalized assessment of the economic efficiency of banking activity before and after critical change in the number of bank institutions. The correlation matrix between financial indicators of the banking system activity was created and the dynamic norm for the two periods was calculated. Given the analytical comparison of indicators, more effective period was identified. The general results of the study indicate that the overall efficiency of the banking system started to grow up since 2015.

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    • Figure 1. Dynamics of number of banks in Ukraine, 2008–2018
    • Figure 2. Forming a model of the banking system a dynamic norm
    • Table 1. Indicators for calculating the dynamic norm
    • Table 2. The matrix of reference preferences for the banking system efficiency
    • Table 3. Input statistic data of the Ukrainian banking system, 2013–2015, in UAH bln
    • Table 4. The matrix of actual ratios of the banking system performance indicators in 2013–2015
    • Table 5. Matrix of matches of actual and reference ratios of the banking system performance indicators, 2013–2015
    • Table 6. Input statistic data of the Ukrainian banking system, 2016–2018, in UAH bln
    • Table 7. The matrix of actual ratios of the banking system performance indicators in 2016–2018
    • Table 8. Matrix of matches of actual and reference ratios of performance indicators of the banking system in 2016–2018