FOREIGN CAPITAL IN THE BANKING SYSTEM OF UKRAINE AND ITS IMPACT ON THE STATE’S FINANCIAL SECURITY

The article highlights the importance of foreign capital in the development of the banking system of Ukraine and its impact on the financial security of the state and the development of the national economy. The increase in the amount of foreign capital in the banking system is the result of the strengthening of globalization processes and the integration of Ukraine into the world community, which in turn increases the threats that arise on the way of the state macroeconomic policy. The dynamics of the number of operating banking institutions as a whole and of banks with foreign capital in particular over the last five years are presented. Banks with 100% foreign capital in Ukraine by countries of origin and their owners in the corresponding dynamics are analyzed. The foreign capital structure of the banking system of Ukraine by countries of origin has been evaluated. The dynamics of equity of banks of Ukraine and equity of foreign banking groups by state and its share in the total equity of banks of the second tier of the banking system are investigated. The positive and negative influence of the foreign capital of the banks of Ukraine on the functioning of the national economy and ensuring the financial security of the state are outlined. In order to prevent the monopolization and excessive concentration of the influence of foreign capital on the functioning of the banking system and ensure the financial security of the state, it is proposed to: ensure an adequate level of transparency of sources of foreign capital inflow into the domestic banking system; minimize the share of non-bank money circulation by reaching the European level of monetization of the national economy; to ensure, at the legislative level, the protection of the Ukrainian creditor banks in priority sectors of the national economy; to protect the interests of depositors in banks with foreign capital and improve the regulatory mechanism and procedures for supervision of foreign banks; to improve the state policy of development and maintenance of competitiveness of national banks; to avoid outflow of domestic capital in a crisis, by setting restrictions on the activities of banks with foreign capital.