Banking Sector of the Economy of Ukraine: Review of Major Trends and Development Prospects

The banking sector of Ukraine is going through a deep crisis, the way out of which was delayed. One of main destructive factors of development of the banking sector of Ukraine is the unweighted policy of the central bank of the country. The lack of development strategy, unjustified use of administrative measures of influence, politicized management system led to the formation of a significant set of negative trends in the development of the banking sector. The purpose of the article is to study the state, substantiation of the main trends in the development of the banking sector of Ukraine during 2014-2017, and determining the prospects for its development. In the process of study general scientific methods have been used: induction and deduction, tabular and graphical methods of analysis, analysis of cause-effect dependence. The scientific novelty of the study is to substantiate the main trends in the development of the banking sector in Ukraine and analyze the main of them. Among the most significant trends in the development of the banking sector are: significant reduction in the number of banking institutions; trends of reducing number of banks with foreign capital; the growth of the share of state banks in the structure of assets of the banking system of Ukraine; growth of mistrust towards the activities of banking institutions; outflow of deposits in foreign currency; trends of reducing costs of credit resources in Ukraine; increase of the minimum volume of the authorized capital of banks. The practical significance of the results is connected with the development of a number of recommendations of an applied nature aimed at improving the state of the country's banking sector. It has been concluded that there are significant problems in the development of the banking sector of the country, in particular with liquidity and profitability, which, in turn, negatively affects the provision of the real sector of the economy with the necessary financial resources. Further research will be aimed at developing sets of measures aimed at supporting the sustainable state of national banking institutions, timely neutralizing and preventing the development of destabilizing trends, which will help create the prerequisites for economic sustainability and the stable development of the Ukrainian banking sector on a long-term basis.