FUNCTIONING OF BANKING INSTITUTIONS IN UKRAINE DURING THE PANDEMIC PERIOD

Abstract

Abstract. The article considers the special conditions of functioning of Ukrainian banks during the coronavirus pandemic.

The interdependence of processes in the national economy and the state of its banking system was investigated, in particular the negative impact of the crisis on the banking business in terms of increasing risks, especially credit risks. As a result of the analysis, it was found that the banking system of Ukraine before the pandemic was stable, recapitalized and liquid due to the reforms of 2016-2019, but the new challenges required completely new approaches to overcoming them. The actions of the NBU anti-crisis program have been taken to increase the financial security of both the state and the banking sector in the context of certain areas are analyzed, namely: credit and deposit activities of banks, monetary policy, payments and the banking system overall. Foreign experience in overcoming the current crisis caused by the pandemic indicates that the main emphasis should be on supporting the economy through corporate financing, especially those areas that have suffered the greatest losses due to the suspension of its activities, so it is necessary to refocus the banking sector in order to prevent mass bankruptcies. The dynamics of the NBU discount rate and the level of interest rates on interbank and commercial loans in Ukraine are analyzed and it is established that the cost of resources remains quite high, despite the reduction of the discount rate by the central bank.The necessity of involving banks in solving the problem of economic downturn on the example of developed countries through the revision of interest rate policy and the provision of cheap loans to enterprises is substantiated. Based on the study, we proposed some ways to support the national economy by lending to small and medium-sized businesses through state-owned banks, the development of loyalty programs for banks that provide loans to enterprises that have suffered losses due to the crisis from COVID-19. The accelerated development of electronic and mobile banking in the conditions of limited provision of services by banking branches opens new opportunities for banks and their customers in many areas of society.