POSITIVE AND NEGATIVE FACTORS OF INFLUENCE OF FOREIGN CAPITAL ON THE BANKING SECTOR OF UKRAINE
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Abstract
Introduction. In today's world, there are more than 100 countries, which have introduced some or other restrictions on foreign banks' access to domestic banking services markets. Undoubtedly, the entry of foreign banks into the banking system of Ukraine, caused by globalization and integration, is objectively necessary process, contributes to capital inflow, revitalization of market competition, improvement of banking services. At the same time, this process is not without certain risks, for example, the threat of loss by domestic banks of their own positions in the currency market of Ukraine.
Purpose. The purpose and tasks of the study are to determine the main positive and negative factors of the influence of foreign capital in the banking sector of Ukraine.
Methods. Analysis, synthesis, monographic, graphical methods.
Results. It should be noted that the share of foreign capital in the domestic banking system has already exceeded 54%. Therefore, the regulator needs to take certain measures to regulate the situation in the banking system. On the one hand, it is rational to use the principle of the national regime. However, assessing the imperfection of domestic legislation, as well as some macroeconomic factors, it is obvious that this will form certain risks for foreign banks and minimize the attractiveness of the financial sector for investments in general, so the principle of reciprocity and consolidated supervision is appropriate. The application of the principle of consolidated supervision will allow to monitor the activities of foreign banks.
Excessive concentration of foreign banks on one of the segments of the banking services market in order to exclude further monopolization and dictate of prices for banking services should be countered by rationing assets by the National Bank of Ukraine. The increase in the share of foreign capital in the banking sector should occur gradually as the favorable domestic conditions and competitiveness increase.
Originality. Particular attention should be paid to the strengthening and further development of banks with state capital, the development of a regulatory and legal framework for regulating the activities of foreign banks and clear rules for the sale of banks with domestic capital to foreign owners. The implementation of such measures will, if not neutralize, at least minimize the negative effects of foreign capital on the banking sector of Ukraine.
Conclusion. It is clear that the outflow of foreign, primarily European capital is not a positive development. With the decrease in the number of Western investors, the development of risk management of the introduction of European standards and transparency of the banking business is hampered. It is proposed to seek ways to develop and strengthen the banking system of Ukraine, primarily in its domestic component, and also to protect it from the inflow of unreliable and disinterested capital that is not interested in the national development of Ukraine's economy. Stable functioning of the banking system has caused a transition to a qualitatively new level of financial regulation and supervision and to ensure the stability of the financial and credit system as a whole.
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