CURRENT TRENDS IN ANTI-CRISIS MANAGEMENT OF THE BANKING BUSINESS
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Abstract
Introduction. The global financial crisis of 2007-2008 gave impetus for global changes in the banking business in the world, caused a total revision of capital reserve norms, serious changes in the economic, credit and financial spheres, as well as structural changes in the banking services environment and increased requirements for liquidity and stability of financial institutions. Large international banking groups were forced to adapt to the new competitive environment, which is characterized by a significant decline in profitability indicators, revolutionary shifts in the financial services market associated with the introduction of new banking products and the emergence of new players in the banking market.
Purpose Analysis of the main trends in the development of anti-crisis management in the banking business and the formation of models for early warning of banking crises.
Results. Based on the analysis of the role of state capital in the banking system in many countries, the article focuses on the significant share of state capital in the Ukrainian banking sector, where the share of state-owned banks is several times larger than in Eastern European countries. Despite the fact that the share of state-owned banks in net assets continued to decrease during 2020, more than half of the assets of the Ukrainian banking system belong to state-owned banks. Therefore, the article proposes the development of a state strategy for the privatization of state banks in Ukraine. It was argued that in order to avoid or at least mitigate the consequences of future financial crises, it is necessary to formulate a clear theoretical and economic basis for the driving factors of the crisis and to have effective models for their early warning. The article shows that such models should show in the early stages of an increase in financial imbalance and systemic risk in the country's economy.
Originality. The article analyzes modern trends in the development of anti-crisis management systems in the banking business in the context of the new requirements of national and international regulators and standards "Basel III". Special emphasis was placed on comparing the features of anti-crisis management in banking in Ukraine, global systemically important banks and the banks in countries of Eastern and Central Europe.
Conclusion. The analysis showed that banks have made significant changes to their business models since the global financial crisis. The profitability of almost all business lines of banks has become significantly lower than the pre-crisis indicators, while the greatest decrease in profitability is observed in investment and corporate banks, which were most affected during the crisis and faced the most significant increase in the requirements of Basel III and national regulators. A significant part of the state capital in the Ukrainian banking system carries many risks in the long term, since such a policy of mass nationalization of commercial banks and, as a result, the domination of state capital in the banking business may make sense only in the short term, while in the long term it can lead to a decrease in the efficiency of banking sector.
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