As for stabilization of the banking system and the exchange rate

Main Article Content

V.M. Furman

Abstract

Introduction. At the hearings to stabilize the banking system and hryvnia (in 2015 there were more than three of them) often expressed opposing views of the deputies, officials and experts, who said only one thing - we do not have at present a clear strategy of action.


Constant talk and promises of reform today are not accepted by society and the reaction of people can be quite unpredictable, as the economy and the state of the banking system now is the worst in the CIS.


Purpose. Analysis of the experience of the other countries out of the economic and financial crisis should show ways of solving pressing problems for our state. The Great Depression in the United States is a classic example of the financial crisis of the market economy. Study the methods to go through the crisis that were applied by different countries may be very useful for Ukraine.


Methods. Generalization, ordering, causal method, expert method.


Results. The experience of leading countries for the banking system and the exchange rate stabilization was analyzed. Types of interest rates decrease on the loan and deposit markets, monetization for banks and investment processes stabilization were also offered here.


Originality. The important steps that will make it possible to stabilize the financial system and ensure the growth of production and consumption, GDP growth, reducing inflation, stabilizing the exchange rate are offered. With proper macroeconomic policies and measures from the government to stimulate the economy Ukraine even without massive foreign investment our country can be in a year out of the crisis, and in two or three years can become one of the most rapidly growing economies in the world.


Conclusion. Considering the global experience to overcome the crisis and economic reforms Ukraine must:


1. Develop and adopt laws that will limit the size of loan and deposit rates in the Ukrainian banking market.


2. National Bank of Ukraine should urgently saturate the economy of Ukraine with money and reduce interest rates. NBU should only lend the projects that create value added tax (infrastructure construction, priority national projects). Infrastructure projects will serve as a catalyst for economic growth.


3. Existing loans (both in currency and in hryvnia) should be restructured with the new interest rates, which will allow borrowers not to go bankrupt and to continue to service the loans, and thus save the banking system.

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References

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