Influence of banks with foreign capital participation on ensuring the integration of Ukrainian economy into international financial field

Anatolii Drobiazko
PhD in Economics, Leading Researcher of the DNNU «Academy of Financial Management», Professor of Banking Department, SU «Kyiv National Economic University named after V. Hetman», Ukraine, e-mail: adrobyazko@ukr.net, ORCID ID: https://orcid.org/0000-0002-0453-0709

Oleksandr Liubich
Doctor of Economics, Professor, Honored Economist of Ukraine, Head of Budget and Taxation and Monetary Policy Coordination Department, DNNU «Academy of Financial Management», Ukraine, e-mail: alyubich@ukr.net, ORCID ID: https://orcid.org/0000-0002-9339-4242

Cite this article:

Drobiazko, A., Liubich, О. (2018). Influence of banks with foreign capital participation on ensuring the integration of Ukrainian economy into international financial field. Ed.: M. Zveryakov (ed.-in-ch.) and others [Vplyv bankiv za uchastiu inozemnoho kapitalu na zabezpechennia intehratsii ekonomiky Ukrainy v mizhnarodnyi finansovyi prostir; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (66), pp. 196‒209.

Abstract

The article gives a brief history of the entry of foreign capital into the banking system of Ukraine. On the banking market of Ukraine there are foreign banks represented by the subsidiaries of residents: Austria, France, Italy, Germany, Sweden, Poland, Greece, Cyprus, Hungary, Netherlands, USA, Turkey, Kazakhstan and Russia. These banks have withstood two deep crises that took place in Ukraine in 2008 and in 2014‒2015 and continue to develop successfully. A separate cluster presents financial indicators calculated for banks with Russian capital. The article analyzes the market positions of banks with foreign capital in the modern Ukrainian market and achievements of banks over the first quarter 2018. Comparative dynamics of key indicators of the leading clusters of banks by the origin of capital over the first quarter of 2018 is given: with state, private Ukrainian, Western and Russian capital. The indicators of the main articles of assets, liabilities, capital, as well as the factors that have the greatest impact on the current state of banks with foreign capital are considered. Financial opportunities for foreign investors for safe entry into the Ukrainian economy are shown. Systemic losses of banks with state-owned Russian capital, which need constant support from the parent structures, are also investigated. This article is a continuation of the study of the state and prospects for the development of banks with state Ukrainian capital; in addition, research on the current state of private Ukrainian banks is being prepared.

Keywords

regional banks; banking institutions; distribution of banks by clusters; financial condition of banks; banks with foreign capital; security of investments.

JEL classification: G210; DOI: https://doi.org/10.33987/vsed.2(66).2018.196-209

UD classification: 336.63

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