UKRAINIAN BANKING SYSTEM CAPITALIZATION INDICATORS: FACT STATE AND COMPARATIVE CHARACTERISTIC WITH POLAND, SWITZERLAND AND GERMANY
Introduction. The development of both the banking sector of the country and the entire economy is dependent on the level of capitalization, because its insufficiency hinders economic development. That is why the study of capitalization, as well as finding ways to increase it, is relevant.
There are different indicators of determining the level of banking sector’s capitalization, but the main one is the share of banks' capital in GDP. However, in practice, the dynamics and structure of banks’ capital and the its usage efficiency are often analyzed.
The purpose of the article is to analyze the banking system capitalization, to make comparative characteristic with Poland, Switzerland and Germany, as well as to develop theoretical and applied recommendations on the formation of bank capital and increase the Ukrainian banking system capitalization.
Results. The level of Ukrainian banking system capitalization was determined on the basis of the share of banks' capital in GDP for 2000-2019. The decrease in the level of Ukrainian banking system capitalization by the analyzed indicator is caused by several factors: 1) excess of GDP growth rate over the growth rate of bank capital; 2) significant decrease in the number of banks in the banking system of Ukraine and, as a result, a decrease in banking capital. The main share in the banks’ capital structure is the authorized capital, which is formed due to the owners’ funds. Uncovered loss, which reaches more than 100% from 2016 to 2019, has a negative impact on the amount of equity, that is, in the post-crisis period there is an accumulation of uncovered loss in the banking system of Ukraine. Despite the large number of banks in the Ukrainian banking system, 49.96% (half) of the banking system’s capital is accounted for by only 5 banks.
Considering the significant changes in the banking system of Ukraine that have come under the pressure of financial crises and as a result of the implementation of international standards of banking regulation, we consider it advisable to perform a comparative analysis of the capitalization of the banking systems of Ukraine, Poland, Switzerland and Germany. We can say that the National Bank of Ukraine should consider the experience of Germany in the reorganization and capitalization of the banking system, since 2012 they become similar in structural indicators. The experience of Poland was useful in the period 2010-2014, but in the current conditions banking systems of Ukraine and Poland are beginning to differ significantly.
Conclusions. The research results have showed a low level of Ukrainian banking system capitalization, revealed the prospects of applying the capitalization management experience of other countries in the Ukrainian economy. It is necessary additional capitalization of the Ukrainian banking system, because banking risks are significant, requiring increasing bank capital and requires a volume increase of banking activities in general and its role in the formation of Ukraine's GDP in particular.
2. Blashchuk-Deviatkina N. Z., Petyk L. O. (2017) Kapitalizatsiia bankivskoi systemy Ukrainy [Capitalization of the banking system of Ukraine]. Ekonomika. Finansy. Pravo – Economic. Finance. Law, 4(1), 12-15 [In Ukrainian].
3. Andrushchak Ye. M., Shchurevych O. I. (2018) Problemy kapitalizatsii bankivskoi systemy Ukrainy [Problems of capitalization of the banking system of Ukraine]. Stratehiia ekonomichnoho rozvytku Ukrainy – Strategy of economic development of Ukraine, 42, 128-138 [In Ukrainian].
4. Ofitsiinyi sait Natsionalnoho banku Ukrainy [Official site of the National Bank of Ukraine]. Retrieved from: http://www.bank.gov.ua.
5. Gudź P. V., Firman R. V. (2014) Analiz kapitalizatsii komertsiinykh bankiv Ukrainy ta shliakhy yii naroshchennia [Analysis of the capitalization of commercial banks of Ukraine and ways to increase it]. Ekonomichnyi forum – Economic Forum, 3, 241-247 [In Ukrainian].
6. Vasylchenko Z. M., Domanetskyi I. V. (2013) Kapitalizatsiia bankiv Ukrainy: suchasnyi stan ta problemy naroshchennia [Capitalization of Ukrainian banks: current state and problems of growth]. Finansovo-kredytna diialnist: problemy teorii ta praktyky – Financial and credit activity: problems of theory and practice, 1(14), 3-10 [In Ukrainian].
7. Vdovenko L. O., Chernenko O. S. (2017) Vysokyi riven kapitalizatsii - osnova zmitsnennia bankivskoi systemy Ukrainy [High level of capitalization - the basis of strengthening the banking system of Ukraine]. Ekonomika. Finansy. Menedzhment: aktualni pytannia nauky i praktyky – Economy. Finance. Management: actual issues of science and practice, 4, 84-96 [In Ukrainian].
8. Dobrovolska O. V., Khalatur S. M. (2016) Kapitalizatsiia bankiv Ukrainy v umovakh hlobalizatsii finansovykh rynkiv [Capitalization of Ukrainian banks in the conditions of globalization of financial markets].Visnyk Dnipropetrovskoho derzhavnoho ahrarnoho universytetu – Bulletin of the Dnipropetrovsk State Agrarian University. Retrieved from: http://nbuv.gov.ua/UJRN/vddau_2016_2_48 [In Ukrainian].
9. Lysenok O. V. (2013) Kapitalizatsiia vitchyznianykh bankiv ta yii vplyv na valovyi vnutrishnii produkt [Capitalization of domestic banks and their impact on gross domestic product]. Visnyk Zhytomyrskoho derzhavnoho tekhnolohichnoho universytetu. Ser. : Ekonomichni nauky – Bulletin of the Zhytomyr State Technological University. Avg. : Economic Sciences, 2, 261-266 [In Ukrainian].
10. Lysenok O. V., Liakhovetska V. M. (2017) Suchasnyi stan ta shliakhy pidvyshchennia rivnia kapitalizatsii vitchyznianykh bankiv [The current state and ways of increasing the level of capitalization of domestic banks]. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Ser. : Ekonomichni nauky – Scientific Bulletin of the Kherson State University. Avg. : Economic Sciences, 27(3), 55-58 [In Ukrainian].
11. Nieizviestna O. V., Verych H. O. (2016) Problemy kapitalizatsii bankivskoi systemy Ukrainy ta rekomendatsii shchodo yikh vyrishennia [The problems of capitalization of the banking system of Ukraine and recommendations for their solution]. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu. Seriia : Ekonomika i menedzhment – Scientific Bulletin of the International Humanities University. Series: Economics and Management, 22, 141-144 [In Ukrainian].
12. Ostrovska N. S., Shvets O. Yu. (2017) Kapitalizatsiia bankivskoi systemy: suchasnyi stan ta perspektyvy u transformatsiinykh umovakh rozvytku ekonomiky Ukrainy [Capitalization of the banking system: the current state and prospects in the transformational conditions of economic development of Ukraine]. Prychornomorski ekonomichni studii – Black Sea Economic Studies, 21, 145-150 [In Ukrainian].
13. Shvets Yu. O., Vernydub M. Yu. (2016) Problemy ta sposoby pidvyshchennia kapitalizatsii bankiv Ukrainy [Problems and ways of raising the capitalization of Ukrainian banks]. Investytsii: praktyka ta dosvid – Investments: practice and experience, 8, 52-57 [In Ukrainian].
14. Shevchuk A. M. (2017) Analiz kapitalizatsii bankivskoi systemy Ukrainy [Analysis of capitalization of the banking system of Ukraine]. Naukovi zapysky Natsionalnoho universytetu «Ostrozka akademiia». Seriia : Ekonomika – Scientific Notes of the National University “Ostroh Academy”. Series: Economics, 4, 186-192 [In Ukrainian].
15. Shevchuk A. (2018) Pidvyshchennia kapitalizatsii bankivskoi systemy ukrainy shliakhom makroprudentsiinoho rehuliuvannia natsionalnoho banku Ukrainy [Increasing the capitalization of the Ukrainian banking system by macroprudential regulation of the National Bank of Ukraine]. Naukovyi visnyk Odeskoho natsionalnoho ekonomichnoho universytetu – Scientific Bulletin of the Odessa National Economic University, 8, 190-211 [In Ukrainian].
16. Dmytrenko I. B. (2019) Suchasni pidkhody do otsinky dostatnosti (adekvatnosti) kapitalu bankiv v Ukraini [Modern approaches to the assessment of capital adequacy (adequacy) of banks in Ukraine]. Vcheni zapysky Tavriiskoho natsionalnoho universytetu imeni V. I. Vernadskoho. Seriia : Ekonomika i upravlinnia – Scientific notes of Taurida Vernadsky National University. Series: Economics and Management, 30(69), 4(1), 120-127 [In Ukrainian].
17. Husieva Yu. Yu., Baitaliuk S. V. (2012) Diahnostyka rivnia kapitalizatsii bankivskoi ustanovy [Diagnosis of the level of capitalization of a banking institution]. Ekonomika ta upravlinnia pidpryiemstvamy mashynobudivnoi haluzi – Economics and management of enterprises of machine-building industry, 2, 75-83 [In Ukrainian].
18. Ofitsiinyi sait Natsionalnoho banku Polshchi [Official Website of the National Bank of Poland]. Retrieved from: http://www.nbp.pl.
19. Ofitsiinyi sait Natsionalnoho banku Shveitsarii [Official Website of the National Bank of Switzerland].Retrieved from: http://www.snb.ch.
20. Ofitsiinyi sait Federalnoho banku Nimechchyny [Official Website of the Federal Bank of Germany]. Retrieved from: http://www.bundesbank.de.