Andrii Gukaliuk, Candidate of Economics, Associate Professor, Associate Professor of the Department of Business Economics, Ivan Franko Lviv National University, Lviv, Ukraine

ORCID ID: 0000-0002-7831-0573
e-mail: andrii.gukaliuk@lnu.edu.ua

Yaryna Pas, Candidate of Economics, Associate Professor of the Department of Finance, Banking and Insurance, Lviv University of Business and Law, Lviv, Ukraine

ORCID ID: 0000-0002-3675-2015
e-mail: yaruna86@ukr.net

The Role of the Banking Business in the Post-War Economic Recovery Process of Ukraine

Introduction. In the current economic environment, an effective banking system is a crucial factor for the development of a market economy. The intensified impact of military-political factors has complicated the economic situation in Ukraine, leading to a deepening crisis that, consequently, has affected its functioning. Domestic banks, due to the specific features of their operations, hold a significant status in the market economy and exert a substantial influence on the social and economic development of the country. The entry of Ukraine into the European competitive environment has created a new setting for the banking sector with heightened demands for competitiveness and the provision of financial services. The conditions and key indicators of banks in the financial market have been analyzed.

Purpose. The potential challenges and threats influencing the banking sector today have been outlined. It is determined that timely response will enable the preservation of banking capital from possible losses and formulate prospective directions for seeking profitability in the banking business. The obtained results have practical significance in applying the diagnosis of the banking business’s state and its potential utilization in shaping a strategy for the country’s post-war recovery. This is crucial for making managerial decisions and developing measures aimed at improving the financial stability and operational efficiency of the banking sector in crisis conditions.

Results. It has been determined that with the onset of the Russo-Ukrainian war and the subsequent reduction in the number of banks, the Ukrainian banking system rapidly adapted to the unfavorable and dynamic market environment. The peculiarities of bank operations under the declaration of martial law in the country have been examined, revealing that despite a sharp decline in profitability, the banking business demonstrated financial stability and liquidity.

Conclusions. The results of the conducted research allow for the identification of problematic aspects and the delineation of prospective directions for the development of the banking business. This ensures the resilience and adaptability of banks to new economic realities, contributing to the preservation of their significance in the financial sector and the support of economic stability in the country.

Keywords: bank, banking business; banking system; efficiency; profitability; adaptation; development prospects; current state.

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