State and Prospects of the Development of the Money and Credit Market of Ukraine

Abstract

The article is devoted to the analysis of the state of the money market of Ukraine and the prospects for its development. A necessary condition for ensuring the stable economic development of Ukraine is to ensure the stability of the national monetary unit. The stages of formation and the current state of the banking sector of Ukraine are characterized. However, the introduction of quarantine restrictions (Covid-19) led to a sharp decline in economic activity in the world and in Ukraine. It is predicted that economic growth will resume after the 2020 recession thanks to the adopted monetary and fiscal measures. But compared to the crisis of 2007-2009, the influence of monetary instruments is limited. It was highlighted that quantitative easing programs are the main tool of monetary policy. The priority goals of the monetary policy have been singled out, namely, the main one remains the support of price stability in the state, the promotion of financial stability (including the stability of the banking system). It is noted that price stability consists in preserving the purchasing power of the national currency by maintaining low, stable inflation rates in the medium term. The main indicators of banks' activity over the past five years have been analyzed. Since the beginning of the war in February 2022, it has been singled out that banks with domestic capital continue their work without changes, and two banks with foreign capital have ceased their activities (do not have a banking license). Aggregate information on the banking system of Ukraine as a whole is presented (total indicators for all Ukrainian commercial banks, including those that are state-owned). The dynamics of changes in total liabilities of Ukrainian commercial banks are analyzed. The analysis of the dynamics of the main indicators and tools of the money market, the main problems of its development, and ways of solving them are presented. The trends of its development and policy are identified and the proposals for solving the problems of the efficiency of the money market in Ukraine are substantiated.