The mission of banks with state participation in the capital in recovering the economy

Introduction. The scale of pandemic and war in Ukraine was not fully forecasted, but the crisis phenomena of these disasters have specific signs. One of the priorities of the tax and budget policy is resilience to threats, both foreseeable and unforeseeable. Problem Statement. The full-scale Russian invasion of Ukraine has led to significant changes in the resource base, economic potential and the common system of public finances, these can no longer function on pre-war principles. New realities, both internal and external, have emerged; it is impossible to ensure the successful development of the state without scientific understanding of them. Purpose. Justification of directions for the formation of internal pillars of stability and security of the economic development of Ukraine through transformations in Public Financial Management (PFM) during the period of martial law and post-war reconstruction. Methods. Based on trends in statistical indicators, a comparative analysis of national anti-crisis reforms in the field of public finances was conducted. The methodology of the system approach, methods of factual, situational analysis and synthesis were used. Results. Ukraine's acquisition of the status of a candidate for the EU membership, the modern realities of statehood and national economy recovery amid when the signs of fundamental turmoil in the global economic space, require significant changes in the PFM. It is necessary to rethink from scientific perspective and adjust the policy of countering threats of global and regional economic and social contradictions. International discussions on the plans for the post-war reconstruction of Ukraine prove the still uncertain, extremely multidimensional picture of the development of various components of the national socio-economic system. The amount of external financial support will depend on whether the measures to improve PFM during the period of martial law, as well as post-war reconstruction, will be interconnected, subordinated according to the space-time vector, etc. Conclusions. International financial institutions provide resources to conflict-prone and fragile states not only to correct imbalances, but also to build confidence during crisis situations when countries risk losing their ability to borrow on open markets. Taking into account the escalation of the geopolitical conflict associated with the full-scale Russian invasion of Ukraine, transformations in the fiscal sphere should be aimed at winning the war, preserving the territorial integrity of the state, supporting economic sovereignty and combating corruption, stimulating investment processes in the post-war recovery.

Public Financial Management in martial time and post-war reconstruction of Ukraine: scientific support of transformations

IEFYMENKO¹

2023

State banks of Ukraine as a factor for ensuring monetary circulation stability under martial law

LYUBICH¹,

DROBIAZKO²,

BORSHCHUK³

2023

Introduction. The results of the state-owned banks' activities (hereinafter BSC) in 2022 confirm their significant contribution to the stabilization of the national financial system during the period of full-scale Russian aggression against Ukraine. Problem Statement. Analysis of approaches to the strategic development of the BSC during the period of post-war economic recovery and their impact on the overall security of monetary circulation in the country. The given calculations make it possible to compare the financial results, role and place of each BSC with banks of foreign financial groups and banks with private capital. .Purpose. To assess the performance of banks with state participation in capital in 2022, compare the results obtained with the indicators of private sector banks, including with the participation of foreign capital, and formulate proposals for further legislative support for the optimization of business models of BSC in conditions of strengthening requirements for financial security. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The dynamics of changes in the resource base of banks at the expense of legal entities and individuals, as well as their credit and investment portfolios, are presented. The main macroeconomic strategies of monetary policy, which influenced the development of banks in 2022, are considered. The importance of restoring the Government's cooperation with international financial organizations in 2023 is emphasized. Conclusions. Changes in the development strategy of the BSC are proposed in order to increase the capitalization of this sector and attract foreign capital in the direct investment of the banking sector. In the conditions of martial law, in order to ensure the manageability of the BSC it is advisable to review the list of key strategic indicators of banks from the point of view of unification and convenience for measuring and comparing the effectiveness of their management's work, as well as monitoring investment attractiveness. The financial security of Ukraine in the system of the bank-centric financial sector must be based on the transparent management of the BSC sector, which must have a long-term development strategy along with a transparent mechanism for evaluating the quality of management's work.

Strategic imperatives of functioning of public sector banks in the post-war stage

LYUBICH¹,

OLIINYK²

2023

Introduction. The issue of the role of state-owned banks in modern conditions is attracting more and more attention. In Ukraine, the share of the state-owned banks segment makes up more than half of the banking services market. Accordingly, the synthesis of existing experience and the development of approaches to the use of the potential of state banks in the interests of supporting the development of the economy in crisis conditions is an urgent scientific task for Ukraine. Problem Statement. The role and place of state banks in ensuring economic development in conditions of exogenous challenges. Purpose. To determine the peculiarities of the work of banks with state participation in the capital in Ukraine and to provide recommendations for increasing the efficiency of using their potential in war conditions and at the stage of post-war economic recovery. Methods. The work uses the methods of theoretical generalization, systematic, comparative and economic analysis, systematization, logical generalization, analytical presentation, and synthesis. Results. In accordance with foreign experience, it has been confirmed that in the conditions of wartime challenges, state banks play an important stabilizing role in ensuring the stability of the financial market. During the war, Ukrainian state banks were able not only to ensure uninterrupted provision of financial services and payment and settlement operations, but also to support the implementation of state credit programs. The segment of state banks plays an important role in the financial support of the state's fiscal policy. Such a role of state-owned banks in Ukraine will most likely remain at the stage of post-war economic recovery. Conclusions. In accordance with the acquired advantages and experience of pre-war activities, the forces of state banking institutions should be concentrated in the key areas of supporting the functioning of the economy in wartime conditions within the framework of defined state policy tasks. At the same time, the strategy of their activities needs to be adjusted with increased specialization in accordance with the strategic directions of economic recovery.