Reducing the Government’s Share in the Banking Sector of Ukraine as a Way to Consolidate Liberal Reforms in the Country’s Financial Sector
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Date
2020
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Український центр економічних і політичних досліджень імені Олександра Разумкова
Abstract
Ukraine’s banking sector reforms from 2014 to 2019 produced rather ambiguous consequences for the country. On the one hand, there were positive achievements in supporting a relatively long-term macro-financial stability; in 2018–2019, Ukraine managed to significantly reduce the number of banks that leave the market due to bankruptcy. On the other hand, Ukraine’s banking sector saw its diminishing role in financing the economy; the sector itself was overburdened with problem loans of previous years, while its consolidated efficiency indicators deteriorated due to increased share of state-owned banks in banking assets.
To restore the influence of banks on Ukraine’s economic growth and consolidate macro-financial stability, Ukraine has to reduce the state participation in the banking sector and liberalise banking regulation. We believe that the future is with the liberal model of banking business regulation, as it is based on reducing involvement of the state in the banking sector and on minimising prohibitions and ineffective regulatory practices and procedures.
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Shapran N. Reducing the Government’s Share in the Banking Sector of Ukraine as a Way to Consolidate Liberal Reforms in the Country’s Financial Sector / Natalia Shapran, Vitalii Shapran // Economic freedom to strengthen Ukraine’s social and economic development in the context of global transformations. – Київ : Заповіт, 2020. – С. 241–246.