BANKING SYSTEM OF UKRAINE: ESTABLISHMENT AND DEVELOPMENT

Abstract

Abstract. The Ukrainian economy, and with it the banking system, developed under the influence of political events in different historical periods. There is no single vision of the key periods of the development of the banking system of Ukraine, different authors define the important periods in their opinion, while the unification of the periods of development of the monetary and credit system is extremely important for forecasting macroeconomic indicators in the modern post-war period, taking into account the historical experience in stabilizing the economy in periods of economic crises that Ukraine was experiencing. Banks were and remain an important part of the economy of any country, as they play the role of a financial intermediary between business entities, influence every member of society and, with the effective economic policy of the country's government, balance the demand and supply of money, thereby providing a positive direction for the development of the country's macroeconomics. The purpose of writing this article was to study the development of monetary and credit relations of Ukraine and clarify the time intervals in the stages of formation of the banking system of Ukraine and its development. Any changes in the functioning of the banking system affect all business entities and may lead to a socio-economic crisis. The relationship between the macroeconomic environment and the banking system is two-way, and as the historical experience of Ukraine shows, it can be both positive and negative. Since its creation in 1991, the banking system in Ukraine has undergone a colossal transformation: modern Ukrainian banks are high-tech, provide high-quality customer service, the highlight of which is remote customer service for all banking products. Historically, the economy and banking system of Ukraine mainly developed under the influence of negative economic and political events and showed their adaptability to changes in the macroeconomic environment. It was concluded that in the current conditions of martial law, in order to minimize the risks of a liquidity crisis in the banking system and fully re-establish the intermediary function of credit, the National Bank of Ukraine should undertake targeted long-term refinancing of banking institutions under specific programs of economic development.