BANKING INSTITUTIONS ON THE FINANCIAL MARKET OF UKRAINE

Abstract

The article studies the practical features of banking activities on the financial market of Ukraine. According to analytical data of Ukrainian scientists, who investigated the peculiarities of functioning of the financial market, the banking sector significantly dominated by non-bank and the financial market of Ukraine is bankcentre.

The structural dynamic analysis of key performance indicators and characteristic features of the development and the overall efficiency  of these institutions are analyzed in it. As a result, it was found that in Ukraine the number of these institutions have reduced for 2013-2015 period and a significant deterioration in the main indicators of activities of banks in 2015. In addition, a significant decrease in the proportion of bank assets to GDP confirms the general worsening of the activities of such financial institutions. We could also observe a decrease in liabilities of banks in 2015. This tendency should be assessed negatively, because the development of the financial market and the banking sector requires the growth of the market volume of deposits to attract funds and their further redistribution in credit investments or investments in securities. The share of loan portfolio in total assets has a tendency to increase in 2014 and to fall in 2015. This dynamics is estimated as negative and indicates a decrease in their total loan portfolio. That is why, banking institutions attract less attention on loans. Extremely negatively, you should estimate the trend of deterioration of loan portfolio quality of the banking institutions, because during the analyzed period increased the share of overdue accounts payable. In addition, decreased and the indicators of banking activities. This situation is due to a reduction in the efficiency of their operations.

The article analyzes the mechanism of redistribution of funds of banks in the context of the formation of a credit portfolio and portfolio of securities of the banks too. The positive feature of banking activities is the growing interest of organizations to invest in securities, however, the share of securities in total assets is quite low.