BANKING INVESTMENT PECULIARITIES IN UKRAINE

Abstract

In the economy of Ukraine modern conditions, the problem of intensification of investment activity is especially acute. Banks as participants in the investment process must ensure effective management of significant financial resources both in their own interests and in the interests of other subjects of the national economy. Turning points in the banking sector cause negative consequences both in the financial sector and in the economic system as a whole, and in some cases cause crises of various kinds and duration in various spheres of a country’s life. Current indicators consideration of the banking system of Ukraine is necessary to identify existing trends that may lead to the sustainable development of Ukraine. Indicators of bank investment in recent years show an insufficient level of development of this area in the presence of great potential to expand it. This fact is linked to a number of reasons objective and subjective, which relate to the general level of national economic stability in its various spheres, the lack of banks interest in financing investment projects due to significant risks. The article is devoted to the modern peculiarities of the banking system of Ukraine's development. Statistical data characterizing the banking investment activity in Ukraine are analyzed. It is proved that raising the country's economy to a new stage of development depends on the investment activities of banks. It is determined that the investment activity of banks needs to be modernized with the contradictory criteria harmonization: profit maximization and risk minimization. The main part of the bank’s credit-investment portfolio in Ukraine is loans. At the same time, during the analyzed period there were quite significant changes in the share of investments in securities. A gradual increase in the volume of the loan and investment portfolio by domestic banks is observed during the analyzed period. The largest share in the bank loan and investment portfolio during the analyzed period is occupied by loans to businesses, investments in securities, and long-term investments. It is possible to draw the following conclusion on the basis of the conducted research: an increase in investment activity by banks during the 2016-2020 years indicates the improvement of the conditions for effective credit and investment activities.