THREATS AND PROSPECTS OF THE CONCENTRATION OF UKRAINE'S BANKING SYSTEM

Abstract

The share of the largest banks is growing in Ukraine. Since 2016, Ukraine's banking system has been similar in terms of concentration to Belgium, Denmark and Spain. An ambiguous influence on the level of competition and on the efficiency of the largest banks is exerted by a significant share of the state in the banking system.

It is established that the size of the profitability of the banking system of Ukraine largely depends on the level of concentration and has a sufficient degree of closeness. At the same time, net income in the banking system of Ukraine strongly depends on the level of concentration of net assets in banking.

It is proposed that state regulatory measures for the concentration of bank capital should be aimed at creating a competitive environment. It is expedient for Ukraine to take into account and implement the experience of the EU and other developed countries, which takes into account the existence of various forms of competition. Competition policy options take into account the need to address mergers and acquisitions of banks.