Kravchenko T. D., Tigranyan V. S. Necessity and directions of providing financial rehabilitation of the commercial banks in Ukraine.

Abstract

The role of the banking system in the current conditions, as an unique financial intermediary lies in the fact that almost all money concentrates in it and with the help of it the distribution and redistribution are being done of resources in the industry, technological and functional aspects. Formation of commercial banks in Ukraine coincided with an increase in a crisis phenomena in the economy that are causing them all to the weak financial condition.  During 2014 ─ 2016 Ukrainian economy and the banking sector had the most profound crisis since its independence. This was caused by a military conflict and annexation of Ukrainian territoryby Russia and ambitious structural imbalances, accumulated over the last decade.  In this publication in order to identify specific areas of financial rehabilitation of banks, the analysis of capital and deposit base of Ukrainian banks for  period from 2013 through 2016 was conducted; it was identified the reasons and tendency of negative processes as to capitalization of local banks and reduction of retail deposits. It was lighted up the basic ways of increasing the concentration of banking capital during the restructuring of banks and identified sources of increasingits funds  through reinvestment of bank profits, additional investment in statut funds of the bank orcapital stock issues or increase in additional equity capital and through the searching for the new domestic and foreign private investor-owners.