Lisovska V., Naista A. Approaches to the analyzing the performance of Ukranian banks in the context of international lending

Abstract

The article is devoted to the banking sector of Ukraine which is characterized by a large number of undercapitalized banks. Highlighted some features of credit expansion in Ukraine. The article provides list of the main channels which are quite actively used by commercial banks of Ukraine for attracting resources in international financial markets. To determine the most attractive terms of raising funds, offered by international financial institutions, analysis that is made demonstrate the limited access to these resources and takes into account complex procedures of raising funds, importance of state guarantees and high level of requirements under strict terms of procurement. This article examines the banks’ performance in terms of effectiveness of the implementation of international credit projects. It is also shown that the analysis of absolute indicators does not include many factors (such as exchange rates, inflation, institutional transformation, political situation), that is why article deals with dimensionless terms of indicators and banks performance relative to GDP of Ukraine. This makes it possible to observe a clear economic growth by 2009 that is explained with the world economic crisis of 2008 and the post-crisis inertia in 2009. In article shown that cooperation with international financial institutions has helped Ukraine to get out of a deep economic crisis, to solve financial problems and even to achieve economic growth. The article also presents the tendency of increasing the profitability indicators of Ukrainian banks, the usefulness of international loans and the relations between the Government of Ukraine and international financial organizations. Also, these studies highlight Ukrainian cooperation with the IMF and the World Bank because international loans and foreign investments depend on relations between Government of Ukraine and the International Monetary Fund