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In the age of the global Internet, there were changes in the life of the human community, its needs, and requirements for the provision of payment services, that, in turn, affected the development of the payment sphere. Taking into account the transformations in the field of payment systems that occur as a result of the continuous development of the digital economy and its globalization, legislative and regulatory changes in the domestic and international legislative field, research and proposals regarding the modern understanding of the concept of "payment system" and its varieties remain important. As a result of the conducted research on the current condition of functioning of payment systems, we have proposed the author's vision of the concept of "payment system" and their varieties, which takes into account the influence of digital technology changes and globalization processes on their activity, while highlighting individual types of payment systems depending on their general economic significance, unitary position, as well as importance, significance, and functionality. In addition, the selected types of payment systems may have several variants of their interpretation, since today this concept has significantly expanded its lexical meaning. Based on the results of the assessment of the current condition of functioning of payment systems in Ukraine, the article identifies the main stages of the formation of the country's payment system, identifies its features, and establishes the factors that influence their development (political and economic, globalization, informatization of society, digitalization of the economy, development of financial technologies, the legislative basis for payment systems, use of oversite, regulator's policy, access to the Internet, level of material support of the population, competition between payment service providers, popularization of cashless payments). The study of the main development trends and the identification of the main shortcomings in the article showed the need to reform the payment system, and interbank settlements, and determine promising directions for the development of payment systems in order to create an effective, reliable and safe payment in the system of Ukraine.

Banks of Ukraine in the conditions of martial law demonstrated rather contradictory, but mostly positive results. Despite significant economic and infrastructural losses, the banking system has preserved its integrity and reliably fulfils existing obligations, conducts settlements, and continues to attract customer deposits, but has switched to a conservative (zero) growth of loan portfolios, except for programs supported by the state, has slowed down the issuance of new loans due to high credit risks, and also postponed the implementation of plans to reduce the share of the public sector. The article presents a generalized description of the main components of the systemic risk of instability of the banking system based on a structural and functional analysis of its elements according to the official reports of the NBU for 2022 and previous years, as well as the prospects for its further development. It was determined that by the end of 2022, the banking system of Ukraine maintains an acceptable level of operational stability, excessive liquidity and tries to minimize the factors of credit, operational and currency risks. In the second half of 2022, credit risks began to materialize, which was manifested in the growth of defaults. Based on this, it was concluded that one of the important directions of the regulatory policy of the NBU should be the development of incentives for the quantitative and qualitative improvement of the financial base of the banking system. In particular, it is proposed to stimulate the growth of the funding, dominantly from the domestic market, and therefore to the levelling of currency and credit risk, as well as to the improvement of the effectiveness of the monetary policy. To ensure lending activity, it is advisable to develop lending support for ESG goals for diversification of energy production, housing and infrastructure construction.

The article analyzes changes in the business models of Ukrainian banks using the author's method of structural and functional groups of banks (SFGB). The method’s basis is the processing, systematization, and visualization of the system’s values of banks’ financial indicators using Kohonen’s self-organizing map (SOM). Depending on the level distribution of a large number of indicators that characterize the structure of assets, liabilities, income, expenses, and other qualitative indicators that describe the business models of each bank on successive reporting dates, homogeneous groups of banks are formed. The purpose of this study is to compare the key features of the banking system as of January 1 and September 1, 2022, and the corresponding changes in business models. Over the eight months of 2022, the number of banks with corporate lending increased slightly, but the resource base of these banks gradually changed. The number of banks with retail financing decreased at the expense of banks with current resources. During an increase in the discount rate and in the price of refinancing loans, banks’ business model that attracts resources on the interbank market and places them in securities has shrunk. At the same time, the number of banks with an increased level of securities in assets and corporate financing increased. The quality of the portfolio indicates the increased credit risks of the respective large state banks. The drawback of the proposed method is the dependence of conclusions on official banks 'statements that do not always reflect nuisances of financial position. Within small banks, we can sometimes observe that current changes in clients' account balances affect the position in SFGB. The SFGB method can be applied to analyze trends and estimate the probability of subsequent structural changes. For each bank, one can observe the trajectory change on the map and investigate the reasons for the change in business strategy.

A method of identifying banks’ business models and studying the features of their risk profile, considering the system of indicators featuring the structure of assets, liabilities, income, expenses, and other qualitative indicators based on monthly statistical reporting. Kohonen's self-organizing maps (SOM) are used to process large data sets, revealing objects’ hidden features by forming homogeneous groups according to similar values of a large system of indicators. The choice of the system of indicators that play the most significant role in describing the business models of modern banks is substantiated. The proposed method makes it possible to group banks with homogeneous characteristics into so-called structural-functional groups and studies the change in the characteristics of groups of banks over time to compare their behavior during periods of active development of the system and during a crisis. That approach is useful for studying the banking system at the macro level, as it provides a quantitative measure of its financial stability. The more banks are in groups with negative values of parameters, increased risks, and unprofitable performance, the worse the general state of the system. The method also allows studying the features of each structural and functional group and the business models’ features at the meso-level. The number and composition of banks inherent in any group change dynamically, which characterizes the features of the relevant business model in a particular period. The averages of each group reflect the objective changes in the banking system structure. In addition, the SOM trajectory can be built for each individual bank determining the development of its strategy, features of a particular business model, and risk profile. At the micro-level, it allows comparing the features of individual banks within the SFGB and models ways to improve efficiency and financial stability by forecast values for SOM. An extensive system of indicators used to form structural and functional groups of banks allows to quickly respond to changes in the banking system, identify areas of increased risk and explore the adequacy and effectiveness of banks’ business models.

The paper deals with the analysis of the banking system of Ukraine. It is shown that for Ukraine the frequency and depth of crisis phenomena in the banking sector are exacerbated by the raw material orientation of the economy, underdeveloped domestic market and the circulation of foreign currency (dollarization of the economy). It should be noted that in the pre-crisis during 2006-2007, excessive mortgage lending created a "bubble" in the real estate market, which, comparing its devastating effects, corresponded to this phenomenon in the real estate market in the United States. Although the crisis of 2008-2009 demonstrated the vulnerability of the Ukrainian banking system to numerous economic and political upheavals, no significant changes in banking supervision took place to minimize systemic risks. Restoration of the banking system of Ukraine in 2015-2016 is generally in line with post-crisis trends to streamline the banking system and increase its efficiency in the world. At the same time, the weakness of the institutional environment makes it impossible to use both administrative tools and state development banks to increase productive lending in Ukraine. On the other hand, commercial banks will use refinancing loans instead of private-sector savings to lend. In this case, the probability of the need for financial support from banks increases, which will lead to a significant increase in public debt. Moreover, a system of vector autoregression models has been developed to research the impact of crisis periods on the performance of commercial banks in Ukraine. The simulation results (mainly the analysis of impulse response functions) allow concluding that interbank lending in post-crisis conditions recovers relatively rapidly (with a lag of two years). Lending to non-financial corporations and non-residents showed a decline and recovery only within four years after the crisis. Lending to the general government sector is growing every year, but at the same time loans to other resident sectors are declining. In addition, during the year after the crisis, the volume of deposits in the banking system is demonstrating a decrease. Other variables do not show any response to the crisis.

Abstract. The cleansing of the Ukrainian banking system, performed in 2014—2016, showed the purpose of the National Bank to break the old models of banking and ensure sustainable development of the banking system and Ukraine as a whole. At the same time, the cleansing of the banking system was revolutionary, affecting not only the owners but also the broad sectors of society and the business entities, who suffered losses. Due to high relevance and social impact, discussions about the root causes, methods, and consequences arose. This article aims to establish the compliance of cleansing the banking system of Ukraine with the goals of sustainable development. In this study, we considered the provisions of economic theory and the theory of banking systems, taking into account the spirit, ideals and principles of sustainable development. This study has the structure as follows. Firstly, we performed a theoretical analysis of the evolutionary and revolutionary types of banking reforms. Then we conducted a historical-economic analysis of the events that preceded the beginning of the cleansing of the banking system. In the central part, we analyzed the generalized causes and specific problems that led to the withdrawal of banks from the market in the primary wave of cleansing. Finally, we singled out three groups of NBU’s comments on the liquidation of specific banks. We established their close connection with the implementation of task 8.3 of the eighth Sustainable Development Goal. We pointed out some discrepancies between the reasons for the liquidation of individual banks and the comments of the NBU. Therefore, we have suggested combining comments into groups which more clearly reflect liquidation reason. Such groups include non-compliance with stakeholders, lack of bank recovery strategy and resources, and misbehaviour by shareholders, insiders, and related parties. Finally, we reaffirmed the revolutionary nature of the reform. We proved that, despite the losses, its absence, in the longrun, could have made it impossible to meet Task 8.3 of the Eighth Sustainable Development Goal. Promising are as of further research are comparing the procedure and results of cleansing the banking system in Ukraine and foreign countries. Keywords: banking system, cleansing, liquidation, banking reform, sustainable development. JEL Classification Q01, G21 Formulas: 0; fig.: 0, tabl.: 0, bibl.: 28.

Abstract. In the study, it was found that today bank lending to agro-industrial enterprises in the short term does not have economically justified prerequisites for its development and can not perform a stimulating function. Low or negative profitability and accumulated losses of previous periods do not cover the high price of credit resources. As a result, the attraction of credit funds in the economic activities of enterprises overtime only worsen the already difficult financial situation. On the other hand, the existing lending practice has already led to the fact that about 55% of loans are not repaid on time. That is why the banking system needs to apply stricter approaches to risk management when choosing counter parties. Otherwise, it will also threaten its stability. The scientific novelty of this work is the economic justification of the feasibility of lending to agro-industrial enterprises of Ukraine, based on banking statistics and modern approaches to financial management and, unlike the existing situation, taking into account the interests of both businesses and the banking sector. Keywords: agro-industrial enterprises, credit resources, banking system, financial management, borrowed capital. JEL Classіfіcatіon G21, G28, G29, O10 Formulas: 2; fig.: 0; tabl.: 1; bibl.: 15.

Abstract. The heart of any market economy is its circulatory system. The complex of credit and banking institutions that serve their viability of structures (infrastructural elements), is a full-fledged banking system of the country. Modern dynamic processes of globalization of financial markets due to the acceleration of the free movement of capital, in addition to a positive impact on the development of national financial systems, create conditions for the spread of crisis trends, including contributing to the manifestation of the chain of «infection effect» of banking systems in the international financial space. A system of economic and legal support for the financial stability of the banking system has been developed. The feasibility of creating and achieving the effectiveness of which in modern conditions is due to the need to reboot the domestic banking system to solve existing internal financial problems and transform it in accordance with the European-oriented vector of development of the country’s economy. The existing system provides for the financial stability of the banking system at two levels: at the macro level — the banking system as an object with systemic properties; micro-level — banks as structural elements of the banking system. The study of the features of the formation of a system of economic and legal support for the financial stability of the banking system. The main task was to optimize the main elements of the system of economic and legal support for the financial stability of the banking system. The main goal of the study is to form a system of economic and legal support for the financial stability of the banking system. A methodology for structuring system elements was applied. Building an information model allows you to structure the elements of the system of economic and legal support for the financial stability of the banking system, see their relationship, highlight the main and secondary ones. Keywords: economic and legal support, stability, financial stability, banking system, banks. JEL Classification G20, G21, E58 Formulas: 3; fig.: 1; tabl.: 2; bibl.: 15.

The topic of the present paper is a search for the functional methods of bank management in the period of political and social transformation of society. The objective of the research is substantiation of the necessity for the government to have its own banks in order to exercise its functions and provide guarantees of stability in the state under the unfavorable conditions of a conflict of interests when the state is both the ‘regulator of the financial services market’ and the ‘bank owner’. The analysis conducted in the paper on the benefits and losses due to the state ownership of banks has shown: vulnerability of the Ukrainian banks to political pressure; lobbying for the interests of systemic commercial banks and their obtaining of preferences or special terms; excessive budget expenditures for capitalization of failing systemic banks. The experience of developed economies has been researched with an analysis of shortcomings, mistakes and prospects of state-owned bank management in different countries; banking market regulation methods and tools have been systematized. The paper focuses on the measure of nationalization, which was applied by many advanced countries; the impact of nationalizing important systemic banks is grounded, with an emphasis on the decisive role of nationalization in the transition period. It has been determined that many of the factors leading to bank nationalization are closely related to the problems of government regulation of the banking sector. A conclusion has been made that in many countries the mechanisms for corporate regulation of state- or community-owned property do not even exist or are underdeveloped, and therefore, the governments of these countries, having sufficient information and appropriately trained specialists, should be responsible for all the socio-economic processes in the state. These considerations should be translated into elaboration of a mechanism for corporate governance of strategic public property objects. A corporate governance reform involves creation of competent and independent supervisory boards that would minimize a possible impact of politicians and public officials on the operating activities of banks.

The expanding of banking services spectrum allows the redistributing of financial risks, the reduce of their negative impact on the efficiency of the commercial bank and creating of new revenue channels. According to this process, the issues of increasing the volume of provision and growth of commission receipts proportion in the general structure of revenues of banking institutions are actualized. In addition, commission receipts more stable than interest, but their not associated with the risk of losing the value of invested assets (except for the guarantee operations). That is why the article is devoted to determination of the effect of impact the volume of commission of banks on the total amount of their income. The research is based on the study of the relationship between the indicators in deal with cubic one-factor regression model. It would be the basic for a diversification of the portfolio of banking services to protect the bank from crises at the financial market and for adoption of effective management decisions. As a result, the significant influence of the growth of commission receipts on the general level of income of commercial banks. This is evidenced by the computed the correlation coefficient (its value is 0.96 and shows the close relationship between the volume of revenues and volumes of their commission receipts), coefficient of determìnacìï, which is 0.91 (that is change the bank`s income on 91.0% depends on the change in the volume of commission receipts of commercial banks) and strong elasticity ECI(I > 1 (the increase of commission receipts of banks in Ukraine has a significant impact on the growth of their total). According that it is possible to conclude that the role of commissions in the general process of generating revenues of the bank is increased.

The article investigates modern approaches to define the concept of investment climate. The latter is considered to remain unfavorable in Ukraine, although there are some positive changes in this direction. The factors which determine the state of investment climate are identified and structured in this paper. They include social, institutional, economic, integration and man-made ones. The key instruments which might influence the investment climate of Ukraine are determined. It is underlined that their effective use will improve the state of investment climate in the country nowadays. The change of investment position of Ukraine in the world’s top rankings is underlined. According to the most authoritative Ease of Doing Business ranking, the rate of Ukraine is 71st at the beginning of 2019. Ukraine has considerably improved its rate recently. The most significant changes have been observed in the field of customs policy whereas the most problematic one is the bankruptcy procedures. The research of the current state of investment activity in Ukraine has revealed an increase in the inflow of foreign direct investments, although their size compared to the needs of the real sector of the economy is still insignificant. The factors constraining the investment activity in Ukraine are formulated. The usage of the relevant crediting instruments influencing the investment climate of Ukraine in order to improve it and to increase the activity of domestic and foreign investors is suggested. It is proved that tax, budgetary and crediting instruments of currency regulation are currently the most essential. Positive influence of currency liberalization on the investment climate of Ukraine is revealed. The legalization of crypto currency operations is recommended. It is also necessary to implement modern electronic accounting methods (blockchain technology) into financial practice and accelerate the implementation of Basel III international standards. In Ukraine the legalization of cryptocurrencies will lead to a GDP growth, development of the new ways of running banking business and investment activity encouragement.

The article proposes methodological aspects of the banking system efficiency evaluating in the direction of the influence on capital concentration factor under modern transformation conditions. Capital efficiency was investigated as the dependence of Ukrainian banks' total income on the volume of its equity and liabilities on the basis of Cobb-Douglas nonlinear regression models for for data according Ukrainian banks’ records for 8 years, which were classified into four groups by the size of regulatory capital and assets. The bank`s inefficiency measure is calculated on the basis of real data and standart values for each factors as Euclidean space distance to the efficiency level. The forecasted characteristics of banks' activity efficiency in groups using exponential smoothing methods and piecewise models are determined. According to the results of the prognosis of the estimates of capital efficiency according to the model of piecewise linear regression, a general drop in the capital efficiency of the banking system as a whole in groups is envisioned. To evaluate the overall efficiency of banks, the matrix "productivity — efficiency" was created. The obtained estimates confirm the uneven distribution of banks by quadrants, the absolute majority of which are concentrated in a quadrant with a critical level of efficiency. The implementation of the proposed toolkit on the basis of models of evaluation of the productivity and efficiency of the banks' allows us to identify banks that require a radical change in strategy, revision of the process of using resources with the aim of reduction of the dependence of banks' profitability on negative external influences.

In particular, the process of adapting commercial banks to rapidly changing macro- and micro-conditions is of particular importance in the context of the economic and banking sector crisis phenomena, which in turn affects the quality and, accordingly, competitiveness of banking services.Increasing the competitiveness of banking services of Ukrainian banks and ensuring the competitiveness of the domestic banking system is a prerequisite for ensuring sustainable economic growth. In view of this, the authors updated the issues of assessing the competitiveness of banking services offered in the market, using methods of economic and mathematical modeling. In assessing the competitiveness of banking services, research methods such as analysis and synthesis, the method of comparison, economic-statistical, mathematical, grouping and modeling, table and graphic are used. The work also used the modification of the Saati method as a hierarchy analysis method from the point of view of replacing the Saati estimates in the matrix of pairwise comparisons based on the numerical relations of the corresponding characteristics of the model's factors.Thus, the competitiveness of the banking service «Credit»ofJSC Oschadbank, PJSC CB «Privatbank», JSC «Raiffeisen Bank Aval», JSC «Kredobank», JSC «Alfabank»and PJSC CB «Taskombank»on the basis of its economic and consumer properties. The approach proposed by the authors to assess the competitiveness of banking and banking services, allows positioning services of a competitive bank in the financial market. For each commercial bank it is possible to determine the position and establish the competitive advantages of banking services in comparison with similar services of other commercial banks. Using the proposed model provides an opportunity to assess the competitiveness of the banking institution in terms of the competitiveness of banking services and should become a complete and informative information tool for managing the competitive advantages of domestic commercial banks.

The article explores that the important scientific and practical task of the modern stage of development of world civilization is the globalization of all spheres of public life — cultural, information, and economic. One of the components of the globalization of the economy and one of the highest stages of globalization is the globalization of the world banking system. Banking sector is one of the key factors ensuring stable economic development of the country. Transparency, reliability, resistance to fіnansovo-economic shocks, a temple urіven depositor confidence — a characteristic feature of the banking systems of countries with developed economy. It is determined that banks should be considered as an important part of business, business world. They accumulate cash, provide loans, make cash settlements, issue currency trademarks, serve securities markets, and provide various economic services. Banking in the capital of the Central Bank of the European Union originated and developed on the basis of capital that brought interest. Even at the formation of the primitive communal system used usurious capital. Rich representatives of the top government were lending money. The development of usurious capital and initiated a banking business. In antiquity, there were some institutions that performed the functions of banks. In the historical literature, there are indications that the banks functioned in Poland, the Czech Republic. They performed a variety of operations — from commission operations for the purchase, sale and payment at the expense of customers to the issuance of loans and acted as guarantors and trustees in the implementation of various acts and transactions. Thus, the origins of modern banking can be seen in the activities of banks in the old days. It is noted that by the end of the XIX — early XX centuries. In the years of its existence, the multi-faceted credit system was formed. Public and private banks served, mainly, large borrowers; the credit needs of the small clients were managed by an extensive system of small loan applicants, whose resource base was formed, including at the expense of the State Bank. This model of functioning of the credit system is reflected and at the present stage of development, as the most suitable for the needs of all categories of borrowers, adequate to the transitional type of economy and which most contributes to the economic development of countries.

One of the key factors to ensure the proper development of regions is the functioning of banking institutions in them. It is bank as an independent financial institution, accumulating temporarily free funds of legal entities and the population, by active operations creates serious infusion into the economy of the region in the form of investment, financing some separate areas of the business entities economy. The regional banking system affects the whole region development, thereby creating the conditions for active investment, ensuring adequate financing of companies, and thus increasing production and employment and, consequently, improving people's lives level. With the expansion of the European Union the western border of Ukraine acquired a new meaning. Therefore, was analyzed the state of the banking sector in western border regions of Ukraine and were examined existing regional disparities in the development of the regional banking system. The results of empirical analysis of the process are given. The recommendations on the development of the credit market of Western Ukrainian region are provided.

The mortgage and housing markets inEuropeplay a crucial role in the wider economy and in determining people’s welfare and quality of life since the housing markets are affected by financial abilities of consumers and banking system products. The mortgage and housing markets both should constitute an efficient system that lead to improving the social living conditions and the household standards quality level. It is reached owing to banking system policy within responsible mortgage offer that allows its consumers for affordable access to home ownership. Activities within the mortgage and housing market support investments creating process in the construction industry and play a key role in the financial European sector, what can be determined as one of the main drivers of the European economy. Recent fluctuations in the currencies ratings caused a sharp debate about mortgages and housing markets. The paper refers the current situation on the mortgage and housing markets in Europe based particularly on the characteristics of the situation inPolandand the banking system reaction.

The investigation presents scientific and methodological approach of evaluation of efficiency of the banking system through a generalized Harrington function (desirable function) that allows to determine the current state of the banking system and to predict the perspectives of its development. In the simulation of assessment of the banking system were used data from 49 banks operating in Ukraine for 2003–2016 and 15 financial indicators, which provide formation of input variables of the model. The method of data processing is implemented in the package Viscovery SOMine. The approach is based on the analysis of the dynamics of patterns of banks and building self–organizing Kohonen maps which enables to determine the trajectory of activity of individual bank. This approach enables forecasting of individual bank crisis and the potential crisis of banking system of a country. Conducted trend forecast of the Harington function suggests potential of improving of Ukrainian banking system over the next 3 years.

The article deals with the necessity of effective banking system functioning for successful economic development. The Ukrainian banking sector under the conditions of unstable financial, economic and political situation is analyzed. The basic problems, which the banks faced by in the course of their business, such as a low credit and investment ratings, total distrust of financial institutions, rapid devaluation of the hryvnia, are grounded. It is represented the dynamics of the changes in the number of banking institutions, dynamics of indices of their activities, changes in the discount rate for lending of the real economy sector by commercial banks. It is found that reducing the number of banks would mean increasing their reliability. The reasons of commercial banks liquidation are determined. The necessity of nationalization of JSC "Privatbank" is grounded. On the base of the analysis the recommendations of stabilization the banking system, the main of which are the start of lending and effective risk management are offered.

The aim of the study is the analysis of the development of the banking system of Ukraine in the current economic and political conditions and identifying the opportunities of using the cognitive technologies for predicting its development. Methodical research tools include the cognitive modeling, which allows establishing a qualitative relationship between quantitative indicators. Testing of methodological tools was conducted on the example of the Ukrainian banks. It was analyzed the current financial position of the banking system of Ukraine with the help of the indicators of profitability, equity, liquidity, business activity. As a result the substantial worsening of indicators of basic performance of Ukrainian banks was discovered. It was investigated the possibilities of using cognitive models in bank's management for prediction the development of the banking system of Ukraine. It was proposed to use integrated assessment of financial stability of the Ukrainian banking system as a factor that reflects the level of its development. By using cognitive modeling intercommunication of indexes that characterize financial sustainability of Ukrainian banking system was investigated. It was founded that among the indicators of financial sustainability of Ukrainian banking system the most important is an index of correlation of clean open position in foreign currency to the capital. It was proposed to use the results of cognitive analysis in constructing scenarios of development of the banking system of Ukraine. The aim of the study is the analysis of the development of the banking system of Ukraine in the current economic and political conditions and identifying the opportunities of using the cognitive technologies for predicting its development. Methodical research tools include the cognitive modeling, which allows establishing a qualitative relationship between quantitative indicators. Testing of methodological tools was conducted on the example of the Ukrainian banks. It was analyzed the current financial position of the banking system of Ukraine with the help of the indicators of profitability, equity, liquidity, business activity. As a result the substantial worsening of indicators of basic performance of Ukrainian banks was discovered. It was investigated the possibilities of using cognitive models in bank's management for prediction the development of the banking system of Ukraine. It was proposed to use integrated assessment of financial stability of the Ukrainian banking system as a factor that reflects the level of its development. By using cognitive modeling intercommunication of indexes that characterize financial sustainability of Ukrainian banking system was investigated. It was founded that among the indicators of financial sustainability of Ukrainian banking system the most important is an index of correlation of clean open position in foreign currency to the capital. It was proposed to use the results of cognitive analysis in constructing scenarios of development of the banking system of Ukraine.

В статье изложены результаты исследования влияния банковского кредитования на рост валового внутреннего продукта страны (на примере Республики Беларусь). Перспективным направлением развития кредитной системы Беларуси отмечается поддержка системы микрофинансирования, особенно кредитной кооперации.