THE ROLE OF THE COMMERCIAL BANKS' CAPITAL IN REALIZATION OF INVESTMENT POTENTIAL OF BANKING SYSTEM OF UKRAINE

Abstract

The regulatory capital of bank plays an important role not only in the core activities of the bank, but also contributes to the goals of the investment potential of the national economy. Amid financial crisis in the national economy, banking liquidity crisis and undermined confidence in the domestic financial institutions, the regulatory capital actually remains the ultimate long-term financial resources for domestic banks, which can be used for long-term investment in the national economy. Maintaining the appropriate level of capital adequacy and ensuring its positive trend, banks are able to monitor and control risks that arise during active and passive operations. We believe that introduction by the National Bank of Ukraine in 2014 of new regulatory capital threshold of 500 million hryvnia is an important step towards increasing the capitalization of the banking system of Ukraine and stabilization of its resource base.

Authors and Affiliations

Igor Lyutiy, Nataliia Shpygotska

Keywords

Related Articles

INNOVATIVE DEVELOPMENT OF INSURANCE ACTIVITY AS BASIS FOR INCREASING ITS EFFICIENCY

The essence and place of innovation as a factor of insurance business effectiveness growth are discussed. Peculiar attributes of innovations development resulting from insurance industry being a part of financial system...

STRENGTHENING THE COMPETITIVENESS OF NON-WASTE AGRICULTURAL PRODUCTION SUBJECTS

The widest implementation of non-waste technologies in agro-industrial production is the key to the functioning of a competitive agro-industrial complex. Therefore, an increase of the competitiveness of non-waste agricul...

THE FINANCIAL TOOLS FOR COVER POLITICAL RISKS IN PROJECT FINANCE

This article examines the risk-mitigation in public-private partnership. Today Ukraine is ranked as "CRT-5 country" and has high levels of economic and political risk. Political risk grows steadily because of financial a...

METHODOLOGICAL MAINTENANCE FOR ESTIMATION OF INTERNAL SYNERGY IN THE ENTERPRISES ACTIVITIES

The paper is dedicated to the procedure of estimation synergistic effects caused by the interaction of companies' strategic business units. The essence and structure of internal synergy are disclosed. In this way, there...

Perspectives of Investment Policy State as an Instrument Economic Restructuring

In the article conceptual approaches to the issue of investment policy in the restructuring of the economy of Ukraine. The analysis of structural changes value sectors of economic activity, trends in investment processes...

Download PDF file
  • EP ID EP400352
  • DOI 10.17721/1728-2667.2015/167-2/4
  • Views 61
  • Downloads 0

How To Cite

Igor Lyutiy, Nataliia Shpygotska (2015). THE ROLE OF THE COMMERCIAL BANKS' CAPITAL IN REALIZATION OF INVESTMENT POTENTIAL OF BANKING SYSTEM OF UKRAINE. Вісник Київського національного університету імені Тараса Шевченка. Економіка., 2(167), 24-29. https://europub.co.uk./articles/-A-400352