This paper focuses on highlighting of essential moments and a behavior of banking system of Ukraine during the financial crisis of 2014-2016. We analyze the development of key banking indicators and bankruptcies of banks and run the segmentation of the banking system on various groups. We show that insolvency and bankruptcy of many banks with Ukrainian capital could be often attributed to illegal behavior of owners (shareholders) and top management of these banks regarding capital withdrawal and forced bankruptcy. Moreover, we run a critical analysis of the National Bank of Ukraine (Central Bank) and banking regulation during financial crisis. We show that the so-called “curators” or supervisors appointed by the National Bank of Ukraine contributed to the capital withdrawal and money embezzlement, and finally to the partial collapse of banking regulation. In addition, we analyze the operations of Deposit Guarantee Fund (DGF) on deposits reimbursements to depositors along with provisional administration and liquidation of insolvent banks. It turns out that DGF has not found investors for insolvent banks in most cases and the sale of assets of bankrupted banks has been non-transparent and inefficient.
|Number of pages
|Czech Journal of Social Sciences, Business and Economics
|Published - Sept 2016