Retrospective genesis and strategic directions of the development of Ukraine’s banking system

Abstract

Abstract. The subject of this study is the Ukrainian banking system, which is viewed as a dynamic structure with deep historical roots. The paper analyzes the evolution of banking from the ancient times of the Greek colonies and the legal foundations of Yaroslav the Wise’s «Ruska Pravda» to its current state of operation amid unprecedented global and domestic challenges. The key characteristics of the system are its adaptability to political regimes and its capacity for transformation under the influence of economic cycles.

Problem statement. The main challenge lies in the need to systematize the stages of the banking system’s development in order to identify patterns in its functioning. Particular attention is paid to the resilience of the banking system in times of crisis: the COVID-19 pandemic and full-scale military aggression.

Unresolved aspects of the problem. Despite numerous studies on periodization, there remains a divergence among scholars regarding the approaches to determining the starting points for the development of the banking system. The issue of balancing fiscal pressure on bank profits with the need for their further modernization also requires further study.

Purpose of the article. The purpose of this study is to conduct a retrospective analysis of the development of Ukraine’s banking system, identify the key stages of its evolution since independence, and assess current trends and prospects in the context of ensuring the country’s financial stability.

Presentation of the main material. This article proposes a periodization of the development of Ukraine’s modern banking system since 1991 and examines its transformation from the establishment of a two-tier system and the overcoming of the hyperinflation of the 1990s to the «cleanup» reforms of the banking system in 2014–2018. The dynamics of key banking performance indicators for 2021–2025 are analyzed, demonstrating growth in asset volumes and profitability. The article highlights the feasibility of implementing innovative solutions, such as «open banking» and the Power Banking network, in banking operations.

Conclusions. It has been demonstrated that the domestic banking system exhibits high institutional resilience. The practical significance of these findings lies in substantiating the need for a prudent fiscal policy and the further digitalization of banking services. Effective regulation by the NBU and adaptation to extreme conditions made it possible to maintain the manageability of the banking system and lay the groundwork for the country’s post-war economic recovery.