ANALYSIS OF THE PERFORMANCE OF UKRAINIAN BANKS IN TIMES OF WAR:  RISKS, FUNDING, ASSETS

doi:10.26565/2524-2547-2025-69-19

Nataliia Pohorelenko V. N. Karazin Kharkiv National University 4, Svobody Sq., Kharkiv, 61022, Ukraine https://orcid.org/0000-0001-9815-9818

DOI: https://doi.org/10.26565/2524-2547-2025-69-19

Keywords: Banks, Risks, Funding, Assets, Financial Stability

Abstract

The article analyzes the performance indicators of Ukrainian banks in the context of relevant research on risks, funding, and assets. These components today largely shape the ability of the banking system to fulfill its obligations to depositors and borrowers, as well as to ensure an appropriate level of financial stability.

Martial law, high level of macroeconomic uncertainty, influence of global financial markets, and constant changes in the legislative framework determine the ability of banks to be ready to quickly adapt and develop adaptive and effective strategies for banking activities.

Risks that shape the operating environment of banks are a determining factor in their strategies. The study provides a comparative analysis of the risks that have a significant impact on the financial stability of the banking system. In the context of economic instability, the role of risk management becomes crucial, especially in the context of risk prevention. It is found that improving methods of risk assessment and management helps to reduce losses and increase confidence in banks. Ensuring the stability of banks in a risky environment is a key to the financial security of the government.

An analysis of the funding indicators of Ukrainian banks has shown that diversification of capital sources and the development of long-term funding are important components of their sustainability. Dependence on short-term deposits poses risks to banks’ liquidity, especially in times of crisis. The introduction of modern financial instruments, such as bonds and syndicated loans, helps to expand funding opportunities. Attracting international capital is also of strategic importance, especially in the context of postwar reconstruction and development, as Ukraine’s banking system will face increased risks after the war. Developing new approaches to liability management allows banks to respond more effectively to market changes.

An analysis of Ukrainian banks’ assets has shown that asset quality is a key factor in financial stability. Non-performing loans remain one of the main challenges for the banking sector, requiring the introduction of effective restructuring and resolution mechanisms. Despite the transition of banks to a new capital structure, the accumulated structural problems remain relevant. Improving asset quality helps to increase banks’ profitability and their ability to meet their obligations to depositors. It is important to develop innovative approaches to asset management, including the introduction of digital technologies and process automation.

The unprecedented challenges faced by Ukraine’s banking system since the outbreak of the war have strengthened coordination between the NBU and banks, which has helped to ensure the relative stability of the financial sector under extreme pressure. Continuous monitoring, revision of strategies, and appropriate responses to current challenges will remain important to ensure the stability of Ukraine’s financial system - now and in the post-war period.

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Author Biography

Nataliia Pohorelenko, V. N. Karazin Kharkiv National University 4, Svobody Sq., Kharkiv, 61022, Ukraine

D.Sc. (Economics), Professor

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