DEPOSIT POLICY OF BANKS OF UKRAINE IN CONDITIONS OF COVID-2019 PANDEMIC
Abstract. The pandemic COVID-2019 has been an unexpected challenge for the economies of many countries. In order to avoid the rapid spread of the disease, the governments of most countries imposed quarantine, forcibly closed borders, imposed restrictions on the movement of the population, and so on. Obviously, this provoked instability in financial markets, sharp fluctuations in national exchange rates and worsened the economic expectations of the population.
In the scientific article, the authors conducted a study of the deposit policy of Ukrainian banks in this economic instability, which was provoked by the COVID-2019 pandemic. Based on statistical data, the structure of deposits of legal entities and individuals, the dynamics of interest rates, the regional distribution of deposits, as well as identified the leading banks to raise funds. The authors obtained unexpected conclusions about the lack of significant impact of the pandemic on the deposit market. Despite all the negative forecasts, there was no significant outflow of deposits in Ukraine, rather the opposite — banks were able to increase the amount of funds raised from individuals and legal entities. However, the negative expectations of the population affected the structure of deposit resources, in particular, in the analyzed period the share of demand deposits and short-term deposits increased significantly.
Based on the analysis of experts’ opinions, as well as the forecast of the main economic indicators that have an impact on the deposit market, three scenarios for further development of Ukraine’s economy and the banking sector were developed and substantiated — optimistic, critical and realistic. According to the authors, the most reasonable in these conditions may be a realistic scenario that will provide positive dynamics in the growth of basic economic indicators, which will affect the growth of deposit resources in banks, while taking into account potential non-economic risks that could destabilize the situation.
The findings can be applied in developing strategies for the development of individual banks and the banking system as a whole.
Keywords: deposits, deposit policy of banks, pandemic, financial resources, banks, financial risks.
JEL Classification G21, E58
Formulas: 0; fig.: 4; tabl.: 10; bibl.: 13.
How to Cite
Copyright (c) 2021 В. Фостяк, Я. Танчак, В. Другова, І. Алєксєєв, М. Бондарчук
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors of research articles published in the Collection agree to the following terms:
- authors reserve the right to his authorship of scientific articles and broadcast journal right of first publication of scientific articles licensed under CC Attribution (Creative Commons Attribution License), which allows others to freely distribute the published scientific article referring to the original authors of the article and the first publication of the article in Research Works’ Collection on "Finance and credit activity: problems of theory and practice";
- authors have the right to enter a separate agreement concerning additional exclusive distribution of the article in the form it was published in the journal (for example, to post the research in an electronic storage of the establishment or publish as a part of a monograph), provided that the reference to the first publication of the article in the Collection.