REGULATORY POLICY OF THE NATIONAL BANK OF UKRAINE: PROBLEMS AND WAYS TO IMPROVE
DOI:
https://doi.org/10.15407/economyukr.2024.09.003Keywords:
methodological approach; National Bank of Ukraine; bank management; banking system of Ukraine; monetary policy; stability of prices and the banking system; economic development; credit monitoring mechanismAbstract
The article notes that the National Bank of Ukraine (NBU) must ensure price stability, high and stable level of economic development and optimal employment. Conceptually agreeing with this approach, the authors prove that the mechanism for its implementation does not ensure the fulfillment of the NBU mission.
Analyzing changes in the banking sector of Ukraine over the last 2.5 years, the authors emphasize that due to the implementation of insufficiently balanced NBU regulatory policy, the volume of banks' investments in NBU certificates of deposit increased almost fivefold –– from UAH 95 billion. at the beginning of 2022 to UAH 456 billion at the end of the year.
As a result of such an unsuccessful policy and contrary to economic logic, the NBU generated a huge positive liquidity balance in the banking sector, while the real sector of the economy suffers from a lack of funds
Undoubtedly, such regulatory actions, which are "unique" in modern economic theory and historical practice, cannot stand criticism and should be rethought and significantly revised.
The reasons and consequences of such an ineffective regulatory policy of the NBU are analyzed and important conceptual ideas aimed at improving bank management are suggested.
According to the formulated conclusions, it is necessary to create an effective mechanism of credit monitoring in Ukraine. The activity of which should be devoted to assessing economically justified levels of different banking rates and analyzing innovations in the ideology of banking management that are used in other countries where central banks operate very successfully.
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