BANK’S NVESTMENT POTENTIAL AS A GUARANTEE OF THE FINANCIAL STABILITY OF THE BANKING SYSTEM OF UKRAINE IN THE CONDITIONS OF POST-WAR RECOVERY

Abstract

Because of writing the scientific work, it was established that the investment potential of the banking sector is the foundation of the financial stability and competitiveness of the banking system of Ukraine. It is proven that the sustainable development of the country's national economy and further prospects in the conditions of post-war recovery depend on the current state, assessment, dynamics and development of the investment potential of the banking system. It was determined that the priority task of state management is to support, develop and ensure effective functioning of the investment potential of the country's banking sector, increase investment attractiveness, competitiveness of investment activity of banks, maximization of investment and credit resources and their vectoring in priority sectors of economic development. It has been proven that the main interrelated factors of the level of development of the banking sphere and the financial stability of the banking system of Ukraine are cooperation in the European integration and globalization financial sphere and the integration of banking, industrial and commercial capital for the purpose of increasing investment potential. The concept of the investment potential of banks is analyzed and the following author's definition of it is proposed: it is the driver/basis of the competitive development of the economy, which is manifested in the formation of existing and potentially possible investment capital for the implementation of real/financial investments that will have a synergy effect to ensure the financial stability of the banking system of Ukraine in the conditions post-war recovery. It has been established that the effective use of the investment potential of the banking sector will help to optimize the existing banking risks, ensure the stability of the development of the banking business, which is the basis of the financial stability of the banking system of Ukraine and will contribute to the revival of the country's economy in the conditions of post-war recovery. A sufficient volume of the bank's investment potential determines the real possibilities of its investment activity and, under the influence of micro- and macro-factors, ensures the financial stability of the entire banking system of Ukraine. Among the main banks of the country according to the funds paid to the budget as of 01.01.2023, despite the military aggression, the following banks have been identified: Privatbank, Ukrgazbank, Oschadbank and Ukreskimbank. According to the results of the study of the investment potential of the banking sector of Ukraine, the main steps to increase the efficiency of the formation and use of the investment potential of banking institutions were determined, namely: the development of motivational mechanisms for the participation of banking institutions in the financing of investment and innovation projects; state support for investment banks based on the introduction of a target structural model of the banking system of Ukraine; introduction of effective mechanisms for revitalizing the banking sector with an emphasis on the accumulation of long-term financial resources and optimization of their distribution. It was established that in order to ensure the financial stability of the banking system of Ukraine in the conditions of post-war recovery, it is necessary to create conditions for attracting foreign investments through banking institutions, which will ultimately create a synergistic effect in the growth, revival and development of the national economy.