Control over the stability of banking activity during war in Ukraine

Abstract

This article is devoted to control (supervision and regulation) in the field of banking activity and its condition in Ukraine during the deployment and spread of the military aggression of the Russian Federation in relation to Ukraine and in the current period (the large-scale Russian-Ukrainian war that began on February twenty-fourth, two thousand and twenty the second year and continues to this day). The state in general, and especially during the period of martial law, is entrusted with strict control (supervision and regulation) in the field of banking activity, since this sector is very important due to the fact that it is the basis of the stable development of the economy of any state. However, well-known crises that occurred earlier and occur quite often these days testify to the imperfection of regulation and supervision in the field of banking activity. So, for example, one of the last most painful crises, which, unfortunately, is still ongoing, began back in the year 2014 during the deployment of the «hybrid war» of the Russian Federation against the integrity of Ukraine in the East of Ukraine and the annexation of the Autonomous Republic of Crimea. The specified crisis is a vivid example of the imperfection of supervision and regulation of the economic sector, and especially of the regulation of the banking system, including the administrative regulation of banking activity. In the light of the above, there is an urgent need to reform this institute, taking into account the experience of foreign countries that successfully exercise control in the field of banking during the period of martial law in the state. The article highlights the issue of research into the main causes of economic decline, which are the result of military conflicts, and ways to overcome crises in the post-war period. Special attention is paid to the stability of the banking sector of the economy, which has a significant impact on the entire economy of the country, during protracted military conflicts. The reasons for the emergence, development and possible ways of avoiding the collapse of the economy have been studied. A significant part of the article is devoted to the study of possible ways of overcoming economic crises in the country and overcoming the decline of the banking sector during the war.