«PURGING» OF THE BANKING SYSTEM: IMPACTON THE KEY PERFORMANCE INDICATORS OF BANKS

The article explores the process of liquidation of banks, which has become significant in the banking system of Ukraine, examines the positive and negative aspects of this process, analyzes the current legislation on the return of funds by the Deposit Guarantee Fund and focuses on the most problematic issues of the procedure of payment of funds, which are guaranteed by law.An estimation of inflationary and devaluation effects on the key indicators of the banking system has been conducted, which made it possible to avoid distortion of real statistical data and make a more accurate analysis of functioning of the banking system without the influence of external factors.Based on statistical data of the NBU and the Deposit Guarantee Fund, an analysis of the results of a large-scale "clearing-up" of the domestic banking system was carried out in order to identify the consequences of such a process on the performance indicators of the banking sector in Ukraine.It was clarified that decrease of the number of banks led to a significant decrease of assets of the banking system and resource base of banks, the legislation guaranteed the return of funds of individuals and funds of entities and banks that were invested in liquidated banks are returned in order of priority of satisfaction of claims to the bank if funds are available. The issue of the lack of statistical information on the volume of repayments of entities and banks that were invested in liquidated banks is considered, which makes it impossible to carry out a more complete analysis of the impact of liquidation of banks on the performance indicators of the Ukrainian banking system.In general, the process of "cleaning-up" the banking system is assessed as a negative impact on the development of the domestic banking sector, which led to the decline of its solvency, in particular, by "freezing" the funds of other banks in banks that were in a state of liquidation, which gave rise to the "domino effect" in the banking system.