Assessment of the Banking System of Ukraine by a Multiplicative Model

Abstract

The essential part of market relations in Ukraine is an adequate modern banking system, on which depend real economic sector, flexibility and elasticity of monetary system, soundness of national currency, etc. The level of its stability fully characterizes the state of economy in general and the ability to meet its obligations and to ensure profitability at the level of adequate functioning in a competitive environment. In such circumstances, requirements for stability and efficiency of banking system and individual bank are rising significantly. Financial stability of banking system should be not only short term objective, but also strategic, on which, in its tern, will depend the dynamics of market-style reforms and upturn of social standards.It also ensures the necessity to search modern forms of analysis and state estimate of banking system of Ukraine by, among the others, mathematical methods that will help to make appropriate conclusions about suitability and possibility to use practically the chosen model.