Analysis of compliance with economic standards by Ukrainian banks

Issue: № 10/2, 2020


Effective functioning and productive development of the banking system is a necessary condition for Ukraine’s economic development. Therefore banking supervision is an integral element of maintaining stability in the banking system. The National Bank of Ukraine implements this task by establishing regulatory and legal support for banking activities and establishing economic standards for banking activities. The paper is devoted to studying the essence of banking supervision and the establishment and monitoring of economic standards of banking as a direction of its providing, as well as assessing the level of compliance with economic standards by Ukrainian banks. The paper presents the primary economic standards that banks operating in Ukraine must comply with. The calculation of the integrated indicator is based on the values of the following standards: capital – the minimum size of regulatory capital, sufficiency (adequacy) of regulatory capital, the sufficiency of fixed capital; liquidity; credit risk – the maximum amount of credit risk per counterparty, large credit risks, the maximum amount of credit risk for transactions with persons related to the bank; investment – investing in securities separately for each institution, the total amount of investment. A methodical approach to calculating the integrated indicator of compliance with economic standards in banking is proposed. The main stages are the following: standardization of normative values, the formation of a reference vector, calculation of Euclidean distances, and determination of values of the integral index. In 2017, the integrated indicator of compliance with economic banking standards increased significantly, increasing from 0.16-0.23 in February and March to 0.60 in August. In 2018, the compliance with economic standards by Ukrainian banks was as a whole at a higher level 0.50-0.60.

Keywords : banking supervision, economic standards, an integrated indicator of compliance with economic standards in banking


1. On banks and banking: Law of Ukraine № 2121-III of 07.12.2000. URL: (in Ukrainian)
2. Glossary of banking terminology: National Bank of Ukraine. URL: article?art_id=124734&cat_id=124733. (in Ukrainian)
3. Romanyshyn V.O., Umantsiv Y.M. Central Bank and monetary policy. Kyiv: Attica, 2005. 480 p. (in Ukrainian).
4. Kovalenko M.M. Components, functions and tasks of banking supervision as a mechanism of state regulation. URL: (in Ukrainian).
5. Yepifanov A.O. Methodological components of effective development of the banking sector of the economy of Ukraine: monograph. Sumy: University Book, 2006. 417 p. (in Ukrainian).
6. Liubun O.S., Raievskyi K.Y. Banking supervision. Kyiv: Center for Educational Literature, 2005. 416 p. (in Ukrainian).
7. On the National Bank of Ukraine: Law of Ukraine № 679-ХІV of 20.05.1999, as amended. and ext. URL:про%20национальний%20банк. (in Ukrainian)
8. Kovalenko V.V., Korenieva O.H., Cherkashyna K.F., Krukhmal O.V. Banking system of Ukraine: monograph. Sumy: UABS NBU, 2010. 187 p. (in Ukrainian).
9. Yudina S.V., Hanziuk S.M., Shkarupa K.A. Peculiarities of fulfillment of NBU economic standards by commercial banks. Young Scientist. 2017. № 3 (43). pp. 890–894 (in Ukrainian).
10. On approval of the Methodology for calculating economic standards for regulating the activities of banks in Ukraine: Resolution of the National Bank of Ukraine, Methodology of 02.06.2009 № 315 URL: (in Ukrainian)
11. Indicators of the banking system. URL: (in Ukrainian)
12. Kremen V.M., Kremen O.I., Brychko M.M. Assessment of Compliance with Financial Supervision Requirements in the Banking Sector. Economic Space. № 123. Dnipropetrovsk: PDABA, 2017. pp. 119-126 (in Ukrainian).
13. Kremen V.M. Methodological approaches of financial supervision development in Ukraine: thesis … Doctor of Economics: 08.00.08 / Sumy State University. Sumy, 2012. 491 p. (in Ukrainian).

Download article