RECOVERY OF THE BANKING SECTOR OF UKRAINE THROUGH THE IMPLEMENTATION OF AN INFLATION TARGETING REGIME
Abstract
Shcherbatykh D.V., Kotvytska N.M. RECOVERY OF THE BANKING SECTOR OF UKRAINE THROUGH THE IMPLEMENTATION OF AN INFLATION TARGETING REGIME
Purpose.The aim of the article is to analyse the impact of the inflation targeting regime on the financial sector of Ukraine, particularly the banking system, from the moment of its introduction to the present day, as well as assessment of the effectiveness of monetary policy in these conditions.Methodology of research. The following methods were used in the study: abstract and logical – to summarize information from various sources and create a comprehensive understanding of the research issues, the formation of theoretical conclusions and generalizations regarding the inflation targeting regime and its impact on the banking system; analysis and synthesis – to characterize the inflation targeting regime; graphical – to visualize the research results.
Findings. It was found that the inflation targeting policy contributed to the stabilization of the financial environment and the creation of a more predictable economic environment. The adaptation of the banking system to the social and economic challenges caused by macroeconomic changes under the support of the inflation targeting regime is assessed. It is analysed how inflation targeting affected the financial indicators of banks (return on assets, return on equity, bank concentration and share of non-performing loans) for Romania, Serbia, Turkey, Georgia and Ukraine. In addition, the article considers the role of digitalization and technological progress in shaping the future stability of the banking sector under inflation targeting.
Originality. A comprehensive analysis of the impact of inflation targeting on the banking system of Ukraine is carried out, considering international experience, which is an atypical approach, traditionally the impact of inflation targeting on macroeconomic indicators of the economy is more studied.
Practical value. The results of the presented study on the impact of inflation targeting on the reform of the banking system of Ukraine can be used in the preparation of scientific and methodological materials of the National Bank of Ukraine and its further research on this topic.
Key words: inflation targeting regime, banking system, central bank, stability, inflation, Ukraine, NBU.Keywords
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