Stabilizing Role of the Banking System in Business Management Amidst Russia-Ukraine War

Abstract

The full-scale war unleashed by the Russian Federation in February 2022 in Ukraine significantly affected the state of the country’s economy as a whole, as well as business opportunities. From this perspective, it became necessary to analyze which financial sources could enable businesses in Ukraine to maintain their business activities and effectively stabilize the recession under present conditions. This became the purpose of this article. It turned out that the banking system could potentially be the main source
of stabilization for anti-crisis business management on this path, which it has actually become. A number of conclusions were drawn based on systematic and complex research approaches, in the course of a two-stage analysis of surveys on business sector entities, the structure and dynamics of commercial banks’ performance indicators in Ukraine as of 2022, their ability to provide business with the necessary banking services. The scope of business lending is gradually decreasing. This is caused by the unwillingness of banks to cooperate with problematic businesses with low creditworthiness. And this problem still remains unsolved. As for the deposit policy, banks have increased deposit rates, which is a positive trend. At the same time, the requirements for carrying out cash operations have become more complicated, and the scope of additional information to be provided by businesses has increased, which may further increase business operational risks. The stock market saw a suspension of activities during the period of shock, and then trading and securities transactions resumed. In general, the stabilizing role of the banking system for business in Ukraine during this period had a positive effect on the general economic situation.