FINANCIAL AND CREDIT ACTIVITY: PROBLEMS OF THEORY AND PRACTICE
Volume 4 (51), 2023
DOI: 10.55643/fcaptp.4.51.2023.4051 53
PROSPECTS OF THE POST-WAR RECOVERY OF
THE FINANCIAL SECTOR OF UKRAINE
ABSTRACT
The armed aggression and the resulting socio-economic crisis pose challenges of pre-
serving the national financial sector and its post-war recovery. A special role of the
financial sector in ensuring the adequacy of functioning of the economic mechanism
and the socio-economic system of the state further aggravates this problem. The aim
of the article is to identify the key challenges of the post-war recovery of the national
financial sector and to determine the main needs and motivations of key groups of
stakeholders in the context of reforming the financial sector of Ukraine. The method of
economic and statistical analysis, as well as stakeholder analysis, were applied in the
course of the research. The methodological framework of the research is the method of
strategic analysis. The study identified the key challenges of the post-war recovery of
the national financial sector, as well as the motivations and needs of the main stake-
holder groups. This indicates the systemic nature of the challenges that the national
financial sector faces under the influence of armed aggression. As a result, the need to
analyse the key indicators of the state of the financial sector at the current stage of the
active phase of the war is emphasized. In particular, a significant increase in the cost
of financial resources for economic agents was noted, which is manifested in a sharp
increase in the NBU discount rate from 9.0% in 2021 to 25.0% in 2022. The suppression
of exchange trade in Ukraine was identified, which indicates a decrease in business
activity in the current and prospective periods. In particular, the Index of the PFTS
Ukraine Stock Exchange decreased to 519.2 (2022) from 522.7 (2021), and the total
trading volume of PFTS decreased to UAH 90,251 million (2022) compared to UAH
221,578 million (2021). The existence of significant macro-financial and macroeconomic
disproportions in the context of stimulating the post-war development of the financial
sector of Ukraine is indicated, taking into account national priorities. Prospects for fur-
ther research are in-depth stakeholder analysis of the focused development of the na-
tional financial sector at the post-war stage.
Keywords: macro-financial stability, post-war recovery, financial sector infrastructure,
stakeholder
JEL Classification: G18, H00, P43, P47
INTRODUCTION
It is difficult to restore socio-political, socio-economic and other systems after armed
aggression. The financial sector of the state is a key component of the systems referred
to above, and the basis for their adequate functioning in the short and long term. It
should be noted that the financial sector is one of the most important areas of concen-
tration of key groups of stakeholders throughout the post-war reconstruction process,
as it is necessary to establish stability in the country and restore the growth of the
national economy after the war. Among others, the financial sector is critical for the
adequate functioning of micro- and macro-level economic agents. This applies, in par-
ticular, to making payments, obtaining loans, making savings, and investing. The finan-
cial sector is usually one of the first to be affected in countries during armed aggression,
as the destruction of infrastructure, population displacement, and lack of trust in the
financial sector can cause serious socio-economic damage.
DOI: 10.55643/fcaptp.4.51.2023.4051
Nataliia Prykaziuk
D.Sc. in Economics, Professor of the
Department of Insurance, Banking and
Risk Management, Kyiv National
University named after Taras
Shevchenko, Kyiv, Ukraine;
e-mail: researcherautor@gmail.com
ORCID: 0000-0002-7813-8590
(Corresponding author)
Oksana Lobova
PhD in Economics, Associate Professor
of the Department of Insurance,
Banking and Risk Management, Kyiv
National University named after Taras
Shevchenko, Kyiv, Ukraine;
ORCID: 0000-0001-5938-7244
Tatiana Motashko
PhD in Economics, Associate Professor
of the Department of Insurance,
Banking and Risk Management, Kyiv
National University named after Taras
Shevchenko, Kyiv, Ukraine;
ORCID: 0000-0002-6486-9472
Olena Prokofieva
PhD in Economics, Associate Professor
of the Department of Insurance,
Banking and Risk Management, Kyiv
National University named after Taras
Shevchenko, Kyiv, Ukraine;
ORCID: 0009-0005-3715-3558
Volodymyr Yukhumenko
PhD of Economic Sciences, Department
of Insurance, Banking and Risk
Management, Faculty of Economics,
Taras Shevchenko National University
of Kyiv, Kyiv, Ukraine;
ORCID: 0000-0001-8705-0454
Received: 02/05/2023
Accepted: 23/07/2023
Published: 31/08/2023
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2023 by the author(s)
This is an Open Access article
distributed under the terms of the
Creative Commons CC-BY 4.0