THE CORPORATE GOVERNANCE REFORMS OF THE STATE-OWNED BANKS OF UKRAINE

The main purpose of the article is to analyze the reforming process of the corporate governance of state banks in Ukraine. The research is based on the review of existing theories, statistical data and official documents. The article discloses information on financial results and provides the main activity indicators of state banks of Ukraine. It is considered the main risks of Ukrainian banking system stability, among which are the high level of the state share and the presence of poor-quality assets in the state-owned banks of Ukraine. The features of existing corporate governance of state-owned banks in Ukraine were investigated. The results of comparing the international principles of corporate governance in banks with domestic practice have made it possible to highlight the main issues of Ukrainian state banks. It has been shown that the corporate governance system in Ukrainian state banks did not correspond to the best international practices, owning to the fact that legislation determined the status, powers, composition and work principles of the board of directors locally. The consequences of the low level of corporate governance (insider lending for business of individual politicians and their associated individuals, state-owned enterprises with a low level of creditworthiness) were considered. The new approaches for corporate governance in state-owned banks, which were focus on revision of the principles and mechanism of corporate management of state-owned banks and have to change the business and operating models of state banks in order to achieve the highest efficiency of their activities, were considered. The article shows the positive aspects of reforms, as well as possible risks. The findings are useful for practitioners and researchers to gain knowledge of the implementation of corporate governance reforms in state-owned banks.