MONITORING THE EFFICIENCY OF THE BANKING SYSTEM OF UKRAINE

The article considers the results of monitoring the efficiency of the banking system of Ukraine. Monitoring the effectiveness of the banking system is based primarily on the study of the profitability of the bank, which management achieves in the process of managing this bank. During the monitoring of the efficiency of the banking system of Ukraine, attention was focused on the studied indicators in terms of groups of banks depending on their owner. In the period 2015-2020, half of the domestic banking entities were inefficient. The management of such banks was unable to establish effective management, and therefore the vast majority of banks were declared insolvent and liquidated from the banking system. The crisis in the banking system showed the depth of the problems that banks had accumulated at that time. This crisis also had positive consequences for the economy, as only the most stable banks remained operational, with liquidity, solvency, profitability, and organization and business models effective. The absolute indicator of the efficiency of the banking system is the dynamics of net profit.The financial result of Ukrainian banks during 2015-2017 was negative, and the banking system was unprofitable. The banking system's total net profit was received in 2018. In 2019, profit increased significantly, but during 2020 the growth rate slowed down. The reason for the long-term losses of banks in recent years was, first of all, the decline in asset quality. The spread of the pandemic in 2020 worsened the financial condition of banking institutions, but the number of unprofitable banks did not increase. Over the last three years, there has been a tendency to increase both total operating income and their main components, namely net commission and net interest income. Only foreign banks in terms of groups had a consistently high operational efficiency during 2018-2020. The results of the study allow us to conclude that in general the banking system at the end of the study period is working effectively. The future of the banking system in Ukraine cannot be accurately predicted. Banks need to be able to adapt quickly to changes in the factors that affect their profitability.