Integrating Ukraine's Banking System into International Finance

This book is for readers who are interested in how Ukraine, which was an integral part of the economy of the Soviet Union, is transformed from a planned socialist economy to a market economy after declaring sovereignty. The object of the study is the development of the banking system. The specifics of this system's development were that it was formed predominantly by private investment and was a tool for stimulating private initiative in the economy. There were both periods of growth when foreign capital rushed into the country through financial investment and deep crises when the IMF, as lender of last resort, doused the fire. Today, subsidiaries of international financial holdings from two dozen countries are present in the Ukrainian banking market. They have successfully weathered a succession of economic shocks, and are continuing to develop successfully. The article provides a brief history of the entry of foreign capital. The main indicators of banks with foreign capital participation as of the second quarter of 2019 are analysed. The main macroeconomic imbalances and risks are considered. Despite its current low international rating, Ukraine could prove to be a hotspot for profitable investment.