THE INFLUENCE OF FOREIGN CAPITAL ON THE BANKING SYSTEM OF UKRAINE

Abstract

The article examines the specifics of the activities of banks of foreign banking groups in Ukraine and their impact on the efficiency of the banking system in general. The national legislation and regulatory legal acts of the National Bank of Ukraine about the creation, functioning and supervision of their activities are analyzed. The influence of foreign banks is difficult to overestimate, because their potential and real ability to attract foreign investments in the banking sector, as well as modern banking technologies, anti-crisis management practices are decisive for improving the performance of the banking sector. The share of banks of foreign banking groups at the beginning of 2025 was 42,6%, which is a significant indicator of influence on the national banking system. According to the National Bank of Ukraine classification, the banks of foreign banking groups include 14 banks representing foreign investors from Aus-tria, France, Hungary, the USA, Poland and other countries. For the period 2020–2024 foreign demonstrated stable growth in assets, liabilities and equity, however, their growth rate is significantly lower compared to state or private banks. This indicates a more balanced policy in managing banking risks. Despite the identified steady trend in recent years towards a decrease in the share of banks of foreign banking groups in the structure of assets of the banking sys-tem of Ukraine, the profit of foreign banks for the period 2022–2024 increased by 58 times. The largest profit growth leaders were JSC “Credit Agricole Bank”, “Deutsche Bank DBU” and “OTP Bank”, and the largest contribution to the total profit of banks with foreign capital in 2024 was made by: JSC “Raiffeisen Bank”, “OTP Bank”, “Credit Agricole Bank” and “Ukrsibbank”. High profitability indicators confirm the successful reintegration of foreign banks into the post-crisis banking environment of Ukraine. Thus, the authors have proven that banks with foreign capital are not just a part of the financial system; they are leaders in its transformation. Further improvement of their activities is a necessary condition not only for the post-war economic recovery, but also for the formation of a new, effective and sustainable banking model of Ukraine in the face of global challenges.