ROLE OF THE BANKING SECTOR IN THE FORMING OF FINANCIAL POTENTIAL OF BUSINESS ENTITIES

Abstract

The article defines the role of the banking sector of the national economy in the forming of financial potential of the main business entities in terms of generating the country’s GDP. In order to research development retrospective of the concept of financial potential, chronological analysis of its formation was conducted. The results of above-mentioned analysis displayed the dualistic nature of the concept under consideration, which is manifested in the presence of two main approaches to its definition: resource and effective. Detailed definition of the essence of above-mentioned approaches allowed to form hypothesis about the existence of a relationship between the country’s banking sector and the financial potential of its main business entities. In order to confirm this hypothesis the analysis of the capital structure of the main sectors of national economy over the past 3 years was carried out, during which it was found that the greatest provision of equity is characteristic of transport, scientific and technical sectors (more than 60,0%). In General, the presence of a significant share of liabilities in this structure (in the amount of 70,8% at the beginning of 2018) allowed to confirm the hypothesis of the importance of the banking sector in the formation of the financial potential of business entities. In order to determine the current state of the banking sector of the country, according to the annual report of the National Bank of Ukraine, an analysis of the structure of licensed banks in terms of their authorized capital was conducted. This analysis allowed to establish the development direction of the banking sector of the country, which is based on qualitative changes – the growth of the authorized capital of banks. The analysis of the main indicators of domestic banks allowed to determine the following characteristic features of the domestic banking sector development: the high concentration level Ukraine’s banking sector, which is manifested in the total share of the 10 largest banks in the retail Deposit market, which is 76.1%; a direct relationship between the size of assets, liquidity and equity; a high level of banks dependence on deposits of individuals; the presence of a positive trend in the national structure of licensed banks