The role or the banking system in supporting the financial equilibrium of the enterprises: case of Ukraine

Abstract

Te fіnancial equilibrium (“fіnancial health”) of the enterprises is a prerequisite for their sustainable development, which ensures macroeconomic stability of the economy and the welfare of the state. It should be supported by the banking system, which performs the function of the effective reallocation of capital. Recently, the Ukrainian banking system itself is in a challenging situation and is undergoing a period of transformation. Te purpose of the study is to assess how sufіciently the banking system of Ukraine supports the fіnancial equilibrium of enterprises and to fіnd the possibilities to strengthen its role in the progress of the real sector of economy. Te authors single out three stages of fіnancial equilibrium growth; each of them can be supported by the relevant banking services. Te empirical analysis proves that the Ukrainian banks successfully ensure only the fіrst stage, namely, liquidity balancing. To quantitatively assess the role of the banking system in supporting the enterprises’ fіnancial equilibrium, a multivariate regression applying mathematical gnostic analysis in the program shell R Console is used. Te research makes it possible to fіnd out that only the economy monetization, the share of time deposits of economic entities and growth rate of mortgage loans have a positive effect. Te authors conclude that the problems of both enterprises and the banking system are in the sphere of development and implementation of government economic policy and are aggravated by the restrictive monetary policy.