NORMATIVE AND LEGAL ASPECTS OF BANKING REGULATION AND ENSURING THE RELIABILITY OF BANKING SYSTEM OF UKRAINE

The author of the article has studied normative and legal aspects of banking regulation and ensuring the reliability of banking system of Ukraine, in particular, the basic norms of the banks activity within the system of regulatory measures of Impact of the National Bank of Ukraine, their impact on the financial stability of the Ukrainian banking system, and has determined the possibilities for improving the legal regulation in this area. The capital ratios, liquidity ratios, credit risk standards, and investment standards have been analyzed. It has been determined that the devaluation of the national currency and the introduction of the volatile exchange rate led to the need to refuse from the use of the standards of the general open currency position, the general long-term open currency position, the general short-term open currency position in 2009 and to establish limits for the open currency position of banks. In order to increase regulatory capital by banks, the author has offered to apply a differentiated approach to various groups of banks while establishing regulatory capital adequacy ratios, taking into account their potential capital formation opportunities and the level of profitability. It has been emphasized that the reliability of the storage of bank deposits and guarantees provided to creditors is the stability of the banks activity and the effectiveness of the chosen strategy for managing financial risks; and the main indicator of the efficiency of business entities' activities, in particular banks, is the defined level of profitability. In this regard, the author has offered to amend existing regulatory acts, in particular, to establish a standard for the effectiveness of the use of short-term assets and a standard for the efficiency of using total assets. The issues of licensing banking activity, the formation and use of the reserve fund, as well as reserves for reimbursement of possible losses through active banking operations, etc. have been defined as the perspective direction of the research concerning the legal provision of banking regulation.