THE RELATIONSHIP BETWEEN BANKING SECTOR DEVELOPMENT AND ECONOMIC GROWTH

The banking sector is an integral part of the modern economic system of any developed country. In this regard, there is an analytical issue in the causal relationship between the status of bank development and economic well-being of the country. In the course of this article, the authors analyzed the scientific literature on the relationship between the state of development of the banking sector and the country's economic growth, which resulted in the hypothesis that the development of the banking sector has a positive effect on economic growth. In the course of the study, the main channels of influence of the banking sector on the country's economy were determined. On the basis of statistical data of the National Bank of Ukraine, an analysis of the dynamics of indicators of integration, inclusiveness and financial stability of the banking sector of Ukraine was conducted. As a result, it was clarified that the state of the banking sector is subadaptive to the development of the economic system as a whole. It is determined that significant integration of the banking sector into the economy stimulates the rapid penetration of creep phenomena geographically, structurally and subjectively. A cluster analysis of bank's insolvency dynamics was conducted, according to the reasons for their bankruptcy. It was revealed that the biggest problems in banks were caused by the loss of liquidity and capital, due to the construction of an inefficient system of risk management, which, in turn, depends on the quality of building a corporate governance system. The process of withdrawal of banks from the market is investigated and the positive and negative aspects of this process are considered. The impact of crisis phenomena in the banking sector in terms of the private and public segment of the Ukrainian economy has been evaluated. It is found that the total losses of the private sector are significant, but the biggest burden fell on the state budget of Ukraine and is related to the nationalization of PrivatBank.