Nationalization of banks in ukraine as a method of regulating banking activity

Abstract

The banking system of Ukraine and many developed countries of the world is represented by commercial and state banks. State banks are an important tool of the country's economic development, regardless of the degree of development of its economy. The main feature of state-owned banks is their ability to stimulate economic growth through the financing of certain sectors or regions, the need for which is not met by private banks. During the period of economic depressions and downturns, especially after the Second World War, the first waves of nationalization of commercial banks began, which led to the creation of new state-owned banks around the world. State-owned banks, unlike private ones, are capable of correcting market failures, such as providing long-term loans for infrastructure projects, environmental and educational programs, and financial inclusion programs. However, along with the obvious advantages, the activities of state-owned banks are often associated with politicians and officials who are engaged in lobbying for their own interests, or will receive preferences and special conditions for conducting business close to their environment.