Dynamics of development of banks with foreign investments in Ukraine under martial law

Introduction. Issues of the institutional development of the banking system, which need to be urgently resolved in the context of economic recovery, are currently relevant. The authors analyzed the results of the activities of banks with foreign investments for 2022–2024, their contribution to the stability of the economy in the conditions of full-scale Russian aggression against Ukraine. Problem Statement. The above calculations make it possible to compare the financial results of clusters of banks: with the participation of the state in the capital, banks with foreign capital and banks with private Ukrainian capital. The purpose is to assess the financial condition and development prospects of banks with foreign capital in Ukraine. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. An analysis of the dynamics of changes in the resource base of banks at the expense of legal entities and individuals, as well as the dynamics of credit and investment portfolios in the context of macroeconomic policy, which influenced the development of banks with foreign capital in 2023. The importance of restoring the Government's cooperation with international financial organizations in 2024 was emphasized . Conclusions. It is proposed to make institutional changes in the development of the banking system in order to increase the capitalization of this sector and attract foreign capital to the market through direct investment in the banking sector. The performance results of banks with foreign capital indicate that the internal risk procedures they use are more effective. Emphasis was placed on the fact that the financial security of Ukraine should be based on a transparently managed banking sector, which should have a long-term development strategy. In order to increase the attractiveness of the domestic banking market, in-depth judicial reform and further implementation of business rules in accordance with European standards are needed. After the end of the war, Ukraine will become a place of profitable investment for European business, despite the low current international investment rating.