Problem aspects of banking control during martial law

Abstract

With the start of a full-scale war in Ukraine, the country's economy suffered a severe blow and was brought out of balance to some extent, as it was impossible to fully prepare for the worst scenario. There is an urgent need to change the usual algorithm of actions and prepare the financial system for prolonged military operations on the territory of Ukraine. In order to maintain control over the economy, stop the inflation process and not deepen the economic crisis to a catastrophic state, the state authorities, the National Bank of Ukraine, the Ministry of Finance, etc., took a number of necessary measures. In this work, the changes in the banking control system were highlighted and illuminated. This article discusses the concept of bank control and its key aspects. The main directions of bank control in peacetime and during martial law in Ukraine are listed. The process of the Bank's performance of its main function is considered. The main risks in the financial sphere and the possibility of their verification are listed. Inflationary expectations for the end of 2022 are indicated. The main actions of the National Bank of Ukraine at the beginning of the war, their purpose and results are noted and researched. The main problems of the economy of Ukraine during the war, its weaknesses, were identified. A parallel was drawn with the actions of the National Bank during the crisis caused by the coronavirus in 2020. Future possible steps to improve the state of the economy and prospects for further development are indicated. The directions in which Ukraine will move after the end of the war are listed.