Transformation of the Ukraine’s banking system: a study of new capitalization requirements

The capitalization of the banking system is a key factor in ensuring the financial stability of a country, especially in times of economic, social, or political turmoil. Studying the transformation of capitalization requirements for the banking system of Ukraine and indicators of its condition in the context of current challenges is necessary to develop an effective mechanism for maintaining bank stability, withstanding economic shocks, and reducing the risk of banking and financial crises. The article examines the impact of the transformation of capital requirements on the capitalization of the Ukrainian banking system. The aim of the study is to analyze changes in the capital structure of banks, their impact on financial stability and functioning of the banking system in the context of economic instability. The study combines economic and statistical analysis, visualization of relationships based on Scopus data, and assessment of the banking system’s capitalization. The key thematic clusters were identified using VOSviewer, which allowed us to form a terminological model that reflects the frequency of use of key terms and their interrelationships within scientific research. Five main thematic clusters in research on this issue were identified. The new requirements for the capital structure, introduced on August 5, 2024, provide for a three-tier system that helps to increase the financial stability of banks and their adaptation to European standards. It is found that the transformation of capital requirements contributes to strengthening the banking system and its adaptation to crisis conditions, but requires a balanced regulatory policy. The statistical analysis of indicators characterizing the capitalization of the banking system of Ukraine has revealed the impact of internal and external factors on their dynamics and proved that in a country characterized by risks of various kinds and a bank-centric financial system, a high level of capitalization of the banking system is a guarantee of financial system stability. The results of the calculation of the banking system’s integrated capitalization ratio demonstrate that the system’s reliability has increased. The current level of banks’ capitalization will help reduce their vulnerability to shocks, strengthen their financial stability, and ensure effective support for lending to the economy.