Yurii Tustanovskyi, Oksana Denys, Nataliia Plieshakova


The main purpose of the article is to analyze the reforming process of the corporate governance of state banks in Ukraine.

The research is based on the review of existing theories, statistical data and official documents.

The article discloses information on financial results and provides the main activity indicators of state banks of Ukraine. It is considered the main risks of Ukrainian banking system stability, among which are the high level of the state share and the presence of poor-quality assets in the state-owned banks of Ukraine.

The features of existing corporate governance of state-owned banks in Ukraine were investigated. The results of comparing the international principles of corporate governance in banks with domestic practice have made it possible to highlight the main issues of Ukrainian state banks. It has been shown that the corporate governance system in Ukrainian state banks did not correspond to the best international practices, owning to the fact that legislation determined the status, powers, composition and work principles of the board of directors locally. The consequences of the low level of corporate governance (insider lending for business of individual politicians and their associated individuals, state-owned enterprises with a low level of creditworthiness) were considered.

The new approaches for corporate governance in state-owned banks, which were focus on revision of the principles and mechanism of corporate management of state-owned banks and have to change the business and operating models of state banks in order to achieve the highest efficiency of their activities, were considered. The article shows the positive aspects of reforms, as well as possible risks.

The findings are useful for practitioners and researchers to gain knowledge of the implementation of corporate governance reforms in state-owned banks.


State-owned banks; corporate governance in state-owned banks; Central Bank; banking; state property

Full Text:



Berger, A., Imbierowicz, B. & Rauch, C. (2016). The Roles of Corporate Governance in Bank. Failures during the Recent Financial Crisis. July, 47

Drobjazko, A. (2017). Naskil'ky potribni ekonomici banky z derzhavnym kapitalom. Retrieved from:

Kahkonen, S. (2017). Competitive and Well-Governed State Banks that Serve Everyone – A Prerequisite for Stronger Growth in Ukraine. The World Bank site. Retrieved from:

Laeven, L. & Levine, R. (2006). Corporate Governance, Regulation and Bank Risk Taking. Retrieved from: Publication/Forthcoming /bank_stability_RFS.pdf.

Macey, J. & O’Hara, М. (2003). The Corporate Governance of Banks. Economic Policy Review. Vol.9. № 1. April. Retrieved from:

Mülbert, P. (2010). Corporate Governance of Banks after the Financial Crisis – Theory, Evidence, Reforms. Working Paper. № 151

Natsionalnyi bank Ukrainy. (n. d.). Osnovni pokaznyky diialnosti bankiv Ukrainy [Main indicators of Ukrainian banks activity]. Retrieved from:

NBU: nacionalizacija Ukrgazbanku bula pomylkoju. Retrieved from: ua/articles/107797-nbu_natsionalizatsija_ukrgazbanku_bula_pomilkoju

OECD Guidelines on Corporate Governance of State-Owned Enterprises (2015). OECD organization. Retrieved from: guidelines-corporate-governance-soes.htm

Ohorodnyk, V., Demko, I. & Kozmuk, N. (2018). State-owned banks in Ukraine: origins and functions. Retrieved from: bitstream/123456789/1435/1/ Ohorodnyk_state-owned_banks.pdf

Repko, M. & Soltysjak, R. (2018). Derzhavni banky: shho vseredyni? [Dzerkalo tyzhnja]. Retrieved from:

Shho robyty derzhavi zi svoi'my bankamy (2017). Retrieved from: wp-content/uploads/2017/12/What-to-do-with-the-state-banks.pdf

Verkhovna Rada of Ukraine (2018). Zakon Ukrainy «Pro vnesennya zmin do deyakyx zakonodavchyx aktiv Ukrayiny shhodo udoskonalennya funkcionuvannya finansovogo sektoru v Ukrayini». Retrieved from: laws/show/2491-19

Verkhovna Rada of Ukraine (2001). Zakon Ukrainy «Pro banky i bankivsku diialnist» (zi zminamy ta dopovnenniamy). [Zakon of Ukraine «On Banks and Banking» (with amendments and additions). Vidomosti Verkhovnoi Rady Ukrainy – Bulletin of the Verkhovna Rada of Ukraine, 56. Retrieved from: laws/show/2121-14


  • There are currently no refbacks.

Copyright (c) 2019 Yurii Tustanovskyi, Oksana Denys, Nataliia Plieshakova

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN (Print) : 2449-7320

ISSN (Online) : 2449-8726