Present-day realities of risk management in the activity of Ukrainian banks

Modern development of banking business is connected with significant risks, which, taking into account globalization processes, political, economic problems in Ukraine and worldwide, development of technological and information systems, tend to transform, therefore it is very difficult to identify them and take preventive measures concerning their smoothing. Taking the abovementioned into account, it is reasonable to assess the modern state of risk management in the activity of Ukrainian banks and the influence on banking system development. For this purpose, the authors analyzed the performance of Ukrainian banks in the period 2008–2017 based on official statistic data of the National Bank of Ukraine and measures of economic standard of banking activity; studied the modern state of performing risk management in Ukrainian banks. The authors offer the process of effective organization of risk management system in national banks, which is a prerequisite for safe management of the bank. During the study, the authors found the significant decrease in the share of credits in total assets of Ukrainian banks and low quality of assets of Ukrainian banks during 2008–2017. This is caused by the significant amount of loan arrears, during the study period, the amount of loan arrears in 2016 increased by 36 times in comparison with 2008. The authors point to the need for improvement of assessment of banks’ riskiness, as a result of which they offer to use the methods of descriptive statistics for assessing risks and identifying them at all levels of banking activity

Modeling of diversification of foreign economic interactions

The article developed a basic simulation model of diversification of foreign economic interactions, which makes it possible to assess the mutual influence of key economic indicators and their reaction to changes in the equilibrium in world markets. The peculiarity of the developed model of diversification of foreign economic interactions is its functioning as a complex dynamic system in which many factors are interrelated, and the connections are dynamic. This makes it possible to calculate a simulation model that takes into account hidden and subtle connections. While modeling foreign economic interactions and evaluating the influence of various regulators on them, in addition to the stage of model development itself, mandatory parameterization of this model is proposed, that is, the determination of specific types of dependence between the factors included in the model and the parameters of these dependencies. The implementation of this model can be carried out in any simulation package

Smart Cities for the Sustainable Development of Local Communities: the Cases of the Volyn Region and the City of Lublin

The concept of a “smart city” is being actively implemented by several European cities to improve citizens’ quality of life and sustainability at the local community level. The article evaluates “smart city” programs adopted by Ukraine cities in the Volyn region based on well‑being assessment. To do so, a literature review was conducted to identify indicators to assess well‑being at the local level, and Benessere equo e sostenibile dei territori (BESdT, Equitable, and Sustainable Territorial Well‑being) was adopted. BESdT is an institutional measurement framework developed by the Italian National Institute of Statistics (ISTAT) to measure well‑being at the local level through a collection of indicators that cover different well‑being domains. The BESdT indicators available for Ukraine and Poland were collected and then measured. The main goals of the scientific research are to clarify if it is possible to use the BESdT indicators, which are used to assess smart cities in Southern Europe, for the countries of North‑Eastern Europe using the example of the Volyn region and the city of Lublin. The work investigates the indicators of smart cities and considers examples of their construction for 2003–2021. The results testify to the upward trend in implementing “smart city” programs in the regional context. In the Volyn region, the priority areas of project implementation are security, transport, and electricity. In this region, development can be identified concerning trends such as a reduced death rate, an improved balance between work and personal life, increased economic prosperity, and the improved environmental component and security of society. On the other hand, a reduction in innovation implementation and a loss of trust in the government were also identified. The analysis shows that the positive changes above are due to the actions of the central rather than the regional government. Based on the analysis, it was established that the countries of North‑Eastern Europe have the level of development of Smart City 3.0, except for Ukraine, which has generation 1.0, and in Southern Europe, generation 4.0

THE IMPACT OF FINANCIAL CRISIS ON THE BANKING SECTOR OF UKRAINE

Especially relevant today is the impact of the crisis on peculiarities of the banking sector of Ukraine. The main problems domestic banking sector is the high dependence on foreign capital, a large amount of bad loans and risks banking portfolios. Significantly affect the banking sector of Ukraine shadow economy. Significantly increased the number of insolvent banks. Increased risks for banks with low levels of problem loans, but aggressive lending strategy. One of possibility a qualitative change in the situation is the introduction of modern banking relationships. Required gradual transformation of traditional banking institutions in creative banks

Sustainable development: trends and realities of Ukraine

The purpose of the article is to analyze the current state of the principles of sustainable development of enterprises in Ukraine, and the impact on the economy of Ukraine as a whole. To this end, was performed an analysis of Ukraine’s position on the indicators of sustainable development in the dynamics. The article defines the essence of the concept of sustainable development and its main components: economic, environmental and social. The basic principles of ensuring sustainable business development are determined. The prerequisites for ensuring and supporting the implementation of the concept of sustainable development of the enterprise in management practice are considered. The proposals on the innovative nature of economic development in the context of sustainable development of domestic enterprises are studied and substantiated. It was found that the current situation in the economy of Ukraine is characterized by not very high activity of innovation, which is caused primarily by the deficiency of own funds of enterprises and limited budget funding. The ways of transition of the national economy, in particular of domestic enterprises to the model of sustainable development are suggested

Capability of Higher Education in Overcoming Digital Inequality in the Conditions of the Crisis in Ukraine

The purpose of the article is to assess the gap between people’s readiness for effective activity in the digital economy and to identify the functional capabilities of universities to reduce this gap. The research used methods of generalizations, logical, systematic, and comparative analysis, and statistical-economic, sociological, and economic-mathematical methods and techniques. The results of the study showed that the digitalization of the economy, the state, and society, which is taking place in Ukraine, requires a significant increase in the level of society’s readiness for digital changes. For effective integration into the digital environment, in particular in the field of education, it is necessary to create a digital infrastructure that meets EU standards. The authors conducted a study of the development of the digital inclusive component of the regions of Ukraine.Proposed ways of digital development of society. In particular, it has been proven that promoting the development of the provision of educational services improves the digital literacy of the population for daily tasks and for employers to minimize the gaps between the digital environment and people’s skills. It is substantiated that the acquisition of new digital skills and competencies of employees requires the development of training networks and the improvement of foreign language knowledge, both for young people and for other generations