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Modern State and Prospects of Development of the Network of Banks Branches in Ukraine


  • Cherniavskii Ihor B.

    () (Ukrainian Academy of Banking of the National Bank of Ukraine)


The article studies the current state of the network of banks branches in Ukraine, identifies main reasons of reduction of the number of branches and branch departments, and identifies positive and negative consequences of this reduction for various subjects. Thus, in the course of recent years the banking system of Ukraine shows gradual reduction of branches and branch departments. Moreover, the number of bank departments reduces faster than the number of bank branches, taking also into account the fact that it is quite popular to transform banks branches into departments on a non-balance basis. In this event the main reasons of reduction of the network of banks branches are the following: tendency to reduce costs and increase the level of profitability of the banking activity, transfer to the remote servicing of clients, which does not require availability of a significant number of structural subdivisions of banks in the territory of the whole country and others. The author formulates consequences of reduction of the number of banks branches and departments with respect to three groups of subjects - for the banks themselves, for the banks' clients and for the banks' employees. It should be noted that the process of reduction of the network of banks branches is important and required today, but it brings negative consequences for some of the subjects. The author studies prospects of development of the network of banks branches in Ukraine and underlines the problem of transition of banks to remote servicing of clients. In particular, remote servicing of clients is popular today in the banking practice of developed countries, which requires mandatory introduction of their experience into the domestic practice.

Suggested Citation

  • Cherniavskii Ihor B., 2014. "Modern State and Prospects of Development of the Network of Banks Branches in Ukraine," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 3, pages 359-364.
  • Handle: RePEc:idp:bizinf:y:2014:i:3:p:359_364

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    References listed on IDEAS

    1. Asli Demirgüç-Kunt & Enrica Detragiache, 1998. "The Determinants of Banking Crises in Developing and Developed Countries," IMF Staff Papers, Palgrave Macmillan, vol. 45(1), pages 81-109, March.
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