Monetary Policy of The National Bank of Ukraine ‎UnderFinancial Destabilization ‎and Its Impact on The Banking System

  • Authors

    • Mykhailo Krupka Ivan Franko National University of Lviv, Lviv, Ukraine
    • Bohdana Vyshyvana Ivan Franko National University of Lviv, Lviv, Ukraine
    • Liubov Syniavska Lviv National Environmental University, Lviv, Ukraine
    • Vasyl Synenko Ivan Franko National University of Lviv, Lviv, Ukraine
    • Andriy Kotur Ivan Franko National University of Lviv, Lviv, Ukraine
    • Tetiana Pysarenko Lutsk National Technical University, Lutsk, Ukraine
    https://doi.org/10.14419/v055fk66

    Received date: June 3, 2025

    Accepted date: July 4, 2025

    Published date: July 14, 2025

  • Banking Regulation; Financial Instability; Foreign Exchange Interventions; Key Policy Rate; Monetary Instruments; Monetary Policy

  • Abstract

    The purpose of this article is to assess the effectiveness of the monetary policy implemented by the National Bank of Ukraine amid financial ‎destabilization caused by war. The analysis focuses on the impact of key regulatory instruments on the banking sector and explores the ‎adaptability of monetary measures in crisis conditions. This study aims to assess the effectiveness of the monetary policy of the ‎National Bank of Ukraine (NBU) under conditions of financial destabilization and to analyze its impact on the activities of commercial ‎banks to identify key regulatory instruments, their consequences for the banking sector, and prospects for further adaptation. The study ‎examines the specific features of the NBU’s monetary policy in ensuring macroeconomic stability and supporting the banking sector amid ‎financial destabilization. This study evaluates the NBU’s core tools, including the key policy rate, foreign exchange interventions, and li-‎liquidity management mechanisms, to determine their outcomes for financial stability. Special attention is given to the sharp increase of the ‎key policy rate to 25% in 2022, which aimed to contain inflationary pressures and currency volatility. The dynamics of foreign exchange ‎interventions, which shifted from reserve accumulation to large-scale sales exceeding USD 35 billion in 2024, are examined to highlight ‎vulnerabilities in the external balance. The findings demonstrate that while strict liquidity controls helped stabilize macroeconomic indicators, ‎they simultaneously limited credit access and constrained economic recovery. The results underscore the importance of maintaining a balance between inflation control, exchange rate stability, and support for the banking system. In the long term, the effectiveness of monetary ‎policy will depend on the NBU’s capacity to adapt its instruments to evolving macroeconomic challenges without undermining financial ‎sector resilience‎.

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  • How to Cite

    Krupka, M., Vyshyvana , B. ., Syniavska , L. ., Synenko , V. ., Kotur , A. ., & Pysarenko , T. . (2025). Monetary Policy of The National Bank of Ukraine ‎UnderFinancial Destabilization ‎and Its Impact on The Banking System. International Journal of Accounting and Economics Studies, 12(3), 37-43. https://doi.org/10.14419/v055fk66