TRANSFORMATION OF THE BANKING SECTOR IN THE CONTEXT OF GLOBALIZATION CHALLENGES AND INVESTMENT PROCESSES IN UKRAINE

Abstract

Formulation of the problem. Modern changes in the banking sector of Ukraine determine its key role in maintaining financial stability and promoting sustainable economic development. Under the influence of globalization factors, the functions of banks as financial intermediaries and drivers of investment activity are radically changing. The purpose of the article is to analyze the transformations of the banking sector of Ukraine in the context of globalization challenges and assess its role in investment processes, determine the role of digital technologies and fintech innovations in the formation of financial stability and investment activity. The subject of the research is the processes of structural transformation of the banking sector, mechanisms for attracting financial resources, the participation of foreign capital and the role of banks in financing investment activity in Ukraine. Methods used in the research: a systemic approach to identify key transformation factors of the banking system; methods of comparative analysis to assess structural changes and dynamics of bank development indicators; statistical methods for analyzing capitalization, assets and loan portfolio; generalization and classification to form a conceptual model of bank participation in investment processes. The statement of basic materials. The article examines the gradual transformation of the banking sector of Ukraine, in particular the stages of formation, structural changes and consolidation, as well as the modern period of digitalization and fintech innovations. The impact of global financial crises and geoeconomic risks on the stability of banks, capitalization dynamics, asset concentration, and the participation of foreign capital is analyzed. Particular attention is paid to the relationship between the resource base of banks and lending investment processes, as well as the role of banks as catalysts of financial flows in the national economy. The practical significance of the results obtained lies in identifying ways to increase the financial stability of the banking sector and its effectiveness in the formation of long-term investment resources. It was found that modern banking models combine classical lending with investment activities, the use of digital channels and fintech innovations, which increases the efficiency of financial intermediation, while increasing the need for cyber risk management and technological resilience. Conclusions of the research. The evolution of the banking sector of Ukraine took place through successive transformation phases under the influence of global financial processes and the growing role of foreign capital. The current stage is characterized by the transition to a stabilization-adaptive model, where banks play the role of an instrument of macrofinancial stability and support for investment activity. Digitalization and fintech innovations increase the efficiency of financial intermediation, transform the structure of investment flows and create new risks, requiring the adaptation of prudential supervision. Further development of the sector depends on the ability to ensure financial stability, activate lending to the real sector and integrate into global markets.