Influence of the monetary policy of the NBU on the activity of banking institutions in Ukraine during the war

Abstract

The article examines the influence of the monetary policy of the National Bank of Ukraine on the functioning of the banking sector during the war caused by Russian aggression. The monetary instruments used by the NBU to support financial stability, including raising the discount rate, open market operations, and maintaining bank liquidity, are considered. It analyses how the measures of the National Bank of Ukraine contributed to keeping the banking system stable, ensuring access to loans, and controlling inflationary processes in financial and market instability conditions. The dynamics of foreign reserves and monetary interventions of the National Bank of Ukraine in the foreign exchange market after the start of the war are studied.The role of international support and cooperation of the NBU with other financial institutions to ensure macroeconomic stability in the country is studied. It has been proven that despite the challenges of the war, the banking sector of Ukraine remained functional, and monetary measures contributed to the minimisation of economic risks and the stabilisation of the banking system in general