Aloshyna I. International competitiveness of the banking sector under European integration processes.

The comprehensive research into theoretical and practical aspects of improving international competitiveness of the countries' banking sector in the conditions of European integration development was conducted using the interdisciplinary approach to the study of modern processes. A methodology of the system analysis for factors of international competitiveness in the banking sector and criteria for their evaluation were developed. This research focuses on the features of competitiveness of the banking sector in the conditions of European financial integration. The study identifies factors for improving the international competitiveness of the Eurozone banking sector and generalizes regulatory methods for competitiveness. Consolidation processes helped create additional liquidity and thereby ensure the financial stability of the region during the crisis period, while maintaining the competitiveness of the Euro zone banking sector at a significant level. Using the correlation-regression analysis of data from 20 European countries with a bank-oriented financial system it was confirmed that the decisive factors in ensuring the international competitiveness of the banking sector were the level of financial globalization of the country, the fulfilment of the Basel 2 and Basel 3 conditions by the banking sector, and limited concentration in the banking sector (1500≤HHI˂2500). Methodical approaches to determine the impact of the international environment on the competitiveness of the Ukrainian banking sector and to estimate its parameters are justified, threats and opportunities, as well as strengths and weaknesses are identified, and factors of strengthening of the international competitiveness of the banking sector of Ukraine are revealed. The ways of improving the competition policy of the banking sector of Ukraine should lie in the following plane: deepening the level of financial globalization by improving the qualitative and quantitative indicators of the financial system integration; improving the banking sector indicators through increasing the share of regulatory capital, decreasing the concentration of the 5 largest banks, observing the conditions of restrictive competition in the banking sector, decreasing the share of non-performing loans.