MODERN DIRECTIONS OF DEVELOPMENT OF DOMESTIC BANKING OPERATIONS WITH SECURITIES

Abstract

The domestic securities market is in the process of reform, we also note that banks are lead-ing participants in this market. There are currently no well-defined types of securities bank-ing. During the study, we will highlight traditional and not traditional types of banking ser-vices in the securities market. We will also find an explanation for the constant increase in the volume of shares issued by banks, which made banks leaders in issuing shares among all functioning enterprises on the stock market. The purpose of the article is to analyze banking activ-ities in the securities market and specify priority activities in order to develop recommendations on the needs of the current financial situation. Methodology of research. Based on the analysis of sta-tistical data and the legislative framework on the activity of banks in the stock market, the state of their activity in this market was investigated and priority types of securities transac-tions were identified. Findings. The study found a general trend towards an increase in the volume of banking transactions with securities, but the portfolio structure is not weighted; DGDB (Domestic government debt bonds) and National bank of Ukraine deposit certifi-cates, which tend to grow, have a special demand among securities in banks' portfolios. In order to maintain a positive trend, and improve the quality of banks’ transactions with secu-rities, subsequent ways can be distinguished: development of the securities market, thanks to the improvement of the legislative framework and the development of regulators; introduc-tion of new financial instruments, in particular derivatives and green bonds; improved moni-toring of rating agencies (insufficient reliability of domestic rating agencies, namely, a natu-ral monopoly on evaluation; there is no clear system for the development and regulation of evaluation approaches etc.); development of investment operations of banks with securities by attracting foreign issuers in the portfolio of securities. Practical value. Using the results of the analysis in practice will allow focusing on the priority areas of the bank's activities in the securities market.