: 22-33
Lviv Polytechnic National University
Lviv Polytechnic National University

Purpose. The purpose of the paper is to characterize the structural changes in the financial services market caused by war and identify the main trends and mechanisms for ensuring the stability of the market under martial law in Ukraine.

Design/methodology/approach. We used the data from the financial market regulators to analyze the impact of a full-scale invasion on financial institutions’ activity and operations as well as to compare the contemporary trends in different sectors of the financial market in Ukraine.

Findings. Our research examines the financial landscape in 2022, revealing a marked decline in the presence of financial intermediaries, notably in insurance companies and credit unions. Concurrently, there has been a substantial reduction in the number of bank branches. The sharp decline in the number of financial institutions can be attributed to multiple factors, including some institutions operated in regions occupied by Russia, preventing continuity after the invasion, and others involved in high-risk activities facing NBU scrutiny revealing violations. The war intensified liquidity and solvency issues, with numerous failed institutions lacking a safety margin and unable to attract resources amid economic deterioration. Despite these structural shifts, the overall assets of financial institutions have not decreased. The analysis showed the redistribution of assets in favor of banks. The market share of financial companies and pension funds experienced a slight decrease, with insurers and credit unions facing more significant losses.

Practical implications. The high level of digitalisation of financial services in Ukraine allowed for ensuring an adequate level of access to financial services in the first months of the war when it was critical to maintaining customer confidence in the financial sector. Accordingly, further digitisation of financial transactions and improvement of regulatory approaches to the use of digital financial instruments can be seen as priority areas for the development of Ukraine’s financia sector.

Originality/value. The research is an attempt to assess the extent of the impact of critically negative external factors on the financial sector in Ukraine, in particular, to identify structural changes caused by the war. Prospects for further research are related to the study of the medium- and longterm aspects of this impact

1. Boubaker, S., Goodell, J. W., Pandey, D. K., & Kumari, V. (2022). Heterogeneous impacts of wars on global equity markets: Evidence from the invasion of Ukraine. Finance Research Letters, 48. DOI:10.1016/

2. Boubaker, S., Nguyen, N., Trinh, V. Q., & Vu, T. (2023). Market reaction to the russian – ukrainian war: A global analysis of the banking industry. Review of Accounting and Finance, 22(1), 123–153. DOI: 10.1108/RAF-10-2022-0294

3. Chowdhury, E. K., & Humaira, U. (2023). The Russia–Ukraine conflict and investor psychology in financial markets. Economic Affairs, 43(3), 388–405.

4. Diaconaşu, D. E., Mehdian, S. M., & Stoica, O. (2023). The reaction of financial markets to Russia’s invasion of Ukraine: evidence from gold, oil, bitcoin, and major stock markets. Applied Economics Letters, 30(19), 2792–2796.

5. Dinh, V., Le, D., Duong, D., & Pham, D. (2023). Determinants affecting digital financial consumer protection: Evidence from 135 countries. Journal of Economic Asymmetries, 27. DOI:10.1016/j.jeca.2023.e00301

6. Izzeldin, M., Muradoğlu, Y. G., Pappas, V., Petropoulou, A., & Sivaprasad, S. (2023). The impact of the russian-ukrainian war on global financial markets. International Review of Financial Analysis, 87. DOI:10.1016/j.irfa.2023.102598

7. Hasan, F., Al-Okaily, M., Choudhury, T., & Kayani, U. (2023). A comparative analysis between FinTech and traditional stock markets: Using Russia and Ukraine war data. Electronic Commerce Research, 1–26.

8. Kumari, V., Kumar, G., & Pandey, D. K. (2023). Are the European Union stock markets vulnerable to the Russia–Ukraine war? Journal of Behavioral and Experimental Finance, 37, 100793.

9. Mirza, N., Umar, M., Afzal, A., & Firdousi, S. F. (2023). The role of fintech in promoting green finance, and profitability: Evidence from the banking sector in the eurozone. Economic Analysis and Policy, 78, 33–40. DOI:10.1016/j.eap.2023.02.001 

10. Pardal, P., Dias, R. T., Teixeira, N., & Horta, N. R. (2023). The Effects of Russia's 2022 Invasion of Ukraine on Global Markets: An Analysis of Particular Capital and Foreign Exchange Markets. In Handbook of Research on Acceleration Programs for SMEs (pp. 262–280). IGI Global.

11. The strategy of the National Bank until 2025 (discontinued in 2023). National Bank of Ukraine. Retrieved 17 Nov 2023 from

12. Financial Stability Report. December 2022. National Bank of Ukraine. Retrieved 17 Nov 2023.

13. Inflation Report, April 2023. National Bank of Ukraine. Retrieved 17 Nov 2023

14. Supervisory Data. National Bank of Ukraine. Retrieved 17 Nov 2023

15. Nguyen, T. A. N. (2022). Does financial knowledge matter in using fintech services? evidence from an emerging economy. Sustainability (Switzerland), 14(9). DOI:10.3390/su14095083

16. Schilling, L., & Seuring, S. (2023). Mobile financial service-enabled micro-businesses driving sustainable value creation in emerging markets. Technological Forecasting and Social Change, 192. DOI:10.1016/j.techfore.2023.122596

17. Shkolnyk, I., Frolov, S., Orlov, V., Datsenko, V., & Kozmenko, Y. (2022). The impact of financial digitalization on ensuring the economic security of a country at war: New measurement vectors. Investment Management and Financial Innovations, 19(3), 119–138. DOI: 10.21511/imfi.19(3).2022.11

18. Taera, E. G., Setiawan, B., Saleem, A., Wahyuni, A. S., Chang, D. K., Nathan, R. J., & Lakner, Z. (2023). The impact of COVID-19 and Russia – Ukraine war on the financial asset volatility: Evidence from equity, cryptocurrency and alternative assets. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100116.

19. Tello-Gamarra, J., Campos-Teixeira, D., Longaray, A. A., Reis, J., & Hernani-Merino, M. (2022). Fintechs and institutions: A systematic literature review and future research agenda. Journal of Theoretical and Applied Elec- tronic Commerce Research, 17(2), 722–750. DOI: 10.3390/jtaer17020038

20. Ukrainian Fintech Catalog 2021. Ukrainian Association of Fintech and Innovation Companies Retrieved 17 Nov 2023 from

21. Ukrainian Fintech Catalog 2022. Ukrainian Association of Fintech and Innovation Companies Retrieved 17 Nov 2023 from