The author analyzes the processes occurring in the banking sector of Ukraine from the standpoint of "non-economic" policy, the theory of which is currently being discussed in modern economics. According to the author, the impact of such a policy does not allow Ukraine to find the optimal strategy for its development, in particular regarding the regulation in the banking sector. One of the reasons for this is the shortage of public administration, which is generally characteristic of countries with economies in transition.
It is proved that the NBU's "settlement" of the banking market after 2014 was extremely unsuccessful from an economic point of view. Quantitative estimates of losses suffered by the Ukrainian economy as a result of the campaign to clean up the banking sector during 2014-2016 are presented and analyzed. Through the prism of the typology of "non-economic" policy, the author considers the processes of demonetization of Ukraine's economy and current problems of the national stock market.
It is determined that during the reforms in the banking sector, the adoption by the ruling elite, as well as the by the judiciary, of a series of uncalculated and unconsidered decisions poorly consistent with Ukraine’s specific features led to destructive consequences, which affect the long-term development of the country's economy. In addition to economic losses (more than 10 billion USD) and the planting of a ticking bomb under the future lending, the "bankfall" brought about social damage, which is the loss, by the most active segment of the population, of the confidence in the economic strategy proposed by government officials.
In recent years, after the crisis of 2014, no banking institutions have been registered, while the number of banks’ separate branches is rapidly declining, along with the corresponding number of jobs.
The author concludes that the current practice of selling liquidation assets of bankrupt banks will have a long-term negative effect, because it benefited bad creditors who bought their overdue debt at a discount through third parties, while the most active part of the population (depositors "200+" and small and medium businesses) suffered losses and lost confidence in banks.
It is noted that the main reason for Ukraine to choose the "non-economic" policy is the separation of the management decisions from real socio-economic needs. As a result, the economic decisions initiated in this area not only cause material damage, but also hinder this country’s civilizational advancement.
The publication is prepared within the research project on "Ensuring the effectiveness of monetary policy in Ukraine in the conditions of global economic destabilization" (state registration No 0121U000024).

Keywords:economy, economic policy, neoliberal model of economy, "non-economic" policy, international financial institutions, economic reforms

Starting with the global pandemic crisis, whose consequences included the disruption of logistics chains and the suspension in a number of economic sectors, the world economy is experiencing increasingly large losses. Full-scale Russian aggression against Ukraine and the imposition of sanctions against the Russian Federation by many countries have made the global economy even more unstable and problematic. Macroeconomic problems are accumulating in the world, which will be a long term trend.
The article deals with Ukraine’s domestic financial and monetary sphere since the beginning of Russian aggression in 2014 and in the context of the post-pandemic global crisis. In the first months of the war, Ukraine – being a small open commodity based economy –managed to maintain the stability of money circulation and prevented panic in the financial markets, in contrast to 1998, 2008 and 2014.
The full-scale war continued the economic crisis initiated by the COVID-19 pandemic. The interaction of the two crises deepens imbalances in both the global and Ukrainian economic and financial systems. As manifestations of the crisis, the article examines the disrupted supply chains of goods and raw materials, and the negative impact on the companies’ solvency due to reduced demand. On the other hand, with their financial injections, the governments prevent the rapid bankruptcy of unviable firms in order to preserve employment, which exposes the economy to new risks.
The article outlines expected developments in Ukraine’s financial system due to long war and the ensuing macroeconomic losses and uncertainty. Recommendations are given on urgent measures to support the banking sector in order to increase its liquidity and solvency under the conditions shaped in 2022.
The authors note that in the fight against inflation, it is necessary to take into account the increased energy prices, the disrupted logistics chains for commodity producers, the decreased export revenue, and the increased prices for critical imported goods. Anti-inflationary measures under such conditions could lead to stagnation and phase out domestic production.

Keywords:monetary policy, exchange rate policy, economic reforms