FINANCIAL CRISIS: THE NEW STAGE OF INTERACTION BETWEEN BANKS AND INSURANCE

Recently, Ukrainian financial market has been marked by a rapid development. Many global trends have manifested in Ukrainian financial market as well. One of such trends was an interaction between banks and insurance companies. The financial crisis resulted in certain changes in the financial institutions ’ activity all over the world, defining a new milestone of interaction between banks and insurance companies. The aim of the paper is to define the steps, that must be taken in field of interaction between banks and insurance companies in order to survive the crisis. Present conditions, previous events and theoretical studies helped us to get some results. Banks and insurance companies have faced certain challenges that resulted in the necessity to overview their approaches of alliances ’ formation and partnership establishment, to work out a new policy for advancing effectiveness and resisting unfavourable internal and external factors. Present financial market condition enables evaluation of taken measures efficiency and elaboration of new recommendations for improvement of the current situation in the context of an effective interaction between banks and insurance companies from the perspective of supervisors and companies themselves. It was defined that it is necessary to make improvements to the law base, business processes and implement mutual stability monitoring in banks and insurance companies. Synergy of these institutions and world experience with a consideration of local financial market may solve major challenges for banks and insurance companies during crisis