摘要：The article considers the issues on banking competition interaction, the banking system's stability and efficiency. This research aims to conduct a comprehensive assessment of the banking competition that consists of structural and non-structural methods under the institutional changes' impact. The paper presents how this influences the banking system of Ukraine through its reformation in the banking competition level and how it interacts with indicators of stability and efficiency of the banks. In this study's frame, the authors applied a developed approach to the modified model of Panzar-Rosse regarding the banking activity in Ukraine after it has been rebooted and «cleansed of». The systematization of the scientific background and approaches to assessing the level of banking competition in Ukraine noted that, generally, native authors used only one of the methods to assess the level of competition in the banking industry of Ukraine. Besides, their studies focused on the pre-crisis period, when these innovations hadn't significantly affected the banks' activity changes. The importance of solving this scientific problem is identifying problems in the banking system and taking measures to eliminate them, using the comprehensive assessment of the banking competition level, considering the explanatory indicators of the banks' stability. This issue became critical after a significant reduction in the number of banking institutions in Ukraine and the change in the institutional structure of the banking system of Ukraine under the influence of financial innovations. The study into assessing the level of competition in the banking market of Ukraine is carried out in the following logical sequence: 1) considering the studies on the given subject; 2) describing the existing methods for assessing competition in the banking industry; 3) describing the proposed modified methods of the assessing the level of banking competition; 4) providing proposals regarding the improving banking competition in Ukraine. The study's period is 2015-2019. The research object is the banking system of Ukraine. The article presents an empirical analysis of the current level of competition in the banking market of Ukraine. The findings showed that the banking sector of Ukraine is characterized by monopolistic competition, which is characterized by increasing concentration in the market of the state-owned banks. The study empirically confirms and theoretically proves that some Ukrainian banks have increased their market share due to a decrease in the number of banks in recent years due to the influence of digital transformation. The results of this study could be beneficial for the use of proposed innovative approaches to assessing the level of banking competition in Ukraine in the future, for the bank owners (including small ones), also on proposals for the perspective development of neo-banks in Ukraine, in which there is a need not only for the banking system but also for the users of banking services.
