This article studies the impact of the COVID-19 pandemic on the processes of innovative development and digital transformation of the banking sector. The authors analyze the COVID-19 pandemic as a factor in accelerating the introduction of innovative digital banking technologies. The key changes that took place in the banking sector under the influence of the coronavirus pandemic were considered, which allowed to identify main vectors of digitalization of banking processes in Ukraine and to develop criteria for classifying banks according to their digital development.

With the beginning of hostilities on the territory of Ukraine on February 2022, the domestic banking system has undergone considerable turmoil and it functions in a stress mode and uncertainty. At the same time, banks continue their activities, try to fulfill all their obligations and adhere to regulations. However, certain transformations take place in the banking sector. The banking system quickly adjusts to functioning under martial law. The specified circumstances led to changes in the banking infrastructure, influenced the current trends of the banking market and accelerated the pace of digitization of banking processes. The aim of the article is to study the functioning of the domestic banking system under martial law. Methods of theoretical generalization, analysis and synthesis, grouping, and system approach were used in the paper. The features of the domestic banking system and the functioning of banks under martial law were considered. The changes that took place in the structure of the banking sector and banking infrastructure under martial law were determined. The key trends of the banking market during the period of martial law were studied. The authors identified digitization features of the banks under current conditions and defined the key principles and instruments of financial support of the banks by the regulator. Conclusions: the country's banking system operates stable and ensures continuous work of financial institutions through the coordinated actions of the regulator and the banks under martial law. There are no significant changes in the structure of the banking market, but the infrastructure of banks has been transformed under martial law. In addition, the current trends of the banking market demonstrate the presence of obvious difficulties in the work of banks due to the influence of martial law. Despite the war risks, the banks have a sufficiently high level of liquidity, which allows ensuring the further continuous implementation of non-cash payments and other obligations.

Due to the total digitization of banking processes and operations, foreign and domestic banks are actively transforming their activities from the traditional format of customer service in bank branches to the remote format of providing services online. Banks strive to function in the format of financial assistants available 24 hours a day. Therefore, virtual banks or neobanks which carry out their activities exclusively through remote sales channels with the help of Internet banking tools and mobile applications are actively developing. The aim of the article is to study foreign trends in the development of neobanks and prospects for the development of neobanking in Ukraine. The methods of theoretical generalization, analysis and synthesis, grouping, and systematic approach were used in the research process. The key trends in the development of neobanks in Ukraine and the world have been studied. The foreign experience of the licensing mechanism of neobanks is considered. The dynamics of the number of neobanks in the world and their geographical affiliation are analyzed. The global trend of growth in the number of clients-users of neobanks is indicated. The peculiarities of the activity of domestic neobanks have been studied. The general problems and prospects for the development of neobanks in Ukraine have been identified. Neobanking in the world is in great demand by consumers of financial services and is interesting for investors, so the number of neobanks and their users in the world is growing at a high rate. The domestic banking sector is gradually introducing and implementing innovations in accordance with global trends in the development of banking services. Domestic neobanking gained a particularly noticeable development during the coronavirus pandemic and in the conditions of martial law. Due to the lack of a legislative initiative regarding the licensing and regulation of the activity of neobanks in Ukraine, their potential development is restrained. Currently, the development of domestic neobanks directly depends on state support for their activities, internal regulatory policy and competitive environment.

Systemically important banks (SIB) play an important role in stability of the domestic banking and financial system since their activities significantly affect the country's financial system and the economy as a whole. Domestic banking system constantly functions in a mode of stress and uncertainty In conditions of war, therefore the National Bank of Ukraine pays special attention to the activities of systemically important institutions. Ensuring the proper functioning of SIB depends on the level of their capitalization, which is why the capitalization of systemically important banks is an extremely urgent issue today. The aim of the article is to determine the ability of SIB to meet capital adequacy requirements as a factor of ensuring the stability and reliability of the domestic banking system and its macroeconomic stress resistance under martial law. Methods of theoretical generalization, analysis and synthesis, grouping, system approach were used in the paper. The value of the capital standards of domestic SIB during the period of martial law was investigated, a comparative analysis of capitalization indicators of SIB of Ukraine with their normative and forecast values under basic and adverse macroeconomic scenarios was carried out according to the results of the NBU stress testing. Banks that show signs of an unfavorable macroeconomic scenario have been identified, and recommendations have been developed regarding the need to take additional measures to increase the stress resistance of banks. In conditions of war, the SIB of Ukraine fulfills the requirements regarding the target values of the capital standards and has a sufficient margin of safety due to the appropriate level of capitalization, although the implementation of the basic macroeconomic scenario turned out to be impossible, which caused lower than forecast capital indicators. Therefore, the regulator should pay additional attention to those banks that demonstrate negative trends for the implementation of an unfavorable macroeconomic scenario at this stage and prepare a set of measures for their recapitalization in advance.