PECULIARITIES OF THE INFLUENCE OF GLOBALIZATION AND DIGITALIZATION ON THE BANKING SYSTEM

The development of the banking sector is one of the important conditions for ensuring the sustainability of the economy, a factor of successful economic development and increasing the country's investment attractiveness. In recent years, banking activities under the influence of globalization and digitalization have been undergoing transformation due to the expansion and complication of banking products and services, the emergence of digital banks, the growth of competition between financial institutions and fintech companies, the increase in the volume of the financial market, the growth in the number of banking risks, the need to improve the quality of regulation and supervision, the need to develop common mechanisms for the transformation of both individual banks and the banking system as a whole, and others. All this leads to changes in approaches to the functioning of the banking sector. Previously traditional characteristics applicable to banking activities are being replaced by new ones due 
to the ongoing structural changes and the emergence of innovations, which contributes to the transformation of banks. Taking into account modern trends, the factors and mechanisms of formation of a competitive banking system should be determined, which in the conditions of transformation will allow the banking sector to strengthen its positions in the financial market.