In 2014–2016, Ukraine’s banking sector was affected by what has proven to be the most serious crisis in its modern history. Almost half of the banks went bankrupt and the losses incurred by the state and banking sector clients was in excess of US$ 20 billion. With considerable support and under major pressure from the West, Ukraine’s government has managed to stabilise the situation in the sector. Despite tangible improvement, it is too early to determine whether the reform programme has been successfully implemented and if the improvement is sustainable. The crisis has made it necessary for major changes to be implemented in the functioning and structure of the banking sector. These changes have far-reaching consequences not only for Ukraine’s economy, but also for its political system.