In this article we analyze specific origin of business models in Ukrainian banking system over the period of 2014-2017. Using K-mean clustering techniques five basic business models were identified due to the combination of bank asset items and liabilities sources, retail and corporate focus, equity to assets ratio which appears to be abnormally high for frozen banks. We produced migration matrix for business models from the start of systemic crisis in 2014 till recovery in 2017. We analyzed

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... defined strategies have affected risk and efficiency of Ukrainian banking system under systemic instability. The results of the study contribute to a deeper understanding of riskiness of business models through different periods of financial cycle. Retail and particularly "non-scheme" corporate bank business models were the most sustainable compared with "retail funding to corporate lending" type of banks. Our results enable to develop more efficient macroprudential tools grounded on heterogeneity of bank business strategies.