Abstract
The article addresses the issue of various factors and threats impacting the operations of banking institutions, particularly their financial security. Through the application of correlation analysis, the macroeconomic determinants of banking system functioning and national economy are identified. The authors of the article formulate research objectives aimed at a comprehensive analysis of investments in innovation by commercial banks and their impact on the development of banking institutions. The main material reveals the composition and characteristics of non-material assets of commercial banks, which are considered as investments in innovation. The authors propose an algorithm for evaluating the level of innovation-investment security of banking institutions, which includes investment analysis and determination of security type. The toolkit of economic-mathematical modeling is utilized to establish dependencies between investments in innovation and banking activities' outcomes. Using the example of two banks - "PrivatBank" and "Lviv", the dynamics of investments in innovation and their impact on security are analyzed. The article examines the dynamics of innovation investments in two banks, PJSC CB "PrivatBank" and PJSC CB "Lviv", during the period from 2015 to 2022. Various econometric models are applied to study the relationship between investments and various financial indicators. According to the analysis, innovation investments in the bank "Lviv" increased by 31,62 times over the analyzed period, compared to the base year 2015. Compared to "PrivatBank", the growth of such investments was 7,74 times. Calculations also showed that the growth rate of innovation-investment resources of PJSC CB "Lviv" significantly exceeds the growth rates of such resources of PrivatBank. Regression models were used to study the relationship between investments and financial results of the banks. It was found that the size of investments in innovation plays an important role in increasing the bank's assets and capital, and may also affect its profit and profitability. The analysis also showed that the excess level of innovation investments in PJSC CB "Lviv" compared to PrivatBank is 4 times. The conclusions of the article confirm the importance of investments in innovation to support the dynamic development of the banking system.
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