Determining the priority sources for attracting deposits in the formation of the financial potential of banks

Iryna Hubarieva,Olesіa Lebid,Oleksandra Zuieva

doi:10.21511/bbs.12(3-1).2017.06

Abstract

The attraction of deposits by the banks in Ukraine is the basis for the formation of their resource base, which is an essential component of the banking financial potential. A qualitative formation of the bank’s resource base is carried out through proper management of attracting deposits in terms of their selection and giving preferences to specific sources of resource allocation. That is why the determination of priorities in attracting resources by banks and the formation of appropriate tools is an important tactical task in ensuring the stability of the Ukrainian banking system. The problem of new approaches to the management of deposits was especially acute during the crisis and the reduction of confidence of the population of Ukraine in the banking system, which makes actual the topic of the article and determines the importance of solving the tasks set in it. The goal of the paper is to develop tools for determining priorities of the main sources of attracting deposits by banks taking into account the system of criteria as a prerequisite for optimizing deposit portfolios of banks and the basis for the formation of their financial potential. The article proposes a sequence of stages and the corresponding tools that ensure the determination of priorities of different sources for attracting deposit funds of banks taking into account the criteria of time, minimization of costs and risks, balanced state of terms and volumes, equilibrium of costs and risks, ensuring a qualitative formation and effective use of the financial potential of the bank, ensuring a certain level of development of the bank. The use of the proposed approach made it possible to obtain such estimates that reflect priorities according to the criteria of minimization and equilibrium of risks and costs, a balanced state of terms and volumes and ensuring a specified level of the bank’s development, making it possible to determine the priorities of the main sources of attraction of financial resources for five banks in Ukraine.

Highlights

The events of the last five years in the socio-economic life of Ukraine inecluding crisis-proof reforming of the banking system and liquidation of a significant number of banks caused the outflow of financial resources from banking institutions and a sharp decline in the population’s trust towards them
The review and optimization of the process of management of the attraction of financial resources by banks, in particular of deposits as the main component of banks’ resource potential, is a prerequisite for the full recovery of the banks’ activity and lending to the real sector of the Ukrainian economy, which determines the urgency of the issues highlighted in this article
The conducted analysis of scientific works shows It is clear that in order to achieve the maximum that the issue of formation of a deposit portfolio result, the structure of the bank’s deposit portwas studied separately from the issue of formation folio should be close to optimal, that is, it should of financial potential of banks, the task of select- be formed on the basis of the data of the solved ing the most appropriate and necessary sources of optimality task taking into account the relevant attraction of deposits from the point of view of de- criteria and existing restrictions

Summary

INTRODUCTION

The events of the last five years in the socio-economic life of Ukraine inecluding crisis-proof reforming of the banking system and liquidation of a significant number of banks caused the outflow of financial resources from banking institutions and a sharp decline in the population’s trust towards them. The review and optimization of the process of management of the attraction of financial resources by banks, in particular of deposits as the main component of banks’ resource potential, is a prerequisite for the full recovery of the banks’ activity and lending to the real sector of the Ukrainian economy, which determines the urgency of the issues highlighted in this article. The conducted analysis of scientific works shows It is clear that in order to achieve the maximum that the issue of formation of a deposit portfolio result, the structure of the bank’s deposit portwas studied separately from the issue of formation folio should be close to optimal, that is, it should of financial potential of banks, the task of select- be formed on the basis of the data of the solved ing the most appropriate and necessary sources of optimality task taking into account the relevant attraction of deposits from the point of view of de- criteria and existing restrictions.

RESULTS

Analysis of compliance of deposit

Findings

CONCLUSION