STRATEGIC DEVELOPMENT OF THE BANK UNDER EFFECTIVE CORPORATE GOVERNANCE

Abstract

The development strategy is the conceptual basis of any business, which determines the priorities in the process of making key decisions to ensure the competitiveness of the organization. The development of common scientific approaches to the content and methodology of the development strategy of Ukrainian banks and its individual functional components is becoming more important in solving the problem of increasing the competitive potential of banking institutions compared to leading foreign banks and banks with foreign capital operating in Ukraine. Banks, in an effort to maximize their profits, may prefer speculative operations by placing their assets in high-risk instruments, which can lead to a loss of liquidity and solvency. This leads to an increase in the responsibility of the bank's management to determine the strategic goals of financial development of the institution, which should meet current trends in the level of competition in the banking services market in general and its individual segments in particular. Under these circumstances, the role and importance of theoretical and practical aspects of the formation of the bank's strategy, which determines the objectives of financial management and vectors of financial development. The theoretical principles of corporate culture and compliance of the organization were considered in the work. The strategic development of the banking institution under the conditions of forming an effective corporate policy was presented; the practice of applying effective risk management by banks of Ukraine in compliance with their internal compliance procedures has been studied. The article analyzes the procedure of observance of corporate culture by banks of Ukraine with the study of performance indicators and their impact on the overall riskiness of the bank. Ratings of domestic banks, their missions, slogans and key aspects of corporate culture in 2021 are presented. The stability of domestic banks is analyzed on the basis of asset quality assessment and stress testing conducted by the National Bank of Ukraine in 2021. The conclusions provide projected expectations of strategies for further development of public and private sector banks until 2024. The most profitable and unprofitable banks of Ukraine according to the results of 2021 are presented.