Abstract
The approaches to understanding of the concept of "bank finances" are considered in the article The financial resources as a material representation of the bank's finances, which are part of the bank's resources, are created through the mobilization of funds of economic entities through borrowing, transformed by amounts, terms and risks in accordance with the parameters of placement in the bank's assets by their adaptation, and equity (made by shareholders, created as a result of activities and accumulated as a result of the revaluation of assets), the usage of them in the future may lead to an increase of economic benefits of the bank .The links between the key properties of financial resources and the fundamental postulates of financial management of the bank are considered. The activity of the bank as a financial intermediary and a business entity was characterized.A detailed analysis of the external and internal economic relations in the sphere of the bank's finances has been carried out in terms of the formation of bank management mechanisms. To the internal totality of economic relations in the field of bank finances were determined the shareholders of the bank, the bank staff, elements of the financial structure of the bank and elements of the structure of the banking group, financial and industrial group. It was determined that external economic relations are formed due to business partners, subjects of state regulation, subjects of banking regulation and supervision, clients, etc. The possible influence of external and internal economic relations on the achievement of the objectives of strategic financial management, providing the desired level of competitiveness and financial stability is considered.An important element of the financial performance of the bank is the consideration of their principles. It is determined that the principles of finance of the bank should be divided into general (economic independence, self-financing, material interest and responsibility) and specific (increase transparency of financial performance, self-regulation, provision of financial reserves). As a result of this research, the definition of the concept of "bank finances" has been improved and an object field of financial management of the bank has been formed.
Highlights
Under today’s conditions, the functioning of the Ukrainian banking system, which takes place in a context of complex political, social and macroeconomic changes, of greater importance is the scientific approach to effectively building the system of strategic management of the bank finances in order to balance the interests of key stakeholders and ensuring, on this basis, sustainable development of banks in the long run.Permanent crisis phenomena in the banking system of Ukraine, the growth of the number of banks that are considered insolvent and liquidated, confirm the fact that their management of finances is imperfect, conceptual foundations and tools of management, in particular, strategic one, need further improvement both in terms of methodology and practical implementation
Having summarized the above, we have improved the notion of bank finances, which should be understood as a set of external and internal economic relations regarding the formation, distribution and use of financial resources of the bank, which is expected to lead to an increase in the bank’s economic benefits in the future
In the most general terms, the objects of management of the bank finances are relations arising in the process of organization of business processes and operations that form and distribute financial resources, regulate financial risks and liquidity, determine financial results, profitability and efficiency of the bank activity, that is, management of finances covers the whole set of forms and methods of organizing financial relations in a bank
Summary
Under today’s conditions, the functioning of the Ukrainian banking system, which takes place in a context of complex political, social and macroeconomic changes, of greater importance is the scientific approach to effectively building the system of strategic management of the bank finances in order to balance the interests of key stakeholders (state, owners, managers, customers, employees) and ensuring, on this basis, sustainable development of banks in the long run. Bank finances as economic relations related to the formation of financial resources (shareholders’ equity and liabilities), the receipt of income and the implementation of the costs of banks are determined by S. O. Bezrodna defines the notion as a special, specific form of economic relations, carried out through the circulation of money (monetary relations), resulting in the formation, distribution and use of the funds necessary for entrepreneurship, which is a form of movement of financial resources of the bank [10]. Zyatkovsky, the bank finances are an objective reality that manifests itself in financial relations between banks and state and non-state institutions, legal entities and persons in relation to the organization of the formation, distribution and use of financial resources in the process of reproduction [6].
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