THEORETICAL FUNDAMENTALS OF BANKING CAPITAL FORMATION

Abstract

Introduction. Banks are an important component of the country's economy. Thanks to banks there is an accumulation, storage, redistribution of funds between participants of market relations. The efficiency of banks depends on the formation and use of bank capital. Bank capital is of local, regional and national importance – it ensures the profitability of an individual bank, affects the development of the region and the investment attractiveness of the country. The purpose of the research is to develop a theoretical and methodological basis for assessing the bank's capital, taking into account the impact of trends in an unstable economy. Results. The expediency of taking into account the issue of bank capital valuation in the bank's activity is substantiated. The essence of bank capital is determined. The authorized, regulatory and prescribed types of bank capital are described. The structure and functions (protective, ensuring the operational activities of the bank, regulatory) of bank capital are defined. The influence of factors on the amount of bank capital is substantiated. The standards by which the capital adequacy of banks is checked are described. The main approaches to the implementation of the mechanism of banks' equity formation are outlined. Theoretical and methodological approaches to the assessment of bank capital are generalized, the method of calculation is outlined, their conditions of use, shortcomings and information source are highlighted. The connection between the assessment of bank capital and the implementation of the process of its formation is substantiated. The scientific and methodological basis for such an assessment is described. The need to improve the methodological tools for assessing the bank's capital has been proved. Conclusions. The existing organizational and methodological support for the assessment of bank capital does not fully meet current trends and needs some improvement. Objectivity in the assessment of bank capital is an important element in the process of bank capital formation. Adaptation of international experience in the assessment of the bank's capital will contribute to the development of the domestic financial market as a whole. Key words: bank, bank capital, estimation, formation of bank capital, bank equity, principles, methods.