Activities Of Banking Institutions Research Articles

The procedure for implementing the compliance system in the bank

In today's conditions of globalization and increased competition in the financial sector, the introduction of a compliance system in the bank is becoming an extremely urgent task. As banking institutions are leading participants in the financial system, their stability is important for the economy of the state. The activities of banking institutions are aimed at preventing financial crimes, such as money laundering and terrorist financing, through compliance, which consists in checking customers, monitoring financial transactions and identifying suspicious transactions, preventing crises and financial failures. With the growing requirements of regulatory authorities, as well as taking into account potential financial risks and threats from unscrupulous customers or criminal groups, banks need to improve their risk management system and ensure compliance of all operations with legislation and standards. This creates the need to develop and implement an effective compliance system that ensures compliance with all legal and ethical norms in the bank's financial activities. In this context, the study and analysis of the process of implementation of the compliance system becomes an important task that requires careful research and determination of the optimal course of action to achieve successful results in ensuring internal control and compliance in the bank. The compliance system, or internal control, is defined as a set of procedures, policies, and standards that are aimed at ensuring the fulfillment of all internal and legal requirements in the bank, as well as at identifying, evaluating, and managing various risks associated with the bank's activities. In this scientific study, we will consider the process of implementing a compliance system in a bank in the context of regulatory requirements and international standards, as well as investigate the practical aspects of its implementation, including the structure of the compliance team, monitoring and reporting tools, as well as the impact of the compliance system on the bank's business strategy and reputation. Our study will emphasize the importance of properly organizing the process of implementing the compliance system to ensure customer trust and maintain the bank's stability in the modern financial environment.

DEVELOPMENT OF DIGITAL MARKETING OF BANKING INSTITUTIONS

The article draws attention to the issues of development of the system of digital banking services in Ukraine, in particular in terms of marketing and direct promotion of digital services of banking institutions. Therefore, the purpose of the study is to improve the methodological and applied principles and provisions for the promotion of digital banking services of banking institutions. It is shown that new economic conditions and realities have increased competition in the banking sector, which, in turn, prompts banking institutions to search for new sources of efficiency and intensify their own development through better promotion of banking services through new sales channels. One of these directions is, firstly, the marketing itself, and, secondly, the provision of digital banking services. It has been established that the development of digital marketing of banking institutions is due in equal measure to two trends: the digital transformation of the economy and society, and, therefore, the increase in the level of demand of consumers of banking products for their service online and/or with the use of the Internet; the development of digital networks and communications, and, therefore, a significant expansion of technical, technological and even economic opportunities for the implementation of digital technologies in the activities of banking institutions. The stages of the development process of digital technologies in the activities of banking institutions were identified, which went through 5 evolutionary stages - from the appearance of digital channels to the creation of "digital DNA" - a new system of coordinates for making strategic decisions throughout the entire life cycle of the operation and development of a banking institution. The leading directions and advantages of implementing the tasks of the digital marketing strategy of banking institutions have been determined, which are: modernization of the communication system with clients, significant growth of opportunities in the volume of communications and in the subjects of "communication"; a significant increase in the capabilities of the information and analytical subsystem of marketing, which is the way to make more reasonable and reliable management decisions in the field of marketing management; increasing the economic efficiency of the provision of banking services, increasing their scale and efficiency both vertically and horizontally in the business technological process; expansion of opportunities for the implementation of image programs, increasing the level of customer loyalty and their trust in the bank and its banking services. The leading directions of the development of digital marketing of banking institutions are indicated, which define the corporatization of digital systems of business communications and the provision of banking services, the use of digital marketing opportunities to increase the volume of provision of basic and additional services on the Internet, the spread of digital marketing to the intrabank management system, its automation.

Countering Cybercrime Under Martial Law

To date, it is impossible to imagine your life without all kinds of gadgets, the Internet and social networks. The active using of social networks has long been carried out by all state bodies in order to cause confidence of the population to their actions, to see feedback in the format of comments, as well as to show people all topical processes. It is also important to note that Ukraine is an advanced state in the field of electronic document circulation, and therefore almost all processes, starting from the activities of banking institutions and ending with the activity of air and railway transport are carried out by automated electronic systems. Accordingly, the coordinated and uninterrupted functioning of all of the above is due to the stability of cyberspace. In connection with Russia’s attack the information space became the second battlefield. Cyberattacks and official state sites hacking was immediately started, there were active attempts to abduct electronic data of banking institutions and private enterprises. The relevance of this article is determined by it, because a detailed analysis of the characteristic features of cybercrime, the search for methods and mechanisms of countering cybercrime in the conditions of war are the primary tasks and contribution to victory. The purpose of the article is to analyze the current state of countering cybercrime and varieties of cybercrime, to identify features and characteristics of cybercrime, as well as to make proposals for improving the current legislation in this area. The study used the following methods: analysis and synthesis, legal, static, systemic and formal-legal methods, method of interpretation of law. The conclusions, which we will make, can be a basis for further improvement of legislation, research and discussions between theorists and practitioners.

Activities of banks on the DGB market

The article focuses attention on the study of securities placed exclusively on domestic capital markets and highlights the role and importance of banks in this case First, the work analyzed the essence of the functioning of domestic government bonds. DGB belongs to debt securities that are sold to primary dealers and their clients on the primary market to finance the needs of the state budget. The work specifies the requirements for banks that can be primary dealers and the rating of domestic banks-primary dealers. A survey of domestic government bonds market was carried out, which are in circulation at nominal and amortized cost by owners, and it was found that during the last 5 years, banks occupied one of the leading places in the structure of their owners. It was revealed that the share of DGB in the total assets of domestic banking institutions is at a sufficiently high level, which is due to the significant reliability of these securities. The activities of securities traders - banks with the largest volume of completed and concluded exchange contracts with the DGB on the stock and over-the-counter markets in 2020 - are highlighted, and the banks that occupy the leading positions according to the indicated indicators are identified. However, the war introduced changes оn the activity of the domestic financial market, which were reflected in the activities of banking institutions and the functioning of the DGB, in particular, auctions for the sale of military bonds were launched.

Personnel management system in the activities of banking institutions

Personnel management system in the activities of banking institutions

Current state and ways to improve the efficiency of investment activities of domestic banks

Subject of research is the current state of activity of domestic banks of Ukraine and ways of their effective investment activities. The purpose of the article is to study and characterize the ways of effective management of the bank's investment strategy. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general science, special methods of scientific knowledge and other research methods. Study results. Credit institutions in world practice are a significant segment of the investment market and play a significant role in this process. One of the components of effective management of a modern banking institution is the implementation of effective investment activities, which requires the selection of an effective investment strategy. The imbalance of domestic banking processes, as shown by domestic and international practice, is often the main prerequisite for the development of a crisis situation in an individual bank, is a threat to the stable development of the banking sector as a whole. One of the main problems in the functioning of domestic commercial banks is the instability of the economic situation in the country, namely declining GDP growth, inflation and devaluation of the national currency, which in turn led to the outflow of bank deposits, bankruptcy of many commercial banks in Ukraine. Covid-19. Over the past year, Ukrainian commercial banks have allocated about 17% of total bank assets to invest in securities. For many years, there has been a negative decline in the share of the banking sector in investing in securities, but there has been an increase in total assets of banks in Ukraine. In addition, the positive point is the increase in the share of investments in securities in the total assets of banks over the past two years, namely from 13.97% in 2020 to 16.88% in 2021. The strategy of the bank's investment activity is an integral interconnected structured complex (system) of consecutive actions (balanced management decisions) under resource constraints, which is aimed at forming long-term effective investment activities of the bank, strengthening the bank's competitive position in the investment market. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, in the activities of banking institutions, as well as in higher education institutions in teaching economic disciplines. Conclusions. Thus, there is an extremely high degree of risk in the activities of commercial banks, and managerial errors can lead to the most serious consequences - so effective management for commercial banks becomes especially important. However, the key components of the theory of banking management are still poorly implemented in the practice of most domestic commercial banks. This also applies to the aspect of this theory, which is related to the management of the investment banking portfolio. Thus, the adaptation of the theory of investment portfolio management of commercial banks to the specifics of the Ukrainian economy is an unalterable necessity.

SECURITY MANAGEMENT OF UKRAINIAN BANKS

The purpose of the study is the current state and trends in the development of the banking system of Ukraine. The main problems of functioning of banking institutions at the present stage of reforming the state economy were revealed. The essence and content of the category of banking security is analyzed, the role and importance of guaranteeing the safety of banks in the system of financial security of the state is shown. The main threats and risks to banking security in general are described, the principles of improving the level of banking security are outlined. The category of banking security is characterized by: the state of security of banking activities and resources of a financial institution, the ability to develop effectively in the strategic dimension, the ability to withstand threats, protect the economic interests of participants and the ability to increase the overall financial and economic potential. Methodology. Improvement of the mechanism of banking security is the implementation of measures at the level of the bank and the banking system as a whole. The measures include: improving regulatory support, bringing activities closer to international standards of banking services, introduction of conceptual approaches to strategic management of banks' financial security, improving the quality of corporate governance and bank management, etc. Results. To ensure the sustainable development of the national financial system, it is necessary to "improve" the management systems of banks, ensuring full economic protection from external and internal factors, which is one of the main directions of state policy in the field of economic security. Value/originality. Ensuring stability of the banking system, prevention of systemic banking crises is the most important task of authorized government bodies in the field of financial sector regulation. Considering the notion of banking supervision, it can be noted that "banking supervision" is a monitoring system consisting of state, international, inter-bank, intrabank, intra-bank supervision in the form of preliminary, introductory and current supervision from the establishment until liquidation of a bank or its subdivisions. It should be noted that banking supervision is a systemic system that comprises several closely intertwined elements. The components of banking supervision are control proper, which boils down to study or observation of compliance with legislation in the activities of banking institutions, as well as active actions by the National Bank of Ukraine to apply appropriate enforcement measures. The mechanism for ensuring the smooth functioning of the country's banking system is a set of tools used by government agencies and providing for regulatory and supervisory measures.

THE IMPACT OF THE COVID-19 PANDEMIC ON THE BANK'S LENDING AND INVESTMENT ACTIVITY IN UKRAINE

The paper deals with the theoretical, regulatory framework for the implementation of lending and investment activities of banks in Ukraine, in particular in the economic downturn caused by the COVID-19 pandemic. The purpose of the article is to reveal the features of bank lending and investing in 2019-2021 and to identify the impact of the COVID-19 pandemic on the implementation of lending and investment activities of banks in Ukraine. The authors' approach to determining the essence of lending and investment activities of banks is substantiated. An assessment of banks' lending and investment activities in 2019-2021 has shown, that 60% of banks' loan and investment portfolios are formed from loans and 40% from investments. The main share of banks credit agreements volume is occupied by loans granted to economic entities; the bank portfolios of securities are formed mainly of profitable and low-risk government bonds. Unprecedented restrictive measures imposed to overcome the pandemic have had an impact on the activities of banking institutions, including reduced income of potential borrowers and their ability to service debt, as well as the problems for banks that have not introduced remote customer service. Analysis of the dynamics and structure of the credit and investment portfolio of Ukrainian banks, investments in investment securities, and long-term investments made it possible to identify the main trends in lending and investment activities of banks in Ukraine. Potential directions of regulatory policy implementation on the banking sector in the context of overcoming the negative consequences of the pandemic should be aimed at creating equal and transparent rules of the game between traditional and new financial service providers. The authors focus the attention on opportunities for the development of lending and investment activities of banks that emerged in the financial market of Ukraine during 2020-2021. Most of these capabilities involve providing simple, intuitive, personalized services across digital platforms with an appropriate level of cybersecurity.

CONCEPTUAL BASES FOR THE RESEARCH OF THE PROCESS OF EVALUATING THE EFFECTIVENESS OF THE BANK’S ACTIVITIES

An analysis of the factors of economic growth that determine the development of the banking sector and the banking industry. The main factors of economic growth include financial, human and information technology resources. The basis of information and technological support of banks are the processes of digitalization. Methods and models for solving structured, poorly structured and unstructured problems that have the necessary mathematical tools are analyzed for sound analysis and evaluation of the efficiency of banks. The article proposes a conceptual model for evaluating the efficiency of the bank, which is based on the use of fuzzy logic tools, and allows the analysis of production (operational), financial, economic and management subsystems of the bank and form an integrated indicator of efficiency of the banking system. The model of assessing the efficiency of the bank is based on the method of assessing the competitive status of the enterprise in the market, modified taking into account approaches to assessing the financial condition. The developed conceptual model for evaluating the effectiveness of banks can be used to improve decision-making systems used in the activities of banking institutions. Implementation of the conceptual model in each bank will allow at the system level to conduct model experiments to assess the effectiveness of the bank’s operation and development, develop practical recommendations and ways to improve the efficiency of Ukrainian banks, take into account the introduction of banking services to provide customers with banking services.

Шляхи покращення взаємодії банків та фінтех-компаній в Україні на основі зарубіжного досвіду

The article is aimed at distinguishing the main advantages of partnership between banking institutions and fintech companies and highlight the main ways to improve such interaction. Recently, the number of banks cooperating with fintech startups has been constantly increasing. An important role here was played by the introduction of modern financial technologies, which contributed to the transition of banks to the digitalization of activities. The article proposes a conceptual scheme of innovative interaction between banks and fintech companies. The purpose of this interaction is the introduction of innovative financial instruments, which will improve the quantitative and qualitative composition of banking services and provide commercial banks with competitive advantages. The main advantages of integration of banking institutions and fintech companies are distinguished, including: comfort of receiving banking services; acceleration of work speed; expansion of activities without increasing the network of branches; gradual transition from offline banking to Internet and mobile banking; reducing the bank’s expenses and increasing its economic efficiency; increase in sales; income growth; complex competitive advantages in the long run. Emphasis is placed on the fact that the result of cooperation between banks and fintech startups is to create new products and services or products and services with updated characteristics, which are represented by: innovative programs and projects; novel intellectual products; modern new technological equipment and processes; new approaches to the development and formation of the market of modern banking products and services. On the basis of foreign experience, the main innovative financial instruments in the directions of fintech have been summarized, the introduction of which into the activities of domestic banks will allow banking institutions to reach a higher level of competitiveness in the world financial markets. Prospects for further research are to distinguish the major reasons that hinder the effective implementation of digitalization trends in the activities of banking institutions.

Стратегічні напрями розвитку банківської діяльності України

Abstract. Introduction. The article is devoted to the analysis of banking activity of Ukraine and tendencies of development, search of perspective directions of development of branch. It has been proved that the successful development and reliability of the banking system in a market economy largely depends on the results of statistical analysis in banks, which allows to identify their weaknesses and strengths, to identify specific ways to solve problems. Purpose. The purpose of the article is economic and statistical analysis of the current state of the banking system of Ukraine, development of theoretical and methodological principles and practical recommendations for statistical analysis of banks, identifying key factors and trends and finding promising areas for further development of banking. Results. The essence, theoretical preconditions and methodological bases of the statistical analysis of activity of banks are considered; modern approaches to statistical analysis of banking activity are analyzed; conceptual bases of the complex analysis of banks are developed; a system of indicators of banks' activity was formed on the basis of open and accessible statistical information; long-term forecasts of the development of the banking system of Ukraine were made. The analysis of the main indicators of the activity of banking institutions of Ukraine confirmed the presence of crisis phenomena in banking activity. It is proved that the efficiency of the banking system of Ukraine depends on a number of such factors: the level of development of the financial market; the current level of confidence of economic entities in the central bank; macroeconomic situation both inside the country and abroad; political factors; level of monopolization and shadowing of the economy. The low probability coefficient of the forecast model indicates a significant influence of political factors on the state of banking in Ukraine. The main problems of the industry are: huge outflows of funds from deposit bank accounts and reduction of bank resources, including by reducing revenue from all types of services; accumulation of significant volumes of problem loans in the structure of the loan portfolio due to the growth of debt on loans to individuals, businesses and non-bank financial institutions; increase in costs of banks and increase in unprofitable activities of banking institutions in general; exacerbation of the problem of insufficient level of capitalization of banks, exacerbation of the situation regarding compliance with the statutory and regulatory capital of banks; declining confidence in the banking system; political and economic instability in Ukraine, etc. Conclusions. Improving the state of the industry is possible through: improving the investment climate in the country as a whole; determination of priorities of economic development; improving the welfare of the population and strengthening corporate finance; increasing the level of monetization of the economy; increasing the resource potential of the banking system; ensuring the long-term and availability of credit resources; increasing the transparency of commercial banks, etc.

Introduction of NSFR Ratio in the Activities of Commercial Banks in Ukraine

The main purpose of the research is to study changes in the methodology of formation and regulation of liquidity of commercial banks in Ukraine, as well as to study changes in the structure of bank assets that will result from the use of new approaches. For data collection, the following analysis methods were adopted: a semantic analysis of the traditional and new approach to determining the regulatory liquidity ratio, structural and dynamic analysis of assets and income of commercial banks, as well as a method of logical generalization in drawing conclusions about the analysis. The results of the research show that the introduction of new approaches to determining the liquidity of commercial banks on the basis of the Basel III agreement requires banking institutions to increase the general requirement for the principles of formation of their assets. There is also an objective need to develop new approaches to ensure the proper effectiveness of current liquidity control and ensure the stability of cash flows as well as an overall reduction in banking risks. Based on the analysis of the banking system of Ukraine, it is established that the introduction of the NSFR ratio instead of the regulatory ratio N6 provides for commercial banks a general reduction of the risk of banking operations and helps to expand sources of financing active operations. The study found that one of the key consequences of the introduction of the NSFR ratio in the activities of banking institutions in Ukraine will be a decrease in their net interest margin in lending operations. As a result, commercial banks will be forced to limit lending activities mainly by limiting the issuance of riskier loans. However, another consequence of the use of the NSFR standard will be the differentiation of active operations of banks, which will reduce the dependence of their operating activities purely on lending, which will also result in an overall increase in the financial stability of banking institutions.

Формування корпоративної соціальної відповідальності банківського сектору в період пандемії

Abstract. Introduction. In the context of the pandemic and as a result of the financial crisis, an increasing number of people began to urgently demand support from both the state and companies engaged in socially responsible activities. Enterprises, realizing their responsibility to the population, began to create new areas of activity related to corporate social responsibility in order to smooth out the negative impact of the pandemic on people's lives. Unfortunately, the increase in the level of corporate social responsibility in the context of the pandemic was uneven. Purpose. The main purpose of the study is to examines the essence of Corporate Social Responsibility and its development in the banking sector of Ukraine during the pandemic. Results. The directions of corporate social responsibility of the banking sector of Ukraine is carried out is analyzed. The levels of responsibility in terms of banks attitude to the implementation of Corporate Social Responsibility directions are presented on the basis of Carroll's model. Integration of Corporate Social Responsibility initiatives into the activities of banking institutions is defined. The role of the National Bank of Ukraine and other financial market regulators in overcoming the consequences of the financial crisis is defined. Conclusions. In these realities, the manifestation of corporate social responsibility on the part of banking institutions, firstly, showed the readiness or unwillingness of banks to adapt to important conditions, and secondly, the effectiveness and relevance of their Corporate Social Responsibility areas. The Corporate Social Responsibility Institute plays an important role in the corporate culture of banking institutions in the current situation, as it is this system that has shown the role of companies responsibility, both to stakeholders and to the entire community as a whole.

КІБЕРШАХРАЙСТВА, ФІНАНСОВІ ПРАВОПОРУШЕННЯ ТА ЛЕГАЛІЗАЦІЯ КРИМІНАЛЬНИХ ДОХОДІВ В УМОВАХ ЦИФРОВІЗАЦІЇ ЕКОНОМІКИ УКРАЇНИ

Digitalization of the economy is identified as one of the leading and priority fields of Ukraine's development. The complexity and development of new information technologies leads to the development of new methods and approaches to economic and financial activities. But despite the significant useful effects of digitalization, preferable conditions are also created for criminals. It is becoming easier to launder money, commit fraud with financial instruments and create new opportunities for cybercriminals. These processes lead to a detailed analysis of the determinants of criminal activity that has the greatest impact on the economy. The simulation identifies trends in the relationship of cybercrime, financial offenses and money laundering with generalized characteristics of fintech development, the number of reports of suspicious transactions submitted to the SCF and the level of development of key areas of financial activity: banks, insurance companies and stock exchanges. The study identified the direction and extent of the impact of digitalization, financial monitoring and activities of banking institutions, stock exchanges, insurance companies on the number of financial and cybercrimes and money laundering. MAR-spline models of interdependence between regressors and regressions were built. The adequacy of the constructed models is checked and confirmed. The advantage of MAR-spline models determines the possibility of calculating the limit values of factor features. The presence of the influence of factor features is traced either only until the achievement of certain threshold values or only when these threshold values are exceeded. Some factor characteristics had a multiplier effect on the resulting offenses. The practical application of the FinTech spline model of the interdependence of innovation and financial and cybercrime through financial institutions will benefit both financial intermediaries and users of the financial system, as well as government regulators and supervisors. Such a model can be useful and interesting to international organizations, investors and developers of regulatory standards, banking institutions, and other scientists conducting research in this area.

ПРОБЛЕМИ ФОРМУВАННЯ ФІНАНСОВИХ РЕСУРСІВ БАНКІВСЬКОЇ СИСТЕМИ УКРАЇНИ В УМОВАХ ФІНАНСОВОЇ НЕСТАБІЛЬНОСТІ

The aim of the study is to highlight theoretical approaches to the essence of financial resources of banking institutions, disclosure of their role and significance, analysis and evaluation of current trends and features of the formation of financial resources of the banking system of Ukraine. The article examines the concept of financial resources of the banking system of Ukraine, their importance and features of the formation of financial instability in modern conditions, their role in managing the resources of banks. It is shown that financial resources play a decisive role in the activities of banking institutions, because the success of banking activities and the development of the banking system of Ukraine as a whole depend on their condition. The difference between the concepts of “bank resources”, “financial resources of the bank” and “resource base of the bank” is studied and the own definition of “financial resources of the bank” is given both at the micro and macro level. The dynamics of financial resources of Ukrainian banks in 2016-2019 and their individual components are analyzed in detail. Much attention is paid to the analysis of the dynamics of the structure of liabilities of banking institutions of Ukraine, as well as indicators of the level of capitalization of domestic banks. The peculiarities of using the financial resources of the banking system of Ukraine are singled out, in particular the problems of resuming lending by banking institutions to the real sector of the economy, increasing the duration of long-term loans, investing in government securities (IGLBs and NBU certificates of deposit), insufficient capitalization of the banking system. The main directions of improving the formation of financial resources of Ukrainian banks are proposed.

OPTIMIZATION OF BANK CONSUMER LENDING MANAGEMENT ON THE BASIS OF QUALITY ASSESSMENT OF ITS LOAN PORTFOLIO

Introduction. Ukrainian banking institutions are constantly faced with the problem of non-repayment of consumer loans received by individuals. The reasons for this need to be identified, classified and assessed, which is primarily the object of credit risk management of banking institutions. The lack of effective methods for assessing and managing risks in the provision of consumer loans can ultimately lead to significant problems in the efficient operation and financial stability of banks. Despite the existing scientific and practical achievements, the issue of assessment and management of consumer lending risks remains underdeveloped, their implementation in the activities of banking institutions is quite theoretically loaded, which causes problems in real life. The purpose of the article is to assess the current state of bank consumer lending in Ukraine and develop recommendations for optimizing the management of the loan portfolio of individuals in banking institutions. Results. An analysis of the current state of lending to individuals in Ukraine by banking institutions has been done. The dynamics of consumer lending was assessed in terms of loans to individuals and businesses, the volume of loans and reserves for active operations. The methodological approach to the calculation of the integrated ratio is proposed to assess the quality of the loan portfolio of individuals, which is based on the qualimetric method, where each class of credit debt is assigned a corresponding rank value. The condition of the loan portfolio of Ukrainian banks was assessed according to the proposed qualimetric ratio. The distribution of commercial banks by the share of the loan portfolio of individuals and the qualimetric ratio is given. The average value of the qualimetric coefficient for the debt of individuals throughout the banking system is calculated and analyzed. It is proved that the use of the proposed qualimetric quality factor of the loan portfolio of individuals allows to conduct a static assessment of its condition within the above ranges, and monitor its dynamics during monitoring. The recommendations for the active use of credit risk management methods in lending to individuals have been developed based on the proposed methodological approach. Key words: banks, consumer lending, credit risk, risk management, risk assessment.

Аналіз стану ринку банківських послуг України в умовах пандемії

Introduction. In the current global crisis, the spread of globalization, unstable economy in the country, the emergence of threats related to the spread of the COVID-19 pandemic and the introduction of quarantine in the country, it is necessary to analyze their impact on banking institutions in Ukraine and accordingly to the national security of Ukraine. Purpose. The main purpose of the study is to analyze the current state of the banking services market of Ukraine during a pandemic and to develop practical recommendations for its further development. Results. The state of the Ukrainian market of banking services in the conditions of a pandemic is analyzed. The dynamics of operating banks in Ukraine is studied. The TOP-10 banking institutions according to the stability rating and the leaders of the people's rating of banking institutions are presented. It is noted that in modern conditions, the activities of banking institutions are extremely strongly influenced by external factors. The dynamics of gross domestic product volumes is considered. The dynamics of the discount rate of the National Bank of Ukraine is studied. The analysis of indicators of return on assets and capital of the banking system in Ukraine as a whole is carried out. Examples of adaptive solutions of banking institutions in Ukraine during a pandemic are given. It is noted that due to the introduction of quarantine in Ukraine, citizens began to actively and effectively use Internet technology to address their own issues and meet needs, thus accelerating the transition to the digital age. Conclusions. We are convinced that the introduction of adaptive measures of banking institutions in the context of the COVID-19 pandemic for other banks will help to minimize the negative consequences and possible risks associated with such exposure. Thanks to timely decisions on the functioning of banking institutions, re-planning, changing approaches to customer service, banking institutions were able to adapt to the conditions caused by the pandemic, and reduce possible risks, losses and threats to their activities and generally positively affect the economy.

Development of Bank Innovations

Global financial crises were experienced in recent years. The bank industry became the most sensitive field regarding the financial crisis. Because the risk are associated to all banking operation regardless the crisis, therefore the financial risk management should take place daily in financial institutions. As a result the main objective of all bank are: to reduce the risk level during the crisis and to remain the residual risk after the crises period. The successful function of the national economy depends on the financial and credit policy of the country. Banks are the country's financial and credit system. The activities of banking institutions are very diverse in the economy. The bank is a division that produces and sells its products and deals with issues related to social needs. The bank is made on the basis of the profit received in the form of the socio-economic interests of the owners of the bank and its participants. Banks are especially dependent on the economic development of the national economy, ensuring economic growth in the country, determining the well-being of people, raising their standard of living and improving. Much depends on banking in modern conditions. Today, the banking system in our country offers an almost complete list of products that already exist in developed countries. One of the most important services is the service of plastic cards. The latter depends on the economic activities of banks.

COMPETITIVENESS OF BANKS IN THE MODERN CONDITIONS OF FINANCIAL MARKET DEVELOPMENT

The article carries out the comparative analysis of the basic approaches to the choice of competitive strategies of banks. The aim of the paper is to substantiation of theoretical and methodical principles of banks' competitiveness in the current conditions of financial market development.The factors that affect the level of competitiveness of banks are determined. The authors of the article classifies them into factors that cause structural imbalances in the economy, factors of macroeconomic and microeconomic functioning of banks.Competitiveness of banks can not be considered without the competitiveness of their products and services. Between them there is a close relationship, they determine the development of each other.The authors of the article prove that banking competition differs from classical competition between commodity producers. These differences are: the object of banking competition is not goods, but the resources that the bank generates to carry out active operations; in banking market, banks can act as a seller, not only the buyer; the implementation of banking services may be carried out within the bank without the involvement of external sales channels; the situation of competition arises not only between banking institutions, it is also connected with the activities of non-banking financial institutions; the activities of banking institutions are strictly regulated by the National Bank of Ukraine. Modern conditions of functioning of the banking market testify to the necessity of development and introduction of strategic management of bank competitiveness, development of new methods of formation and implementation of competitive advantages and strategies. Development strategies need to be developed taking into account uncertainty, they should be as flexible as possible and provide for the possibility of realizing banking risks. Thus, it can be construed that the current state of development of banking business is accompanied by crises occurring both in the economic and financial spheres of the country; therefore, ensuring the competitiveness of banks must first of all be based on the development of effective, convincing messages for investors, clients and employees. The main actions of banks that make it possible to present their competitiveness should be this: ensuring financially sustainable development; the protection of the existing own banking business is the elaboration of a contingency plan; work on the prospect.

Strategy and Tactics of Bank Capital Assessment

Purpose: The article deals with the the development of strategic and tactical measures aimed at an effective estimate of banking institutions’ capital volume by using a selective model. The result of evaluation from the capital factor is important for banking institutions, because it allows to determine more qualitatively the risk of bankruptcy. Design/Methodology/Approach: Strategies and tactics developed by evaluation using a selective model are important for a qualitative assessment of the banking institutions’ capital. The strategic direction of research for the purpose of monitoring the implementation of the program by the Central Bank for the commercial banks is to offer selective model that contains the ratio of liquidity, risk, relative and absolute levels of equity, the reliability of the bank and the extent of the bank information technology equipment. Findings: A link reliability values of parameters of the banking institutions with the calculated values of the bank capital factor, namely the banks analyzed by the criterion of the probability of bankruptcy and situational correction bank financial policy is found to carry out an accurate assessment of the bank capital. Practical Implications: The results can be incorporated into the activities of banking institutions with the aim of strengthening the position of financial stability and the reliability of the bank institution. Originality/Value: The main contribution of this study is that the timely action taken as a result of the settlement of the developed selective model will reduce the number of bankruptcies which will have a positive impact on the economy in general and on the functioning of the banking institutions in particular.