Commercial Banks In Ukraine Research Articles

РОЗВИТОК ТЕОРЕТИЧНИХ ЗАСАД СУТНОСТІ ФІНАНСОВОЇ БЕЗПЕКИ БАНКІВСЬКОЇ СИСТЕМИ

In the current economic environment, characterized by a high level of instability and risks, the issue of financial security of the banking system is of particular relevance. The banking sector, being a key element of the country’s financial system, plays a crucial role in ensuring economic growth and stability. Today, the Ukrainian banking system is going through rather difficult times, mainly due to military operations and political instability, which creates preconditions for new challenges and threats it has never faced before. All this indicates that now, more than ever, it is necessary to pay considerable attention to ensuring the sustainable functioning of the banking sector, as it is a key element in the formation and maintenance of the financial security of the state as a whole. The problem of ensuring the financial security of banks under martial law in Ukraine is a new area of research for the Ukrainian community of scholars. The current situation in the scientific support of the formation of the financial security system of commercial banks in Ukraine indicates conceptual miscalculations. The banking sector, which actually exists as a holistic phenomenon, does not have a complete adequate theoretical and methodological systemic reflection. There is also no full-fledged methodological framework for solving specific problems of protecting banking institutions. There is also a lack of research on clarifying basic concepts. For example, there is no scientifically based concept and mechanism for ensuring the financial security of banking activities, no systematic description of the types and content of threats to the financial security of banking institutions, no thorough description of financial regulators of the security and stability of the banking system. At the same time, a clear definition of the essence of the financial security of the banking system depends on: identifying and classifying threats; forming a system for ensuring the financial security of banking institutions; clarifying the place and role of various actors in this system; and a reasonable formulation of their tasks and functions. Therefore, the study of the theoretical foundations of the essence of financial security of banks is critical for the development of effective mechanisms for protection and management of all risks in the banking sector.

ФІНАНСОВИЙ ТА СТАТИСТИЧНИЙ АНАЛІЗ В УПРАВЛІННІ РИЗИКАМИ НА ФІНАНСОВОМУ РИНКУ У КОНТЕКСТІ ФОРМУВАННЯ «INDUSTRY 5.0»

One of the basic principles of the financial market is transparency, which is directly related to the reliability and accessibility of information held by financial market participants. Accordingly, in the context of ensuring the implementation of the "Industry 5.0" concept, the article considers the problems of information support for market participants and analytical procedures in the risk management system. It is noted that the functioning of the financial market of Ukraine today is taking place in conditions of uncertainty and high risks, and digitalization has a significant impact on the functioning of the financial market. The article aims to study the current features and functional load of financial and statistical analysis in financial market risk management and identify the problematic issues and prospects for overcoming them in the context of the formation of Industry 5.0. The article emphasizes the need to increase the level of financial and digital literacy of the population as a prerequisite for developing the financial market. It is established that applying an exclusively retrospective approach in the context of forming information support for managerial decision-making in the financial market is inappropriate. It is also noted that when making decisions by financial market participants, in addition to traditional financial analysis, it is necessary to analyze environmental and social information. This makes it expedient to disseminate ESG principles and standards in Ukraine. The leading place in the financial services market of Ukraine is occupied by banks. Over the past ten years, the number of commercial banks in Ukraine has decreased from 180 to 63, which in the context of the formation of Industry 5.0 can be seen as a consequence of optimizing the structure of the banking segment of the financial market. Financial analysis plays a significant role in managing risks in the financial market, the main information source for which is accounting information, primarily financial statements. Market participants based on information signals, which are a unique information source, make management decisions regarding a particular action in the financial market. The article considers the feedback and influence of information on the status of financial market participants on prices in the financial market and the influence of prices in the financial market on decision-making by various market participants. Prices are the main source of information for making important decisions, forecasting, etc. Areas for further research include scientific substantiation and methodological support of consulting activities in the field of information support of financial market participants.

Substantiation of the marketing policy of banks on the basis of statistical analysis of the payment card market

Substantiation of the marketing policy of banks on the basis of statistical analysis of the payment card market

FOREIGN EXPERIENCE OF PLACING FUNDS OF INDIVIDUALS AND LEGAL ENTITIES ON BANK DEPOSITS

The purpose. The work is dedicated to the analysis of the peculiarities of placing funds of individuals and legal entities on bank deposits in foreign countries in order to use the acquired results in domestic practice. Methods. In the process of writing the articlesuch methods as method of theoretical generalization, method of economic analysis withthe usage of a graphical method, as well as methods of comparison, systematization and logical generalizationwere used. TheResults.In thearticle the approaches to pricing of deposit products in commercial banks of foreign countries were decomposed by analyzing the dynamics of interest rates on deposits of individuals and legal entities during 2020-2021. The presence of both positive and negative interest rates on deposit products was defined. Thus, during the analyzed period, commercial banks of countries of the European Union offered legal entities to open accounts with a rate from -0.5% to 0.86%, and individuals – from -0.22% to 1.56%. The main types of deposit products offered by commercial banks for individuals were identified. Thus, the authors present and describe the following types of deposits: savings, term and indexed deposits, deposits opened remotely for individuals that are moving to the country for permanent residence or study, deposit products for customers of VIP segment, newborns, and deposit products with registration of the certificate of deposit. The peculiarities of taxation of deposits of individuals in the countries of the European Union were outlined and the absence of taxation of deposits in the Eastern countries was revealed. The current deposit insurance systems of individuals and legal entities in the countries of the European Union and in the United States of Americawere analyzed and a comparison with the existing domestic system was made. The practical significance. The results of the study of deposit activities of foreign commercial banks can be used by commercial banks of Ukraine in developing deposit products and improving existing deposit policy, as well as by scientists, specialists and graduates from higher education institutions in future research on deposit activities of commercial banks.

REALITIES AND EFFECTIVENESS OF THE UKRAINIAN BANKING SYSTEM

The paper deals with the analysis of the banking system of Ukraine. It is shown that for Ukraine the frequency and depth of crisis phenomena in the banking sector are exacerbated by the raw material orientation of the economy, underdeveloped domestic market and the circulation of foreign currency (dollarization of the economy). It should be noted that in the pre-crisis during 2006-2007, excessive mortgage lending created a "bubble" in the real estate market, which, comparing its devastating effects, corresponded to this phenomenon in the real estate market in the United States. Although the crisis of 2008-2009 demonstrated the vulnerability of the Ukrainian banking system to numerous economic and political upheavals, no significant changes in banking supervision took place to minimize systemic risks. Restoration of the banking system of Ukraine in 2015-2016 is generally in line with post-crisis trends to streamline the banking system and increase its efficiency in the world. At the same time, the weakness of the institutional environment makes it impossible to use both administrative tools and state development banks to increase productive lending in Ukraine. On the other hand, commercial banks will use refinancing loans instead of private-sector savings to lend. In this case, the probability of the need for financial support from banks increases, which will lead to a significant increase in public debt.Moreover, a system of vector autoregression models has been developed to research the impact of crisis periods on the performance of commercial banks in Ukraine. The simulation results (mainly the analysis of impulse response functions) allow concluding that interbank lending in post-crisis conditions recovers relatively rapidly (with a lag of two years). Lending to non-financial corporations and non-residents showed a decline and recovery only within four years after the crisis. Lending to the general government sector is growing every year, but at the same time loans to other resident sectors are declining. In addition, during the year after the crisis, the volume of deposits in the banking system is demonstrating a decrease. Other variables do not show any response to the crisis.

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.

Application of Clustering in the Dimensionality Reduction Algorithms for Separation of Financial Status of Commercial Banks in Ukraine

The issue of determining the financial condition of commercial banks and separating investment-attractive banks from problem banks on this ground is extremely important for developing countries. The aim of this study is to make sure on the example of Ukraine that commercial banks really form separate clusters, where more reliable, stable and efficient banks are well separable from less successful ones in this regard. The study used the t-SNE and UMAP dimensionality reduction algorithms, and the Ward's Agglomerative Hierarchical Clustering algorithm. The results of visual analysis of two-dimensional t-SNE projections show that banks of different degrees of risk are well separable and have their own specifics. Clustering in the UMAP algorithm allowed distinguishing clusters with banks of Class A,

ОСОБЛИВОСТІ РОЗВИТКУ БАНКІВ ЯК ПАРТНЕРІВ ФІНАНСОВО ТЕХНОЛОГІЧНИХ КОМПАНІЙ

The article analyzes cooperation between banks and financial technology companies. The advantages of using fintech are: speed and convenience, a large selection, more favorable conditions for services, more personalized products. The number of commercial banks in Ukraine in 2008–2022 was analyzed. In order to provide consumers with a variety of services, fintech needs to cooperate with banks. It was determined that the latter often have the ability to carry out certain operations that are not available to financial technology companies, for example, due to the lack of licenses. In particular, some payment services offer users the service of storing money in accounts. But in fact, these funds are stored in the bank, and the fintech service simply provides access to them. The advantages and disadvantages of financial technologies are substantiated. Here is a list of fintech companies and their hot and cold topics. The strengths and weaknesses of the fintech market in Ukraine are indicated. With the help of automated software services and the absence of costs for ensuring customer access to the banking institution, digital financial institutions have significant advantages compared to traditional banks, because their credit terms are much more interesting than those of classical banks. At the digital stage of development, the bank is no longer an intermediary, it becomes an agent that provides the client with access to accounts and operations. Communication with the banking institution is limited to the submission of appropriate commands executed in the digital technology system. The client becomes in a certain way independent, autonomous in relation to the bank. The possibility of conducting partnership relations between banks and fintech companies, and the possibility of conducting joint business without affecting the work of each, are substantiated. Among the "hot" topics, fintech providers identified: automation, electronic banking, biometric identification, machine learning and artificial intelligence, forecasting and modeling, smart contracts, chatbots, Big Data, blockchain, digitization of all registers, ISO, cyber security and safety payments, IT security, there is also an interest in open APIs.

СУЧАСНА ДЕПОЗИТНА ПОЛІТИКА БАНКІВ УКРАЇНИ ЯК СКЛАДОВА СИСТЕМИ УПРАВЛІННЯ ПАСИВАМИ

The resilience of the banking system during the war is largely determined by the availability of sufficient sources of funding – own, attracted and borrowed. One such source is bank deposits. The deposit policy of commercial banks in Ukraine has changed significantly in recent years, and banks today have ceased to depend on deposit sources, due to sufficient liquidity of banks due to cheap funds raised from the NBU as refinancing. The main differences in the deposit policy of banks in 2014–2019 and in 2020–2022 are summarized. There is a steady increase in deposits even in times of war, and demand deposits significantly outweigh time deposits, which is due to the desire of customers to have free access to their funds in conditions of uncertainty in the future. The general tendency to increase the deposit portfolio of banks is due to the restoration of confidence in the banking system, as well as the existence of the Deposit Guarantee Fund, which during martial law and three months after its termination will provide full compensation to depositors. Since 2020, we have seen a significant reduction in the level of deposit rates, which today don’t cover inflation. In addition, banks today have no economic reason to raise deposit rates, as the real economy has not had enough facilities to increase lending due to the crisis, the COVID-19 pandemic and especially the war. As an object for investment, deposits today compete with IGLBs, which have higher yields and are not taxed. Today, the main problems associated with attracting deposits in Ukraine are: uncertainty about the future, falling incomes, reduction of interest rates on bank deposits, high level of interest income taxation, significant amounts of cash in circulation, etc. Modernization of banks’ deposit policy should be based on constant analysis of the deposit market, adaptation to the conditions of its operation and the formation of adequate interest rates by banks in order to further invest in the real economy.

СТАН ТА ІНСТИТУЦІОНАЛЬНЕ ЗАБЕЗПЕЧЕННЯ СИСТЕМИ КРЕДИТУВАННЯ АГРАРНИХ ПІДПРИЄМСТВ УКРАЇНИ В УМОВАХ ІНКЛЮЗИВНОЇ ЕКОНОМІКИ

The article discloses the analytical aspects of the crediting and insurance system of agricultural enterprises and the development of proposals for the development of their institutional support in Ukraine. It was determined that credit and financial support under modern conditions plays the most important role in ensuring the development of agrarian business. Credit, as the main financial instrument, forms the prerequisites for business capitalization, stimulates the productivity of agricultural production and is reflected in its ability to implement technical and technological changes and ensure the production of competitive products. The loan can act as an effective tool for increasing the level of technical and technological development, implementation of innovative and technological programs and projects. The trends in the development of bank lending in the financial support of agricultural enterprises in Ukraine in 2015–2022 were considered. The average cost of loans from commercial banks of Ukraine and the volume of lending to agricultural enterprises were evaluated. The dynamics of the volume of concessional lending to agribusiness entities was determined. The shortcomings of the system of institutional support for financial and credit provision of domestic agrarian business have been identified, including the lack of equal access to the market of credit resources; increase in the value of credit resources; lack of effective organizational and economic mortgage lending; unsettledness and length of financial leasing registration procedures; an imperfect mechanism for insurance of borrowers' credit risks; low level of digitalization of insurance services. Prospective directions for improvement of financial and credit relations are substantiated, which are: financing of the chain of creation of agricultural and product value; innovative credit and agricultural scoring; creation and operation of digital credit platforms. It has been established that financial and technical startups that work on a digital basis, provide free access to credit resources and a quick automated assessment of the borrower's credit history appear as a promising direction for attracting temporarily free financial flows to agrarian business.

INTERNATIONAL FINANCIAL REPORTING STANDARDS AS A TOOL FOR REGULATORY SUPPORT OF OPERATIONS WITH THE LOAN PORTFOLIO OF UKRAINIAN BANKS

The article analyzes the problem of application of information-analytical and regulatory support of operations with the credit portfolio of the Bank, which is currently relevant and Central to successful lending, and therefore to ensure the return of loans and increase the profitability of credit operations. The necessity of forming an effective and efficient system of information-analytical and legal support of operations with the credit portfolio of commercial banks, the main tool of which is the international financial reporting standards, is revealed. It is determined that the requirements of the modern level of globalization are still ahead of the adoption of integration changes regarding the rules and principles of accounting and management accounting by commercial banks of Ukraine. A universal, effective and efficient system of legal regulation of operations with the credit portfolio of a commercial Bank is built on the basis of the study. It is proved that the regulation of operations with the credit portfolio of a commercial Bank can be schematically represented as a hierarchical scheme with 4 levels, where International accounting standards and International financial reporting standards represent the main first level. It was revealed that according to the international financial reporting standards, loans provided by banks belong to the category of financial assets, which are one of the types of financial instruments. The other three levels of the system of legal regulation of operations with the credit portfolio of a commercial Bank, which are derived from the first level, are analyzed. It is concluded that for a more effective organization of accounting it is necessary to harmonize the Ukrainian legislation in accordance with the requirements of International financial reporting standards, and therefore commercial banks with the help of such a system of analytical indicators will be able to constantly monitor changes in the economic system and respond in a timely manner by making appropriate adjustments in case of unsatisfactory developments

Overview of the current state of consumer lending in commercial banks of Ukraine and its organizational and economic support

The paper gives the theoretical basis of the peculiarities of the process of consumer lending in commercial banks – defines the economic essence of consumer credit, its objects, tools, stages of implementation and mechanisms for repayment of credit debt. An overview of the current state and development of bank consumer lending in Ukraine is presented. An analysis of the dynamics of assets and loan portfolio of Ukrainian banks, namely: analysis of loans to individuals and analysis of the volume and share of consumer loans in the total loans to individuals in the loan portfolio and assets of banks in 2015–2021. The peculiarities of the formation of the retail loan portfolio of Ukrainian banks are studied and the directions of improving the level of organizational and economic support of consumer lending of Ukrainian banks are outlined. A necessary condition for ensuring the stability of the banking system is the development of bank lending. Constant changes in the market of banking services and openness to the external environment require banks to constantly search for markets and lending mechanisms, including consumer credit. It is the development of consumer lending that determines the formation and increase of effective demand of the population, and thus the development of the economy as a whole. Therefore, the intensification of long-term bank lending available to borrowers is one of the most important tasks of Ukraine's strategic development. In recent years, there has been a growth trend in the consumer lending sector, which, on the one hand, has become an indicator of intensification of banks' lending, but on the other hand, rapid growth in retail lending has led to increased debt and unprofitable individual banks. Therefore, there is an objective need to increase the level of organizational and economic support for consumer lending to Ukrainian banks in order to avoid credit risk. An important way to increase the profitability of consumer lending is to improve the quality of loans. To this end, it is recommended to improve the work of the bank's departments for monitoring problem loans, the use of scoring systems, the introduction of insurance of financial risks of banks on card lending.

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.

Особливості формування банківського продукту в розрізі маркетингових інновацій

Abstract. Introduction. The article examines modern conceptual approaches to the features of the banking product in order to increase the competitiveness of modern commercial banks. New scientific approaches to bank management, as well as assessing the innovation of the banking product are considered. The factors of the growth of qualities and competitiveness of banking services are analyzed. It is also determined that if the Bank adheres to the concept of intensification of commercial efforts, then the main attention is paid to the implementation of measures to stimulate the sales of its product (that is, the provision of various services). The quality of banking products is difficult to evaluate, since the criteria used for such an analysis are difficult to assess. Among the criteria of quality of banking products distinguish speed and accuracy of service, unique product advantages, availability of additional services, etc. The banking service characterizes the level of competitiveness of the work of a commercial bank based on the determination of the peculiarities of pricing and the stages of sale of a banking product in the financial market. Purpose. The purpose of this study is to identify and create the necessary conditions for the adaptation of a banking innovative product to market requirements, increasing the competitiveness and profitability of the bank itself. Results. A banking product that is being implemented in the form of services, certain types of investments, exchange of capital and other operations, requires unambiguousity in its definitions, terminology needed to determine the volume of product, accounting and exchange between the participants of the banking process. In order to create a highly organized system of commercial banks in Ukraine, which is an integral part of a market mechanism in the country's economy, it is necessary to form and develop a wide network of banking products based on the study and application of positive experience in developed countries, especially in terms of modern trends in the development of the activity of the system of commercial banks, as well as their functioning and improvement of the products they provide. Conclusions. The orientation on the concept of improving goods (products) leads to concentration of the main efforts of the bank on constant improvement of quality of its products. In this case, the Bank focuses on improving service, but often releases the real needs of the client. And the latter, for example, may be interested in the beneficial investment, rather than in obtaining any additional services. Obviously, the successful progress of banking products to the market and their effective implementation are possible in the differentiation of clients, identifying among them those who can be a potential product data consumer. This requires the use of a flexible marketing strategy, the use of various forms of banking management in providing banking products to buyers. In order to survive in a competition, banks must enter into practice new types of services, to put the interests of shareholders in the first place, fight for each client. This explains the objective need for Ukrainian commercial banks to act on the market based on the theory and practice of modern banking management in terms of marketing innovations.

INTEGRATED MARKETING COMMUNICATIONS OF COMMERCIAL BANKS IN THE CONDITIONS OF A HIGHLY COMPETITIVE MARKET: ESSENCE AND FORMATION

In this article, we analyze the dynamics of active operations of several Ukrainian banks. During the last three years, there was a declining trend in the number of commercial banks in Ukraine and their issued loans' size. In order to increase the assets of banking institutions of Ukraine, increase their income, banks need to attract new customers, increase the volume of products purchases by existing customers through active communication activities of commercial banks of Ukraine. The intensification of Internet use by banks opens new opportunities for the sales systems improvement and promotion of their products. The analyzed the main characteristics of the commercial bank marketing policy of communications and the basic principles of integrated marketing banking institutions formation and the mechanism of their implementation, which begins with the collection and analysis of marketing information, based on the mission, corporate and marketing bank goals. We argue that an essential stage in forming integrated marketing communications of the bank is to determine its target audiences, which are much more comprehensive than the bank's target market, a rational combination of individual components of the bank's communication complex. Integrated marketing communications of a commercial bank should aim at forming its image and reputation in the market, taking into account the existing competitive advantages of the bank. We determined that in the conditions of Internet spread, an essential component of the integrated marketing communications of a banking institution is online communications. We formulated the main goals and means of marketing communications realization of the bank on the Internet and developed proposals to improve the efficiency of the bank in social networks

МІЖНАРОДНИЙ ДОСВІД ОЦІНКИ КРЕДИТОСПРОМОЖНОСТІ ПОЗИЧАЛЬНИКІВ КОМЕРЦІЙНИМИ БАНКАМИ

The country's economy is still in a state where its development is hampered by the lack of clearly defined, priority programs to stimulate entrepreneurship and industries, including through credit. Bank lending to businesses is an effective way out of the crisis. The strengthening of the role of credit relations as a means of stimulating the development of production is manifested in various aspects. The purpose of the article is to analyze and assess the creditworthiness of borrowers by commercial banks in the international space and the possibility of their introduction into the mechanism of bank lending, which is based on world practice. The study uses the fundamental provisions of economic theory, credit theory, banking, as well as studies of domestic and foreign scholars. General scientific principles of conducting complex scientific researches were used to solve the set tasks. In the process of research a number of general scientific methods were used, in particular: analogies, logical generalization and system analysis. Based on the identified problems, foreign experience was studied, on the basis of which the prospects for improving the assessment of creditworthiness of borrowers by commercial banks in Ukraine were identified. Based on studies of various methods of assessing creditworthiness, set out in the economic literature and used in banking practice, the author proposes an improved method of assessing the creditworthiness of a legal entity, which includes analysis of both quantitative and qualitative indicators of the borrower (financial condition, collateral, credit history, management skills). the borrower's ability to repay the loan). This method contains a sufficient, in the author's opinion, a set of indicators that will allow you to make decisions on the loan agreement and minimize credit risks. To reduce the risks of the loan portfolio, measures should be applied both at the level of risk management of the loan portfolio as a whole and at the level of the specific borrower.

Економічні нормативи НБУ як інструмент регулювання банківської діяльності

Researching the problems of banking supervision in the course of the policy of cleaning the banking system of Ukraine is of particular importance. The issues of efficiency of regulation of the activities of commercial banks with the help of economic standards of the NBU remain topical. The article is aimed at a theoretical-methodical substantiation of the NBU economic standards system and identifying the peculiarities of their application as instruments for regulating the banking activities. The state of compliance with capital, liquidity and credit risk standards by commercial banks of Ukraine is examined. A correlation and regression analysis of the impact of credit risk standards on the volumes of overdue credit arrears of banks is carried out. Ways to improve the system of regulation of the activities of commercial banks based on the principles developed by the Basel Committee on Banking Supervision are proposed. A further proposal is made as to introducing an additional economic standard for the regulation of credit risks, which would assess the risks of repayment of loans. In addition, it will be expedient for Ukraine to build a conceptual banking supervision, which will ensure close interaction of components in order to improve the efficiency of banking institutions. A comprehensive system of banking supervision should diagnose the level of risks and implement systems of their management at the level of each separate banking institution.

ЗЕЛЕНИЙ БАНКІНГ В УМОВАХ ДІДЖИТАЛІЗАЦІЇ

The article considers environmentally responsible green banking activity as a direction of sustainable development of the banking sector in the context of digitalization of the Ukrainian economy. The article reveals the content of the concept of green banking and sustainable development, defines the features of implementing sustainable development strategies in banking institutions. In particular, the main Green Environmental Services implemented by commercial banks in Ukraine are considered. Four stages on the way to the sustainability of financial activities of banking institutions have been identified. Four stages on the way to ensuring the sustainability of financial activities of banking institutions have been identified. The first stage is the protective phase of basic environmental risk management, when broader sustainability issues are ignored. The second is the reactive phase, where more systematic management of environmental and social risk is carried out. The third more active or offensive phase, in which strategic environmental and social risk management is carried out and even. The Ultimate banking sustainability phase, where the triple approach (people, planet and prosperity) is integrated into the bank’s core business strategy and is no longer limited to risk avoidance, but is now seen as a potential part of every type of financial risk management and decisionmaking processes. To determine the strengths and weaknesses, opportunities and threats, a SWOT analysis of the introduction of green banking in banking institutions of Ukraine in the context of digitalization was conducted. Three main components of the green banking strategy in Ukrainian banking institutions have been identified. These include: managing environmental risks, creating a so-called Green Office, developing and promoting environmentally friendly services and products through digitalization of the economy. A detailed review of Green Environmental Services, which can be implementation for the transition to environmental friendliness in the banking sector. The role of the banking sector in the development of green banking in the context of digitalization is determined. It is proved that green banking in this financial world is a new development and an active way to achieve sustainability in the future. Banks in Ukraine are quite far behind their counterparts in the developed economy. But banks that try to clarify the green color and use green financing tools in their activities have chances.

ПІДХОДИ ДО КОМПОЗИЦІЇ НАГЛЯДОВИХ РАД КОМЕРЦІЙНИХ БАНКІВ В УКРАЇНІ В КОНТЕКСТІ ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ЇХ ДІЯЛЬНОСТІ

Анотація. Корпоративне управління є важливим елементом ефективної банківської діяльності. Наявність задекларованих процедур і стандартів процесу ухвалення управлінських рішень зменшує рівень непрогнозованості і підвищує довіру між банками та їхніми контрагентами. Дотримання на практиці таких процедур, перш за все, залежить від композиції органів управління банку. Незважаючи на трирівневу структуру органів управління українських банків, стаття сфокусована на аналізі підходів до формування наглядових рад і впливу таких підходів на ефективність банківської діяльності. У процесі дослідження здійснено структурування теоретичних концепцій, пов’язаних із впливом складових елементів корпоративного управління на ефективність банківської діяльності. Окрім того, проведено систематизацію емпіричних досліджень за цією проблематикою. У контексті дослідження підходів до формування складу наглядових рад визначено головні законодавчі відмінності та фактори, що на них впливають. Здійснено дескриптивний аналіз структури наглядових рад комерційних банків України, висновки якого вказують на значну неоднорідність у підходах до формування складу наглядових рад. Визначено головні тенденції, які панують у банківському секторі за цим аспектом, а також виокремлено фактори, які впливають на наявність таких тенденцій. Установлено існування формального підходу, за якого «найбільш популярним» варіантом є склад ради з п’яти членів, троє з яких — незалежні. Побудовано модель впливу варіативності складу ради банку на ефективність його діяльності. З’ясовано, що для підвищення ефективності власної діяльності банкам слід розглянути варіанти розширення складу ради новими членами з відмінними освітніми напрямами і компетенціями. Ключові слова: корпоративне управління, наглядова рада, ефективність банку. Формул: 2; рис.: 1; табл.: 4; бібл.: 19.

FINANCIAL AND ECONOMIC SECURITY OF UKRAINE'S COMMERCIAL BANKS: THREATS AND PREVENTION MEASURES

Being the blood artery of any country's national economy, the banking system, as an aggregate of various types of national banks and credit institutions operating under the general monetary mechanism, is constantly threatened by the negative effects of a number of factors, both external and internal origin. Banking customers, competitors, the state, criminal groups, foreign structures and entities, as well as the legal, general economic, socio-political, scientific and technical and natural environment, have an external influence. The sources of banking system threats are also internal systemic factors, including the imperfection of banking supervision and regulation, the application of methods of unfair competition of competing banks, the development of mergers and acquisitions of banks, as well as the falsity, irrationality, imperfection of the internal environment. The essence of the concepts of security of a commercial bank and security of a commercial bank are considered and the author's vision of understanding the essence of the concept of and economic security of a commercial bank is proposed. Special attention is paid to the differentiation of financial and economic security threats to which commercial banks are exposed, performing their specific functions and acting as direct subjects of economic and financial relations. The dynamics of actual and characteristic values of indicators, which are the main indicators of financial and economic security of commercial banks, are demonstrated. On this basis, a set of priority measures aimed at preventing internal and external threats to the investigated security of Ukrainian commercial banks is proposed. The results of the conducted research prove the urgency of the problem of ensuring the financial and economic security of commercial banks, that is, preventing the probable or overcoming existing threats, both external and internal. The success of overcoming this problem depends to a large extent on the correct understanding of the concept of and economic security of the bank and the specific features of banking activities, which, in fact, create an extremely wide range of threats. Vulnerable to the negative impact of various events and phenomena inherent in both the world and domestic economies, commercial banks of Ukraine need a comprehensive solution to the issue of protection against threats to their security in general and financial and economic, in particular. The proposed set of identified measures requires a well-thought-out approach to their implementation through a well-formed mechanism, which is the object of further scientific exploration.