ASSESSMENT OF FINANCIAL SECURITY OF BANKS IN CONDITIONS OF MACROECONOMIC INSTABILITY

Keywords: financial security of banks, indicators, methodical approach to the assessment of financial security of banks, functional components of financial security of banks, value-oriented strategy of bank management

Abstract

The subject of the study is a set of criteria, measures and indicators for assessing the financial security of banks and methodological approaches to its evaluation. The purpose of this article is to systematize theoretical and methodological provisions and substantiate practical recommendations for assessing the level of financial security of banks. The main objectives of the study are: study and analysis of the existing methodological approaches to assessing the level of financial security of banks, identification of advantages and disadvantages of each, on this basis modification of the authors’ own methodological approach, including criteria, measures, indicators, weights. In the course of the research, the following methods were used: abstract-logical analysis - for theoretical generalization and justification of directions and results of the study, systematic and statistical analysis - for analysis and systematization of methodological approaches to assessing the level of financial security of banks, method of expert analysis - for establishing the coefficients of significance of parameters in proposed models, graphical method - for visualization and schematic representation of theoretical and practical results of the study. Bank security zones have been proposed for each level of bank financial security and strategies for value-oriented management have been developed. Results. The existing methods and models for assessing the level of financial security of commercial banks were studied; the advantages and disadvantages of each are identified; an original methodological approach to assessment (criteria, indicators, indicators, weights and algorithm) under the conditions of macroeconomic instability was summarized and proposed. Conclusions. Based on a comprehensive analysis of the works of domestic and foreign scholars and practitioners on the problem of assessing and ensuring the financial security of commercial banks, it has been established that no single comprehensive model for assessing the financial security of banks has been developed yet. All existing models have a high affinity and no systemicity. A system of financial security valuation indicators is proposed, based on a value-oriented approach, and including indicators that integrate into five functional components: capital and resource, credit and investment, income and expense security, currency and value-monetary security of the bank. This approach makes it possible to quantify the impact of each set of indicators on the financial security level of a banking institution, determine its integral level and conduct its operational, tactical and strategic assessment. According to established zones of financial security of banks, value-oriented strategies for managing banks under the conditions of macroeconomic uncertainty are proposed.

Downloads

Download data is not yet available.

Author Biographies

Tetiana Momot, O. M. Beketov National University of Urban Economy in Kharkiv
Doctor of Sciences (Economics), Professor, Head of the Department of Financial and Economic Security, Accounting and Audit
Svetlana Rodchenko, .M. Beketov National University of Urban Economy in Kharkiv
Senior Lecturer of the Department of Financial and Economic Security, Accounting and Audit

References

Hajduk, V. I., Vorokov, А. L., Hajduk, N. V. (2015), "Financial Security of Commercial Banks : Criteria and Indicators", Scientific journal KubGAU, No. 114 (10), available at : http://ej.kubagro.ru/2015/10/pdf/06.pdf (last accessed 02.08.2019).

Krupka, І. М. (2012), "Financial and Economic Security of Ukraine’s Banking System and Perspectives of National Economy Development", Business Inform, No. 6, P. 168–175.

Andreeva, Е. А. (2014), Providing Economic Security of Russion Multidivisional Bank with Foreign Participation : dissertation for the degree of candidate of economic sciences : 08.00.05, Moscow, 184 p.

Yepifanov, А. О., Plastun, О. L., Dombrodskyj, V. S. and others (2009), Financial Security of Enterprises and Banking Institutions: monograph, Sumy: DVNZ (State High Educational Institution) "Ukrainian Academy of Banking of the National Bank of Ukraine", 295 p.

Kolodizev, О. М., Shtaer, О. М. (2011), "Forming of Universal System of Bank’s Economic Security Assessment", Problems of Economics, No. 2, P. 67–75.

Natocheeva, N. N. (2011), "Methodology of Providing Strategic Financial Security of Commercial Banks", Economics. Taxes. Law, No. 4, P. 79–88.

Kallaur, P. V. (2008), "System of Providing Sustainability of Banking Sector of Belarus Republic", Money and Credit, No. 6, P. 23–29.

Khachaturian, H. Yu. (2010), Institutional Bases of Providing Economic Security of Banking System of Russian Federation under Present-day Conditions : abstract of dissertation for the degree of candidate of economic sciences: 08.00.01, Moscow, 27 p.

Baranovskyj, О. І. (2006), "Banking Security: Problem of Measuring", Economics and prognostication, No. 1, P. 7–25.

Cherenkov, V. Е. (2005), Modern Directions and Mechanisms of Providing Economic Security of Banking System of Russia: dissertation for the degree of candidate of economic sciences: 05.13.10. Moscow: Russian Academy of Public Service by President of Russian Federation, 174 p.

Vasylchenko, Z., Vasylchenko, І. (2006), "Theoretic Concept of Bank’s Economic Security Assessment", Banking, No. 4, P. 36–45.

Riznyk, N. S. (2008), "Theoretical Approaches to Methodology Construction for Bank’s Financial Security Diagnostics", Financial System of Ukraine: Collection of Scientific Works of National University "Ostroh Academy", Issue 10, Part 3, P. 195–201.

Franchuk, V. І., Melnyk, S. І. (2012), "Scientific and Methodical Approaches to Commercial Bank Economic Security Level Assessment", Scientific Bulletin of Lviv State University of Internal Affairs: Economic Series, No. 1, P. 48–58.

Vasylchyshyn, О. B. (2016), "Analysis of Existing Models of Banks and Banking System Financial Security Assessment and Ways of Its Improvement", Regional Economy, No. 2, P. 156–164, available at : http://ird.gov.ua/pe/re201602/re201602_156_VasylchyshynOB.pdf (last accessed 28.07.2019).

Pestovska, Z. S. (2013), "Indicators of Banking Activity Financial Security: macro- and microeconomic levels", available at : http://duan.edu.ua/uploads/finansy14-15/11137.doc (last accessed 21.07.2019).

Kovalenko, V. V. (2016), "Philosophy of Banks Security in Context of Structural Imbalances in Ukrainian Economy", Economic Forum, No. 2, P. 256–262.

Tysiachna, Yu. S., Azizova, К. М., Rats, О. М. (2015), "Complex Technology of Benchmarking as an Instrument of Bank Financial Security Providing", Actual Problems of Economy, No. 5 (167), P. 427–437.

Baranovskyj, О. І., Baryliuk, М. R. (2017), "Integral Assessment of Commercial Bank Financial Security Level", Scientific Light, Vol. 1, No. 7, P. 34–45. available at : http://dspace.ubs.edu.ua/jspui/bitstream/123456789/716/1/baranovskyi_integral_assessment.pdf (last accessed 25.07.2019).


Abstract views: 17
PDF Downloads: 8
Published
2019-09-23
How to Cite
Momot, T. and Rodchenko, S. (2019) “ASSESSMENT OF FINANCIAL SECURITY OF BANKS IN CONDITIONS OF MACROECONOMIC INSTABILITY”, INNOVATIVE TECHNOLOGIES AND SCIENTIFIC SOLUTIONS FOR INDUSTRIES, (3 (9), pp. 34-43. doi: 10.30837/2522-9818.2019.9.034.