Burkovska Alla, Candidate of Economic Sciences, Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv national agrarian university, Mykolayiv, Ukraine
Satsura Olga, applicant higher education accounting and Finance faculty, Mykolayiv national agrarian university, Mykolayiv, Ukraine
DEFINITIONS AND SUPPORT FINANCIAL STABILITY OF COMMERCIAL BANK OF UKRAINE
The article discusses the concept of financial stability of the banking institution as an important element for its effective and profitable activity in the banking market. Found that the financial stability of the commercial bank group determined indicators: liquidity, solvency, profitability, profitability, asset quality, capital adequacy and business activity. The analysis of groups of indicators that ensure the financial stability of the banking institution. Developed trendline commercial bank assets to determine prognosis to ensure the financial stability of the banking institution in future years. A decomposition analysis of return on assets and equity of the bank to determine their impact on the overall financial stability of the bank. Discovered promising ways to improve the level of provision of financial stability of commercial banks. Investigated PJSC “Savings State Bank” has a more extensive network of institutions – more than 5,000 units, one of the three leaders of the domestic banking market. However, the total amount of liabilities of the bank in 2016 increased in comparison with the previous 2015 due to increase of clients’ funds by 21,1 %, issued debt securities and subordinated debt. The bank’s gross expenditures in 2016, as compared to 2015, have increased due to inflation, an increase in the volume of securities issues, an increase in labor costs and other external and internal factors. It was found that the investigated bank has problems with ensuring an adequate level of financial stability, thus, the liquidity of the bank as one of the main indicators of financial stability of the bank, is in an unsatisfactory range (in the reporting year 2016 – 11.9). In addition, the bank has problems managing assets, which increases the impact of credit risk on the banking institution. The calculated coefficient of financial leverage exceeds the optimal value (<1,0) during the research, which indicates an increase in the financial risk of the bank’s activities.
Keywords: financial firmness, liquidity, solvency, profitability, commercial bank, capital adequacy, profitableness, decomposition analysis.
JEL Classіfіcatіon: G 21, G 32.
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