CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS
The article analyzes changes in the business models of Ukrainian banks using the author's method of structural and functional groups of banks (SFGB). The method’s basis is the processing, systematization, and visualization of the system’s values of banks’ financial indicators using Kohonen’s s...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2022-12-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/3923 |
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| author | Олена Заруцька Оксана Пономарьова Роман Павлов Тетяна Павлова Оксана Левкович |
| author_facet | Олена Заруцька Оксана Пономарьова Роман Павлов Тетяна Павлова Оксана Левкович |
| author_sort | Олена Заруцька |
| collection | DOAJ |
| description |
The article analyzes changes in the business models of Ukrainian banks using the author's method of structural and functional groups of banks (SFGB). The method’s basis is the processing, systematization, and visualization of the system’s values of banks’ financial indicators using Kohonen’s self-organizing map (SOM). Depending on the level distribution of a large number of indicators that characterize the structure of assets, liabilities, income, expenses, and other qualitative indicators that describe the business models of each bank on successive reporting dates, homogeneous groups of banks are formed. The purpose of this study is to compare the key features of the banking system as of January 1 and September 1, 2022, and the corresponding changes in business models.
Over the eight months of 2022, the number of banks with corporate lending increased slightly, but the resource base of these banks gradually changed. The number of banks with retail financing decreased at the expense of banks with current resources. During an increase in the discount rate and in the price of refinancing loans, banks’ business model that attracts resources on the interbank market and places them in securities has shrunk. At the same time, the number of banks with an increased level of securities in assets and corporate financing increased. The quality of the portfolio indicates the increased credit risks of the respective large state banks.
The drawback of the proposed method is the dependence of conclusions on official banks 'statements that do not always reflect nuisances of financial position. Within small banks, we can sometimes observe that current changes in clients' account balances affect the position in SFGB. The SFGB method can be applied to analyze trends and estimate the probability of subsequent structural changes. For each bank, one can observe the trajectory change on the map and investigate the reasons for the change in business strategy.
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| first_indexed | 2024-03-12T03:36:02Z |
| format | Article |
| id | doaj.art-c590f6939ad941a5b4bc06aa82c5ffac |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2024-03-12T03:36:02Z |
| publishDate | 2022-12-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-c590f6939ad941a5b4bc06aa82c5ffac2023-09-03T13:09:57ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702022-12-0164710.55643/fcaptp.6.47.2022.3923CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISISОлена Заруцька0Оксана Пономарьова 1Роман Павлов 2Тетяна Павлова 3Оксана Левкович 4D.Sc. in Economics, Head of the Department of Finance, Banking and Insurance, University of Customs and Finance, Dnipro, UkraineSenior Lecturer of the Department of Finance, Banking and Insurance, University of Customs and Finance, Dnipro, UkrainePhD in Economics, Associate Professor of the Department of Economics, Entrepreneurship and Enterprise Management, Oles Honchar Dnipro National University, Dnipro, UkraineD.Sc. in Philosophy, Professor of the Department of Philosophy, Dnipro National University named after Oles Honchar, Dnipro, UkrainePhD in Economics, Associate Professor, Head of the Department of Finance, Banking and Insurance, Oles Honchar Dnipro National University, Dnipro, Ukraine The article analyzes changes in the business models of Ukrainian banks using the author's method of structural and functional groups of banks (SFGB). The method’s basis is the processing, systematization, and visualization of the system’s values of banks’ financial indicators using Kohonen’s self-organizing map (SOM). Depending on the level distribution of a large number of indicators that characterize the structure of assets, liabilities, income, expenses, and other qualitative indicators that describe the business models of each bank on successive reporting dates, homogeneous groups of banks are formed. The purpose of this study is to compare the key features of the banking system as of January 1 and September 1, 2022, and the corresponding changes in business models. Over the eight months of 2022, the number of banks with corporate lending increased slightly, but the resource base of these banks gradually changed. The number of banks with retail financing decreased at the expense of banks with current resources. During an increase in the discount rate and in the price of refinancing loans, banks’ business model that attracts resources on the interbank market and places them in securities has shrunk. At the same time, the number of banks with an increased level of securities in assets and corporate financing increased. The quality of the portfolio indicates the increased credit risks of the respective large state banks. The drawback of the proposed method is the dependence of conclusions on official banks 'statements that do not always reflect nuisances of financial position. Within small banks, we can sometimes observe that current changes in clients' account balances affect the position in SFGB. The SFGB method can be applied to analyze trends and estimate the probability of subsequent structural changes. For each bank, one can observe the trajectory change on the map and investigate the reasons for the change in business strategy. https://fkd.net.ua/index.php/fkd/article/view/3923banking risksbusiness models of banksbanking systemcluster analysisKohonen mapsstructure of bank assets |
| spellingShingle | Олена Заруцька Оксана Пономарьова Роман Павлов Тетяна Павлова Оксана Левкович CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS Фінансово-кредитна діяльність: проблеми теорії та практики banking risks business models of banks banking system cluster analysis Kohonen maps structure of bank assets |
| title | CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS |
| title_full | CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS |
| title_fullStr | CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS |
| title_full_unstemmed | CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS |
| title_short | CHANGES IN UKRAINIAN BANKS ‘BUSINESS MODELS IN TIMES OF MILITARY CRISIS |
| title_sort | changes in ukrainian banks business models in times of military crisis |
| topic | banking risks business models of banks banking system cluster analysis Kohonen maps structure of bank assets |
| url | https://fkd.net.ua/index.php/fkd/article/view/3923 |
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