VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK
The article explores the main approaches to understanding the concept of "value-oriented management". It is established that there are different methods of assessing the value of banking institutions, in particular, cost, revenue and comparative approaches. The main advantages and disadva...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2019-06-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/1995 |
| _version_ | 1797703950600765440 |
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| author | T. V. Momot D. Tumietto S. S. Rodchenko N. Lelyuk |
| author_facet | T. V. Momot D. Tumietto S. S. Rodchenko N. Lelyuk |
| author_sort | T. V. Momot |
| collection | DOAJ |
| description |
The article explores the main approaches to understanding the concept of "value-oriented management". It is established that there are different methods of assessing the value of banking institutions, in particular, cost, revenue and comparative approaches. The main advantages and disadvantages of value-oriented management are outlined.
The analysis of cash flows of three systemic Ukrainian banks: JSC "The State Export-Import Bank of Ukraine", JSC CB "Privatbank", PJSC "State Savings Bank of Ukraine" is conducted. On the basis of the analysis, the value of banks is calculated. It is defined that the main factors influencing the value of banking institutions are adequacy of regulatory capital, return on equity, return on assets, interest rate margin, liquidity, level of problem loans, capital adequacy ratio and financial leverage. A correlation analysis of the bank’s dependence on these factors is carried out. It is established that individual factors have a multicollinarn dependence, which makes it impossible to use them in constructing a regression model. Among the factors mentioned are factors that have the greatest impact on the value of banking institutions. These factors include the following: adequacy of regulatory capital, level of problem loans, capital adequacy ratio. The regression model of the dependence of the bank’s cost to the balance capital on the determined factors is constructed.
The regression equation obtained in the result of the analysis shows that the ratio of the bank’s value to the balance (book) capital of PJSC "State Savings Bank of Ukraine" in the period of 2013-2017 is directly dependent on the coefficient of capital adequacy and inversely related with the adequacy of the regulatory capital and the level of the problem loans. It is established that when developing the strategy of raising the value of the bank the measures aimed at managing capital adequacy and reducing the level of problem loans should be developed.
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| first_indexed | 2024-03-12T05:13:06Z |
| format | Article |
| id | doaj.art-d4a42a1823aa4910be0aadd359ab096f |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2024-03-12T05:13:06Z |
| publishDate | 2019-06-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-d4a42a1823aa4910be0aadd359ab096f2023-09-03T08:26:55ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702019-06-0122910.18371/fcaptp.v2i29.171968VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANKT. V. Momot0D. Tumietto1S. S. Rodchenko2N. Lelyuk3O. M. Beketov National University of Urban Economy in Kharkiv, Ukraine;Link Campus University, Rome, Italy;O. M. Beketov National University of Urban Economy in Kharkiv, Ukraine;O. M. Beketov National University of Urban Economy in Kharkiv, Ukraine; The article explores the main approaches to understanding the concept of "value-oriented management". It is established that there are different methods of assessing the value of banking institutions, in particular, cost, revenue and comparative approaches. The main advantages and disadvantages of value-oriented management are outlined. The analysis of cash flows of three systemic Ukrainian banks: JSC "The State Export-Import Bank of Ukraine", JSC CB "Privatbank", PJSC "State Savings Bank of Ukraine" is conducted. On the basis of the analysis, the value of banks is calculated. It is defined that the main factors influencing the value of banking institutions are adequacy of regulatory capital, return on equity, return on assets, interest rate margin, liquidity, level of problem loans, capital adequacy ratio and financial leverage. A correlation analysis of the bank’s dependence on these factors is carried out. It is established that individual factors have a multicollinarn dependence, which makes it impossible to use them in constructing a regression model. Among the factors mentioned are factors that have the greatest impact on the value of banking institutions. These factors include the following: adequacy of regulatory capital, level of problem loans, capital adequacy ratio. The regression model of the dependence of the bank’s cost to the balance capital on the determined factors is constructed. The regression equation obtained in the result of the analysis shows that the ratio of the bank’s value to the balance (book) capital of PJSC "State Savings Bank of Ukraine" in the period of 2013-2017 is directly dependent on the coefficient of capital adequacy and inversely related with the adequacy of the regulatory capital and the level of the problem loans. It is established that when developing the strategy of raising the value of the bank the measures aimed at managing capital adequacy and reducing the level of problem loans should be developed. https://fkd.net.ua/index.php/fkd/article/view/1995bank valuevalue-oriented managementproblem loanscapital adequacyadequacy of regulatory capital |
| spellingShingle | T. V. Momot D. Tumietto S. S. Rodchenko N. Lelyuk VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK Фінансово-кредитна діяльність: проблеми теорії та практики bank value value-oriented management problem loans capital adequacy adequacy of regulatory capital |
| title | VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK |
| title_full | VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK |
| title_fullStr | VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK |
| title_full_unstemmed | VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK |
| title_short | VALUE-BASED SECURITY SYSTEM OF THE COMMERCIAL BANK |
| title_sort | value based security system of the commercial bank |
| topic | bank value value-oriented management problem loans capital adequacy adequacy of regulatory capital |
| url | https://fkd.net.ua/index.php/fkd/article/view/1995 |
| work_keys_str_mv | AT tvmomot valuebasedsecuritysystemofthecommercialbank AT dtumietto valuebasedsecuritysystemofthecommercialbank AT ssrodchenko valuebasedsecuritysystemofthecommercialbank AT nlelyuk valuebasedsecuritysystemofthecommercialbank |