Management of assets of JSC CB "PrivatBank"
Students Name: Bobrov Oleksii Oleksiiovych
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: The intensification of Russian aggression on the territory of Ukraine has led to a deep economic crisis, which will have long-term consequences for the financial system. However, the banking sector is facing the challenges of the present: The activity of banking institutions remains uninterrupted, liquidity and credit activity. This is due to coordinated efforts of banks, prompt and correct reaction of the National Bank of Ukraine to changing conditions of functioning of the financial market, and also due to successful joint work since 2015 on reforming of the banking system. As a result, banks have come to the crisis with a significant stock of capital and liquidity, resistant to operational risks and effective, with developed action plans in the event of adverse events [1]. Each business entity in the process of operation determines its general strategy. The ultimate goal of the Bank’s activity in market conditions is to obtain profit. Therefore, it is very important to take into account all factors and aspects of further development during strategic planning for full and reasonable determination of the profit rate and ensuring a certain level of profitability. Today, both owners and managers are interested in forming effective key strategies for bank management, in particular, financial management. In this context, it is necessary to form strategic directions of the bank’s assets and liabilities management in order to ensure stable profitability of the bank [2]. The process of asset analysis and appraisal is important for the economic development of the country [3]. The directions of further development of banks are improvement of approaches to assessment of credit risks for their co-measurement with the depth of current crisis; adaptation of business models to current operating conditions; improvement of cybersecurity systems; timely compilation and reporting to the NBU, informing the regulator about risks of violation of requirements to financial indicators [4]. The object of the research is the asset management of JSC KB "PrivatBank", which has 2 240 branches in different regions of Ukraine [5]. The subject of the research is theoretical bases and practical measures of realization of methods and instruments of asset management in order to improve the bank’s financial condition on the example of data of JSC CB "PrivatBank". The tasks of the work are: – determination of the essence and factors of the bank’s assets management; – development of the composition of the asset management tools; - improvement of the methodology of asset analysis; - development of the bank’s asset management model. Theoretical aspects, problems of regulation, methods of estimation and analysis, principles of asset management are covered in the laws of Ukraine, NBU resolutions [6], works of such scientists as V. C. Bansal, S. Branovich-Bratanovich, I. Voloshin, H. Gruning, J. Dovgan, G. Karcheva, S. Kozmenko, T. Koch, A. Kulakova, O. Lavrushin, I. Larionova, J. F. Marshall, M. Pomorina, S. Prasolova, L. Primostyka, K. Redhead, P. Rose, I. Salo, V. Sevruk, J. Sinki, etc. In master’s qualification work the financial condition of JSC CB "PrivatBank" has been analyzed. During 2020, the bank’s lending activity was falling, but the volume of transactions with investment securities grew, and during 2021 – the growth of credit and investment activity. In 2020, the bank’s profit decreased by 25% due to increased expenses (in particular, from revaluation of foreign currency and investment real estate, expenses on reserve for legal risks and administrative), but in 2021 PrivatBank increased its profit by 43,5%. However, the bank has a rather poor quality of its credit portfolio. Having carried out SWOT analysis, strategic directions of development of JSC CB "PrivatBank" ensuring maximal profitability and stability of the bank, increase of clients and quality of their service, introduction of innovative banking services, as well as reduction of influence of existing risks on activity of the bank institution. Mathematical modeling with the use of correlation-regression analysis was carried out, the connection between the value of income assets and interest income was studied. The amount of credits is predicted. The complex of measures on improvement of the system of management of assets of the bank, namely: Sale of real estate, which has passed into the property of the bank as a holder of depreciated credits of clients, as well as granting for rent; reduction of depreciated credits in the credit portfolio of the bank, has been proposed. Key words: Bank, finance management, assets, risk. References 1. Moroz N.V. (2022). Trends in the banking sector of Ukraine. Market infrastructure. № 68. P. 237-242. 2. Bondarchuk M. K., Yushchik Yu. V. (2022). Strategic directions of management of assets and liabilities of the bank. International Scientific Journal “Internauka”. Series: “Economic Sciences”. № 7. https://doi.org/10.25313/2520-2294-2022-7-8162 3. Ilchuk P., Kots O., Adamenko D. (2022). The enterprises` assets as the source of national economy post-war recovery. International scientific journal "Internauka". Series: "Economic Sciences". — 2022. — №9. https://doi.org/10.25313/2520-2294-2022-9-8237. 4. Moroz N. V., Moroz Ye. T. (2022). Financial sector of Ukraine: functioning in the conditions of war. Scientific notes of the National University "Ostroh Academy". "Economics" series: scientific journal. Ostrog: Publication of NaUOA, September 2022. № 26 (54). P. 95–100. 5. Official site of JSC "Oschadbank" [Electronic resource] - Mode of access to the resource: https://www.oschadbank.ua/ua. 6. Official site of the National Bank of Ukraine: statistical data [Electronic resource]. - Access mode: http://www.nbu.gov.ua