Research into mechanism for improvement of financial condition at JSC “Taskombank”
Students Name: Shakh Olena Mykhailivna
Qualification Level: master (ESP)
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: англійська
Abstract: The topic of the master’s thesis deals with an important issue for banks - the mechanisms for ensuring and maintaining their satisfactory financial condition. Since the financial condition of a bank can affect its ability to borrow funds and provide financial services to its customers, it has a direct impact on the final results of the financial institution’s activities, which is why this issue is very relevant [1]. Due to the very unstable economic environment caused by the outbreak of a full-scale war, banking institutions should pay special attention to improving their financial position [2]. Therefore, the development of an effective strategy to improve the financial condition of banking institutions will contribute to the effective development of the entire banking system of Ukraine. The full-scale aggression and the introduction of martial law posed a serious challenge to the stability of the banking sector. In such circumstances, qualitatively new approaches to ensuring and maintaining the financial stability of banks are needed. In today’s economic environment, all business areas and industries are heavily dependent on the stable functioning of the financial market, and the banking sector in particular. In wartime, financial intermediaries faced qualitatively different threats and new challenges. This paper defines the prerequisites and support mechanisms the stable financial condition of the bank in the conditions of the unfavourable influence of factors of the external environment. Significant some of the gains in the financial sector over the past few years, which include rising bank profitability and curbing inflation, have been reversed since the Russian attack. With the beginning of a full-scale war on the territory of Ukraine, the impact of the deterioration of the financial condition of the banking sector was also felt by the clients of financial institutions, as there were problems stopping the operation of many branches, the impossibility of withdrawing cash from ATMs, buying foreign currency, using the usual services of remote service. For their part, banks have also experienced significant losses of assets and liquidity due to loan defaults or significant branch destruction, especially in areas where hostilities are active. However, despite the negative impact of the listed factors, the banking system of Ukraine managed to quickly adapt to critical changes in the external environment and continue stable work, using the best possible tools to support the financial condition of banks in general. The instability caused by the war will probably continue for some time even after the end of hostilities, therefore the banking sector now needs scientifically based approaches to develop a system of measures to restore operations and ensure the financial condition of banks. The subject of the study is the development of a mechanism for improving the financial condition of JSC «Tascombank». The object of research is the financial and economic activity of JSC «Tascombank». The purpose of the study is to evaluate theoretical approaches to ensuring the stable financial condition of the bank and to develop practical recommendations for improving the mechanism for improving the financial condition of JSC «Tascombank», in particular under martial law. The master’s thesis consisted of three sections. In the theoretical and analytical part, the theoretical foundations of the concept of financial condition and how it is covered by scholars in their works are presented. The absence of a single definition of this term explains the need for new approaches to studying the mechanism of improving the financial condition of a bank. In addition, various directions for improving the efficiency of banking institutions based on the research of experts in economic sciences are considered [3-6]. The financial statements of the business entity are analyzed, and horizontal and vertical analyses of the statement of financial position and the income statement are performed. The leading analytical indicators of the bank are calculated, namely, the analysis of liquidity, profitability, capital, and coefficient analysis. In the second section, a SWOT analysis of JSC «Tascombank» was carried out, which characterizes the main strengths and weaknesses of this entity, threats and opportunities, and analyses the factors of the macro- and meso-environment of the entity. The economic and mathematical modelling of the net interest margin of the bank is carried out, as well as the forecasting of the net interest income of the bank on the basis of the moving average and the least squares method. Design solutions to improve the financial condition and design solutions to increase interest and commission income are proposed, as well as financial results from the proposed management decisions, reflecting the effectiveness of these ways to increase income, are determined. Keywords - bank, financial institution, banking system, banking sector, fee and commission income, interest income, net interest margin, financial condition, financial stability. List of used literature sources: 1. Vinnichenko, O. V., & Gudz, A. V. (2020). The financial condition of the bank and methods of its assessment in Ukraine. Bulletin of Economics of Transport and Industry, (69). 2. Ratz, O. M. (2023). Research of the efficiency of functioning of banking institutions of Ukraine under martial law. 3. Gataullina, E., & Klymenko, M. (2022). Features of the modern structure of the banking system of Ukraine. Economy and society, (37). DOI: https://doi.org/10.32782/2524-0072/2022-37-27. 4. Podderyogin, A. M. (2006). Finance of enterprises: a textbook. K.: KNEU. 5. Gerasimovich, A. M., Parasiy-Vergunenko, I. M., & Kotsovskoy, R. R. (2016). ANALYSIS OF INCOME AND EXPENSES OF A COMMERCIAL BANK. Jsc 65.9 (4Ukr) y43 A 43, 135. 6. Bondarchuk, M. K., Alekseev, I. V., Chervinska, O. S., Mizyuk, I., Repetskyi, B., & Mizyuk, K. (2021). STRATEGIC MANAGEMENT OF FINANCIAL SUSTAINABILITY OF A COMMERCIAL BANK. Deutsche Internationale Zeitschrift fur zeitgenossische Wissenschaft, (16), 13-16.