JUSTIFICATION OF BANK FINANCIAL SECURITY MANAGEMENT STRATEGY

Authors

DOI:

https://doi.org/10.18371/fcaptp.v4i39.238800

Abstract

Abstract. Inconsistency of modern conditions of commercial banks operation pose a threat to their activities and existence. Therefore, the problem of ensuring the financial security of banks is relevant. Ensuring the financial security of the bank should be based on a scientifically sound strategy that involves action on certain functional components of security.

It is proposed to use a functional approach to the integrated assessment of the level of financial security of a banking institution, which takes into account four groups of indicators - capital and resource, credit and investment, currency security, as well as the security of bank income and expenses. This approach makes it possible to quantify the impact of each group of indicators on the level of financial security of a banking institution. An integrated assessment of the key components of the bank’s integrated financial security indicator revealed that the four surveyed banks are characterized by a sufficient level of financial security. The results of the integrated indicator of financial security of the bank should be used in developing a strategy for ensuring the financial security of the bank.

The article proposes and substantiates the theoretical and methodological foundations of the strategy for ensuring the financial security of the bank. It is substantiated that to achieve a certain level of financial security of the bank it is advisable to use the GAP-method. It is proved that the application of this method will allow to single out only those components that have the greatest impact on the level of bank security and which need to be influenced. It is established that the strategy of ensuring the financial security of a banking institution should be aimed at bridging the gaps in key indicators. The methodology of game theory was used to establish the expediency of overcoming strategic gaps. It is proved that the application of the chosen methods of strategic planning will allow to quickly identify the causes of deviations from the safe level of the bank and justify the feasibility of influencing certain factors.

 Keywords: financial security of the bank, financial security strategy, GAP-method, integrated indicator of financial security of the bank.

 JEL Classification G 21, O 16

 Formulas: 4; fig.: 0; tabl.: 5; bibl.: 17.

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Published

2021-09-10

How to Cite

Vysotska, I., Savina, S., Mazur, K., Nahirna, M., & Dorosh, I. (2021). JUSTIFICATION OF BANK FINANCIAL SECURITY MANAGEMENT STRATEGY. Financial and Credit Activity: Problems of Theory and Practice, 4(39), 58–65. https://doi.org/10.18371/fcaptp.v4i39.238800

Issue

Section

The Modern banking. The problems and prospects of development