METHODICAL TOOLS FOR INTEGRATED ASSESSMENT OF THE ECONOMIC SECURITY OF UKRAINE’S BANKS

Abstract

The article offers methodical tools for integrated assessment of the economic security of banks. It is based on 59 indicators and takes into account such components of security as resource, asset-forming (transformational), risk-forming, stabilization and functional, productive. The resource component of banks’ economic security reflects the sufficiency of their own, involved and borrowed financial resources for stable and efficient operation to make a profit and protect the interests of shareholders, depositors, and creditors. The asset-forming (transformational) component of economic security is one of the most important, as it represents not only the degree of use of the banking system’s potential in economic development but also the credit and investment direction of assets, their quality, the degree of problematicity, and the impact on the economic security of the banking sector. Assessing the impact of risk on economic security involves the use of the indicators of prudential banking supervision, namely basic economic standards and several coefficients that reflect the risk of active banking transactions. The stabilization and functional component of economic security shows the impact of macroeconomic indicators on the state of the monetary and credit market and inflation rate. Profit (loss) as a result of the functioning of the banking system is one of the key indicators of security and a necessary prerequisite for the implementation of development strategies. This approach allowed determining the level of the economic security of Ukrainian banks based on the calculated value of the integral indicator. The differentiation of the quantitative value of the indicator within the proposed values allows assessing the level of banks’ security as high, satisfactory, low, critical. The practical significance of this approach is that it allowed identifying risks, threats, and dangers to banks and defining the most significant of them.