Theoretical aspects of bank's financial resilience assessment

Abstract

The purpose of the paper is a comparative analysis and generalization of the theoretical foundations of assessing the financial resilience of banks. The following methods were used in the research process: the methods of logical generalization, comparative analysis, synthesis, induction and deduction, the method of graphic visualization. The article examines the essence of the category of bank’s financial resilience. It is shown that the financial resilience of the bank depends on its resource base status and the efficiency of current activities. Exogenous and endogenous factors affecting the bank's financial resilience were studied and systematized. It is substantiated that exogenous factors, despite their exceptional importance, affect the resilience of a particular bank indirectly and deferred. The bank's direct competitive advantages are formed by endogenous factors. The wide variability of bank’s resilience assessment methods was noted. Classification, concise description and comparative analysis of the most used domestic and foreign methods and methods of national rating agencies were carried out. It is shown that all methods reliably assess only the current state of the bank, without focusing on forecast values. It was made a conclusion about the insufficiency of using one technique for conducting a thorough analysis of the bank's resilience. To determine possible directions for strengthening the bank's resilience, it was proposed to use the additional tools: economic and mathematical modeling, rating methods, coefficient analysis. Another element of the bank's resilience assurance and assessment system is the financial ratios established by the National Bank of Ukraine. The ratios consist of three groups: capital ratios, liquidity ratios and risk ratios. Compulsory compliance with ratios by all Ukrainian banks ensures the protection of clients' interests. The National Bank of Ukraine has also established key statistical indicators of the financial resilience of banks. Despite the different level of informativeness of the indicators, their comprehensive systematic use is able to fully describe the current state of the bank's financial resilience and create an informational framework for its forecasting. The bank's financial resilience assessment system is the basis for ensuring the stability of the national banking system, which is one of the tasks of national security in martial law conditions.