FEATURES OF MANAGEMENT AND FORMATION OF THE BANK'S FINANCIAL RESULTS

Abstract

Each banking institution seeks to obtain a positive financial result, which is a criterion for the success of managing a commercial bank. The profit earned by a commercial bank is directly related to its effective operations. Profit growth affects both the banking institution itself and the depositors, as it is the key to their financial well-being. The state is also interested in obtaining a positive financial result of the bank, since the amount of income tax paid by the bank is a source of budget revenues. Thus, the profit reflects the interests of the state, customers and staff of banks. Therefore, the study of the formation and management of financial results of a commercial bank is a very relevant issue, since the profit obtained by the bank depends on ensuring real competitive advantages in the banking services market and the effectiveness of its activity in the conditions of economic crisis. Therefore, this question is rather relevant to the economy of Ukraine as a whole. Managing the bank's financial result is an important component of banking management. To effectively manage the financial result of the bank's activity requires the construction of appropriate organizational and methodological management systems, knowledge of the basic mechanisms of profit generation, as well as the use of modern methods for its analysis and planning. The formation of a positive financial result of a bank is influenced by many factors, including the size of income and expenses, the effectiveness of interest rate policy, the amount of risks incurred by the bank, so the assessment of the management of financial results of the bank should be determined in the form of an integral indicator, which will be an aggregate factor of influence on the him. Such an indicator is calculated using a taxonomic analysis that can be used to make generalized estimates of the complex process of managing a bank's financial results. One of the results of applying taxonomic analysis is the taxonomic coefficient of the level of development. This indicator is a synthetic value equivalent to all the characteristics that characterize the studied population.