MAIN INDICATORS EFFICIENCY OF BANKING BUSINESS DEVELOPMENT MANAGEMENT
Abstract
The article examines the effectiveness of management of banking business development of banking business has been completed, as it has shown that cardinal changes are taking place in the banking sector of Ukraine. Such changes are due to the decrease in the pay-per-person capacity of the clients, the interconnected gentry to discourage the arrival of banks, to the advances of the economies, as inheritors, to those who have moved to the banks. The assessment of the efficiency of bank business development management made it possible to increase the growth of bank income and the results became the basis for the adoption of the strategy of the development of the future. Analysis of the effectiveness of managing the development of banking business, the percentage of banks‘ assets, the percentage of banks’ assets from the bank’s owner (banks with a state-owned part; banks, which are located before the third-party banking groups; banks with private capitalists) margin, operational income, net income. The study showed that as of June 1, 2021, the banking business as a whole is operating effectively, as evidenced not only by the growth of absolute profits, but also, above all, the indicators of return on assets and return on capital. According to the consolidated data, the average Ukrainian bank, which just emerged from the crisis in 2018 as of June 1, 2021, is generally efficient. However, private and “other” state-owned banks still have too high a share of their income expenditures. The return on capital of these banks is also the lowest. The best positions in 2020 are observed in bank “Privatbank”. Leading the domestic market are banks belonging to foreign banking groups, they have consistently high and balanced management efficiency. The second position in terms of the efficiency of managing the development of the banking business in Ukraine is occupied by banks with a state share. The third position is occupied by banks with private capital. It is determined that among the main problems of the banking business, which affect the rate of profitability, is the outpacing growth of costs relative to the bank’s income.
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