ANALYSIS OF BANKING SYSTEM FUNCTIONING AND INFLUENCE OF UNCERTAINTY FACTORS ON STRATEGIC MANAGEMENT OF BANK FINANCES

Abstract

The article analyzes the banking system of Ukraine in times of crisis and highlights the current state of its functioning. It is noted that the banking crisis played an important role, as a result of which there were a number of problems, namely at the level of management of individual banks, the reason for vulnerability to crisis phenomena was, first of all, the inefficiency of strategic management, which resulted in a high-risk profile of most of them in conditions of insufficient capital coverage of these risks. It is determined that the effectiveness of strategic management of bank finances of Ukraine depends to a large extent on factors at micro (the bank is affected by the external set of economic relations in the field of finance, represented by the subjects, the interaction with them creates uncertainty), macro (political, social, etc.) and mega-levels (such as the unstable state of the global economy, changes in the trends of monetary regulation, etc.) that have high degree of uncertainty. The dynamics of the main indicators of the banking system is studied and analyzed, in particular the number of banks included in the State Register of Banks, banks with a banking license, banks with foreign capital and banks with 100% foreign capital; asset structure; volume of toxic loans (the presence of large amounts on the balance sheets of banks' toxic assets, as well as the possible deterioration of loan servicing by borrowers due to rising macroeconomic, social and political instability negatively affects the quality of strategic financial management, as it significantly increases uncertainty in management decisions), and financial results of the banking system of Ukraine. It is determined that the operational environment of banks' functioning has a number of uncertainties that further influence the bank's finances and the effectiveness of their management.