CAPITALIZATION OF BANKS' INTANGIBLE ASSETS IN MODERN CONDITIONS

Abstract

The purpose of the article is to consider the actual problems of determining the role of intangible assets in the process of banks' activities in order to increase their capitalization, providing banks with the possibility of long-term sustainable development in the information and digital economy. The relevance of the research topic is associated with a significant gap between the market and book values of banks, which is mainly caused by the non-recognition and underestimation of their intangible assets on their balance sheets, which significantly affect the capitalization and potential development of banking institutions. The main method of research was to study the theoretical and methodological aspects of intangible assets of banks by means of logical and comparative analysis of scientific research on the genesis of the role of intangible assets in the market value of companies. As a result of the study, it was concluded that intangible assets are an indicator of technological development of banks, reflecting the innovative orientation of their activities. The main problems in this area are related to uncertainty, riskiness and valuation of intangible assets of Ukrainian banks. Ukrainian and international banks that have undergone mergers, acquisitions or have been acquired by other banking institutions note that intangible assets and goodwill were a significant component of their market value. In developed countries, investments in intangible assets are growing much faster than investments in tangible assets, which is characteristic of the information and digital economy. Ukrainian companies and banking institutions invest a very small share of their resources in intangible assets, not realizing the potential competitive advantages from their use. The information provided in the reports of most Ukrainian banks is not true, as they do not separately indicate intangible assets, because it is not always possible to correctly identify and determine their value. Studies using economic-mathematical modeling methods confirm a positive and significant relationship between intangible assets and financial performance of banks, measured in ROA and ROE, so intangible assets of banks are important drivers of future growth of banks, as well as one of the key sources of their competitive advantage in the market. The practical value of the article lies in the ability of banks to use investments in intangible assets to increase their capitalization and gain competitive advantages in the current economic environment.