BANK MANAGEMENT REPORT AS A TOOL OF DETINIZATION UKRAINIAN ECONOMY

Abstract

De-shadowing of the economy is one of the highest priorities of public policy, banks, as the largest group of financial intermediaries, are one of the tools to reduce the level of shadow transactions. The European integration vector of development determines the involvement of Ukraine in the implementation of initiatives on sustainable development. Under the Association Agreement, Ukraine should gradually approximate its own legislation to that of the EU by implementing the provisions of Directive 2013/34/EC on annual financial statements, consolidated financial statements and related reports of certain types of companies. This document focuses on the protection of shareholders, participants and third parties through the harmonization of national rules on the presentation and content of annual financial statements and management reports of certain types of limited liability companies. Submission of the Management Report helps to improve the bank's image, develop business reputation, increase customer confidence, ensure transparency and information openness of the business. The main points of the report should cover the economic, environmental, social and managerial aspects of the activity. Their disclosure by banks in the management report will ensure transparency of information on the impact of reporting financial institutions on the economy, environment and society, as well as the identification of possible risks and threats, which is important for building a sustainable state. The article is devoted to the current problems of de-shadowing of the economy through the introduction of a new form of annual reporting – the Management Report. An analysis of the regulatory framework governing the process of submitting the Report on Bank Management was conducted. The audit opinion of the Report is made. The directions of systematization of information, the maintenance are defined. The minimum requirements for the information disclosed in the structure are investigated. The purpose of the article is to analyze the Report on the management of 15 Ukrainian banks of various forms of ownership for complete disclosure and implementation of anti-corruption measures. Test the hypothesis of a link between bank transparency and profitability.