ASSESSMENT OF THE ADEQUACY OF BANKS' OWN CAPITAL IN THE PERIOD OF CURRENT CHALLENGES AND THREATS

Abstract

The article examines the impact of destructive events in the country's economy on the formation of the resource base of banks. The need for constant monitoring and assessment of the adequacy of the own financial resources of banking institutions in order to ensure their stable operation has been proven. The composition of banking resources and the dynamics of their formation were studied. The effectiveness of the formation of the resource base of banks over the past five years has been analyzed. The influence of negative macroeconomic trends on bank resources has been proven. It was emphasized that the current state of the domestic banking system in the conditions of a full-scale war requires constant monitoring of the main indicators and norms of banking activity. It is necessary to ensure a timely response by the regulator and an individual bank to a decrease in the stability of a banking institution and to take the necessary measures for its restoration. Under this condition, the need to study the resource base of domestic banks becomes particularly relevant. The article analyzes the components of regulatory capital and investigates their dynamics. Trends in the formation of regulatory capital have been assessed. An explanation of the reasons for the decrease in the growth rate of regulatory capital in 2022 has been provided. It has been proven that financial results also affect the amount of equity capital. With this in mind, the dynamics of the financial results of the banking system of Ukraine are highlighted, the factors that had an impact on the financial result are analyzed. It has been proven that, despite the military actions on the territory of our country and the loss of property by banks, banks made profits, which indicates the high quality of bank management. The work emphasizes that the stability of the banking system is ensured to a certain extent by banks' compliance with capital standards. In this way, the function of managing the banking system at the macro level is realized. In the work, the assessment of the results of such management was carried out using the analysis of banking regulations. The negative dynamics of some capital standards were revealed. Coefficient analysis of financial stability indicators also proved some decrease in the stability of the banking system. Despite a slight decrease in financial stability, the banking system of Ukraine remains stable, and this is a positive result of the management and regulation of banking activity, given the macroeconomic circumstances that have developed in connection with the war on the territory of our state.