FINANCIAL PERFORMANCE MANAGEMENT OF A BANK IN TIMES OF MARTIAL LAW
Abstract
The article is dedicated to the crucial aspects of defining a bank's financial activity in times of a state of war. The components of the financial results management system of a commercial bank have been identified, and their descriptions provided. The author's perspective on the purpose, tasks, and principles of managing the financial results of a commercial bank is outlined, with their content substantiated. A functional system for managing the financial results of a commercial bank has been developed, integrating the functions of both the management subsystem and the controlled subsystem. The process of managing the financial results of a commercial bank has been analyzed, and the stages at which this process is implemented have been identified. The paper analyzes and systematizes factors influencing financial outcomes. A distinctive feature is the necessity of establishing a specialized organizational unit in financial management responsible for overseeing the financial indicators of the company. An approach to defining the essence of the economic mechanism for managing the financial results of a bank has been proposed. The theoretical foundations of its functioning have also been developed, along with an algorithm for implementing this mechanism in the activities of industrial enterprises, taking into account new methodological tools to ensure its optimal operation. The impact of threats and risks on the bank's financial results is examined, taking into account the sensitivity of banks to changes in economic, financial, and political environments. The possible consequences of military conflicts, which may lead to a deterioration of clients' creditworthiness, are highlighted. It is argued that this could result in an increase in the number of insolvent borrowers and the bank's losses, as well as the cessation or reduction of economic activities, affecting the profitability of enterprises and their revenues, which serve as a source for loan repayment. The significance is highlighted that in a highly dynamic environment, the banking sector emerges as one of the fastest-growing sectors in the Ukrainian economy, and effective management of its financial results is acknowledged as one of the key factors contributing to this accelerated development.
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