MANAGEMENT OF DEPOSIT RISK IN BANKS

Abstract

The article examines the essence, management mechanism of deposit policy, and the main challenges of deposit risk faced by the Ukrainian financial sector during the ongoing military conflict. The importance of the topic is driven by the need to adapt the banking system to the new realities of war. The study analyzes trends in the development of the deposit services market in Ukraine, the impact of deposit risk on banking activities, and the challenges of managing deposit risks at the current stage of the Ukrainian banking sector's development. Approaches to managing deposit operation risks are highlighted. The analysis reveals the dominance of short-term deposits in the structure of banks' liabilities and a trend of increasing foreign currency deposits in the deposit portfolios of Ukrainian banks. The dynamics of bank deposits in Ukraine are presented by currency and maturity. A systematization of measures for managing traditional banking risks is proposed, along with recommendations for improving the efficiency of managing traditional and deposit-related risks in Ukrainian banking institutions. In particular, the implementation of digital tools and mechanisms that support remote services can become a key factor in ensuring the continuity of financial services. The purpose of the article is to study the theoretical foundations of deposit risk in banking activities, identify key factors influencing its occurrence, and analyze the impact of this risk on the financial stability of banking institutions. It aims to develop methodological approaches for identifying, quantitatively assessing, and managing deposit risk, taking into account modern challenges in the banking sector. Additionally, the article seeks to propose effective tools, strategies, and practical recommendations for minimizing deposit risk, tailored to the conditions of the Ukrainian economy and changes in the global financial environment. The relevance of the topic in the current conditions of financial market instability, increased competition in the banking sector, and changes in the regulatory environment makes the issue of deposit risk management crucial. Deposits are one of the key sources of resources for banks, and their volume and structure significantly affect the liquidity and financial stability of the banking system. The importance of this issue is further heightened by the need to ensure public and business trust in the banking system, which largely depends on the effectiveness of deposit risk management. Studying this issue will contribute to enhancing the resilience of banks to financial shocks and optimizing their resource base.