BANK'S FINANCIAL RESULT: INFLUENCE FACTORS

Abstract

The study aims to justify the importance of identifying the factors that affect the formation of a bank’s financial performance, while considering the specific features of changes in the central bank’s regulatory instruments and their application in strategic planning. The relevance of this research is due to numerous factors influencing banks’ financial outcomes that are often insufficiently considered during the development of strategic plans, as well as the continued presence of loss-making banking institutions within the reporting period. To achieve the objectives of the study, a traditional methodological basis of the systems approach was employed, focusing on the assessment of both external and internal environments of the banking system. Analytical methods such as analysis, synthesis, comparison, and analogy were applied to determine the impact of internal and external factors on the banking sector. In addition, graphical techniques were used to illustrate the influence of external factors on Ukraine’s banking system. Classification methods and logical generalization were also utilized to identify patterns in the evolution of the theory of banks’ financial performance. The nature of the relationship between bank expenses and income with profitability indicators of various types of banking institution activities was clarified. It was established that the expenses and income of Ukrainian banks tend to change their structure depending on the state of the country's economy and its position relative to the economic development cycle. Especially in crisis and post-crisis periods. The importance of identifying regulatory factors as external factors within the framework of a systematic approach to assessing the financial performance of a banking institution has been substantiated. The nature of the impact of the National Bank of Ukraine's standards on bank profits has been determined, taking into account changes in their composition and significance. The practical significance lies in the possibility of using regulatory factors for strategic planning of bank activities and clarifying existing strategies for changing central bank instruments.