Development of bank business models in Ukraine according to legally established criteria

Onyshchenko Yulia
PHD in Economy, Associated Professor, Associated Professor of Banking Department, Odessa National Economic University, Odesa, E-mail:yulia51984@gmail.com

Dzhusenko Тetyana
student of the Faculty of Finance and Banking, Odessa National Economic University, Odessa, E-mail:ydjusenko98@gmail.com

Cite this article:

Onyshchenko Y., Dzhusenko Т. (2021) Development of bank business models in Ukraine according to legally established criteria. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rozvitok biznes-modelej bankiv Ukrayini vidpovidno do zakonodavcho vstanovlenih kriteriyiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 49-55.

Abstract

Introduction.Legislative support does not even pay attention to the interpretation of the concept of business model of the bank, which complicates the possibility of using this management tool in the activities of banks. At the same time, the development of the concept of the bank's business model requires the formation of clearly defined legislative criteria for their use in the implementation of banking regulation and supervision, which are currently lacking. Purpose.The purpose of the study is the substantiation of the development of business models of banks in accordance with statutory criteria. Results. According to the results of the analysis of approaches and financial reporting of banks, periods of change in the division of banks into groups were identified, which allowed to justify the following stages: post-crisis (2010); the beginning of the reform of the banking sector of the economy (2015); modern (2021). In the post-crisis period of its development, banks avoid acquiring the status of specialized and there are a significant number of small banks, which are mostly so-called captive banks. In 2015, there was a reduction in the number of small banks and an increase in their market share. The number of systemically important banks is increasing. The number of savings banks is also increasing, as in crisis conditions, household savings are becoming a priority source of resource base. There are currently 73 banks operating in Ukraine. The share of state-owned banks is declining, but they still concentrate more than half of the net assets of Ukraine's banking system. Conclusions.The structure of the banking system of Ukraine according to the business models of banks is generally aligned. Some groups of banks are becoming more balanced in number and market shares, as well as in the number of systemically important banks. At the same time, the negative specifics of the banking system of Ukraine at the present stage include a significant share of the state in the sector and the share of systemically important banks among state-owned banks. The number and size of assets of specialized savings banks is growing.

Keywords

bank, business model, business model of the bank, savings bank, trust management bank, systemically important bank.

JEL classification: G200, G210, L210, L250

UD classification: 336.713:005.3

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