Anti-crisis manageent strategy of cash flows of the interest business of banks

Kovalenko Victoria
D. Sc. (Economics), Professor, Professor, Department of Banking, Odesa National University of Economics, Odesa, E-mail:kovalenko-6868@ukr.net, ORCID ID: https://orcid.org/0000-0003-2783-186X

Cite this article:

Kovalenko V. (2024) Anti-crisis manageent strategy of cash flows of the interest business of banks. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Stratehiia antykryzovoho upravlinnia hroshovymy potokamy protsentnoho biznesu bankiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 1-2 (314-315), pp. 57-69.

Abstract

The article substantiates that the Bank of Ukraine is currently in a state of crisis. This is caused by the phenomena that have been observed in recent years, political instability and military aggression, inflationary processes and general economic destabilization in relation to the performance indicators of banks located on the territory of Ukraine. The goals of writing the article are the formation of a strategy for anti-crisis management of cash flows of interest business of banks. The proposed system of anti-crisis management in banks, which provides for the consideration of such subsystems - the subsystem of legal support, information and analytical support, and organizational and management support. Emphasis is placed on the fact that the subsystem of information and analytical support needs detailing, which, with the help of the selection of tools to provide relevant information to the anti-crisis system of cash flow management of interest business of banks, will allow to reduce the level of subjectivity in the process of making and implementing management decisions. The article analyzes the structure and dynamics of revenues and expenses of Ukrainian banks. It has been proven that interest income and expenses occupy the largest specific weight in their structure. It has been proven that the credit channel of banking activity has the greatest influence on the formation of interest income. It was established that there is a sufficiently substantiated empirically causal relationship between interest expenses from transactions with non-financial corporations and households from certain categories of interest income, namely interrelationship and dependence. Correlation-regression analysis was used to establish such a relationship. It was concluded that the anti-crisis management of cash flows of the interest business of Ukrainian banks is facing a challenge, which is connected with the strategic nature of the structure of active operations, which developed during the period of the introduction of martial law in Ukraine. Based on the fact that the portfolios of banks are dominated by investments in securities, and the income received from them is the basis of balancing the incoming and outgoing cash flows from the interest business, the main task of the corporate management of banks is to find alternative sources of interest income that can compensate for the sudden stop of coupon income from state. The article identifies the main weaknesses and strengths of the global foreign exchange market. Based on the analysis, it is established that the international foreign exchange market in its current form reflects the real demand and supply for different currencies. Sharp fluctuations in it during the crisis reflect the usual behavior of its participants, who invest in the currency - asylum, and real supply and demand, caused by the fact that investors withdraw from transactions using borrowed funds. Thus, the foreign exchange market is actually functioning normally. Summarizing the article, it can be argued that in the future, it is necessary to develop strategic plans for anti-crisis management in domestic banks in the direction of diversifying the spectrum of active operations, first of all, due to the diversification of subjects and areas of providing credit services.

Keywords

anti-crisis management, banking system, banks, cash flows, expenses, income, interest banking business.

JEL classification: E500; E520; G180; G210; DOI: https://doi.org/10.32680/2409-9260-2024-1-2-314-315-57-69

UD classification: 336.71:65.012.12

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