FEATURES OF FORMATION OF THE RESOURCE BASE OF BANKS OF UKRAINE

Abstract

In the article the features of formation of resource base of banking institutions are investigated. The dynamics and current state, as well as the conditions for the formation of resource provision of banks in Ukraine are analyzed. The role of funds of individuals and legal entities in forming the resource base of the bank is determined.

Effective functioning of the bank is possible only with the availability of an appropriate resource base, which helps to achieve the main goal of banking activity, which is to minimize costs and maximize profits through active and passive operations. For most banking institutions, sufficient resources provide the ability to maintain liquidity, solvency, reliability, profitability, as well as to neutralize certain risks specific to the banking sector.

The formation of commercial banks’ resources in a sufficient amount is of great importance for the effective operation of banking institutions and the development of the banking system as a whole. Having sufficient financial resources allows you to carry out active banking operations in order to obtain the maximum level of profit and differentiation of risks. The main of the active operations of commercial banks is lending to economic agents, including long-term ones. Long-term loans can only be provided by financially stable banks that have the ability to seize the available resources for a long time.

Today, the formation of the resource base of commercial banks is one of the most important tasks for ensuring economic growth. The banking system must have a set of resources sufficient to lend to current needs of economic entities, as well as to finance investment activities, to create appropriate reserves and maintain its own liquidity. The volume of financial resources determines their demand in the financial market and directly affects the size of interest rates in both passive and active operations.

The structure of the resources of commercial banks is individual and depends on the degree of their specialization, the peculiarities of their activities, the state of the market of credit resources and other factors. For the transition of the Ukrainian economy to a new state, a significant increase in both the capital of the banking system and resources in general is required.

 At the initial stage, the acceleration of the current liabilities should be accelerating as a result of the development of entrepreneurial activity, and subsequently, with the increase of incomes both business entities and the population, the structure of borrowed funds will change with the increase of the share of time resources, first of all deposits of the population. This consistency should provide Ukraine and its banking system with a self-sufficient resource base for economic growth.

So, after analyzing the formation of resource provision of banks in Ukraine, the role of deposits in the formation of the bank’s resource base is determined. Since population deposits are the cheapest source of attracted banks, it is important to implement and extend the practice of cashless settlements between individuals and to realize such a function of money as accumulation through investing them in accounts with banks. At the same time, it is important to overcome the distrust of the banking system by the Ukrainian population, which will help improve the market conditions for the effective functioning of banks.