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Strategy and Tactics of Bank Capital Assessment

Posnaya, E.A., Vorobyova, I.G., Ditsulenko O.I., Kaznova and M.I.

International Journal of Economics & Business Administration (IJEBA), 2019, vol. VII, issue Special 2, 393-399

Abstract: Purpose: The article deals with the the development of strategic and tactical measures aimed at an effective estimate of banking institutions’ capital volume by using a selective model. The result of evaluation from the capital factor is important for banking institutions, because it allows to determine more qualitatively the risk of bankruptcy. Design/Methodology/Approach: Strategies and tactics developed by evaluation using a selective model are important for a qualitative assessment of the banking institutions’ capital. The strategic direction of research for the purpose of monitoring the implementation of the program by the Central Bank for the commercial banks is to offer selective model that contains the ratio of liquidity, risk, relative and absolute levels of equity, the reliability of the bank and the extent of the bank information technology equipment. Findings: A link reliability values of parameters of the banking institutions with the calculated values of the bank capital factor, namely the banks analyzed by the criterion of the probability of bankruptcy and situational correction bank financial policy is found to carry out an accurate assessment of the bank capital. Practical Implications: The results can be incorporated into the activities of banking institutions with the aim of strengthening the position of financial stability and the reliability of the bank institution. Originality/Value: The main contribution of this study is that the timely action taken as a result of the settlement of the developed selective model will reduce the number of bankruptcies which will have a positive impact on the economy in general and on the functioning of the banking institutions in particular.

Keywords: Bank capital; reliability; capital factor; bankruptcy risk; strategy; tactics. (search for similar items in EconPapers)
JEL-codes: F60 F63 O35 O44 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:special2:p:393-399