Экономические науки / 8. Математические методы в экономике

Sergienko O., PhD in Economics, Associate professor,

Chuyko I., lecture, Bilan Yu., student

Kharkiv Institute of Banking of the University of Banking of the NBU,

Simon Kuznets Kharkiv National University of Economics, Ukraine

the MODEL OF Choosing Strategic Priorities of the Commercial Bank’s Financial Security

The choice of the strategy of ensuring financial security is closely connected with the ability to make rational decisions, which stipulates the necessity: to determine the aiml and content of the threat or problem; to determine factors, dependencies and limitations; to collect data within the framework of imposed limits and to carry out their analysis; to find out the most favourable decisions and assess them according to the profitability index; to choose the optimal decision. In the process of choosing a development strategy of commercial bank a lot of different approaches are used, however, a situational approach is the most popular one. The situational approach enables to evaluate and predict the state of enterprise as a system in dynamics. Providing for the devlopmant of scenarios, concerning decision-making on different situations, the situational approach is not directed at managing the organization’s resources within the structured system of objectives.

Thus, in article the dynamics of the development is studied according to the following constituents: the level of banking system development (LBSD), the level of the commercial bank’s security (LCBS), the level of the development of external environmental (IEEF) and of internal environmental factors (IIEF) on the basis of the integral index of the development level, calculated with the method of total reduction of factor (method of taxonomic assessment), which provides for quantitative level assessment of the development dynamics in every sphere as an integral rating index, which generalizes various effects of different factors [1, 2]. The value of the integral index varies from 0-1, the closer the value to 1 is, the higher the level of the banking system development and financial security of the bank is, and the more favourable external and internal environmental factors are [3]. The classification of conditions according to the studied constituents has been developed on the basis of variations of corresponding integral indices, in particular:

1) the level of banking system development (LBSD), has three conditionsgrowth, stability and recession. That is, the index of the level of banking system development has the following gradation and interpretation:

improvement of banking system condition (development or positive changes);

consistency of banking system conditions (stability);

worsening of the banking system condition (crisis or negative changes).

2) the level of the commercial bank’s financial security (LCBS), is classified as high, sufficient, average and low. The work deals with the following groups according to the level of financial stability: 

a high level of the commercial bank’s financial security;

a sufficient level of the commercial bank’s financial security;

a satisfactory level of commercial bank’s financial security;

an unsatisfactory level of the commercial bank’s financial security

3) the level of external environmental factors  (IEEF). The characteristic of the condition of external environment on the basis of the defined scope of impact is interpreted as follows:

an aggressive condition of external environmental factors;

a moderate impact of external environmental factors;

a neutral condition of external environmental factors.

4) the level of internal environmental factors (IEF), constituents of internal environment of the firm directly influence the its performance:

a destabilizing impact of internal environmental factors;

- a neutral impact of internal environmental factors;

- a posistive impact of internal environmental.

The implementation of choice model is based on building a vector of strategic priorities by finding a gravity center of the polygon, built in the corresponding system of coordinates on the basis of the calculated assessments of each studied costituent on the basis of the following algorithm:

1) it is necessary to divide a quadrangle into two triangles, to find a point of medians’ intersection for each triangle, this point is a gravity center of the triangle;

2) on the next stage coordinates of a gravity center of each triangle are found according to the formula:

                                           ,      ,                                 (1)

where ,  - coordinates of a gravity center of the triangle;

             coordinates of apexes of the triangle

3) triangle areas are determined according to the formula:

             ,                (2)

where            the area of the triangle

4) a vector of strategy choice is determined by finding a gravity center of the quadrangle, built in the four-sector systemin accordance with to the calculated assessments of each group of indices according to the formula: 

          , ,                                 (3)

where ,  coordinates of a gravity center of the quadrangle of factual values in the two-dimensional system of coordinates;

      ,   coordinates of a gravity center of each of two triangles in the two-dimensional system of coordinates;

       the area of each of two triangles

5) a vector of strategic priorities is drawn through the center of coordinates and a gravity center, that provides for determing the strategy of the commercial bank, proceeding from the reached development level. Thus, the starategy, which can be ensured subject to any factor, is determined. In the direction, opposite to the vector of strategic priorities, there is a strategy, which should be chosen for increasing the level of CBFS by smoothing the level of factors development. 

The vector of strategic priorities determines the strategy, which is rational for the commercial bank with a current level of development and a corresponding scope of impact of all distinguished factors.

Let’s look at the scenarios of choosing a strategy subject to values of all the calculated constituents, obtained on the basis of building a complex of assessment models and the analysis of structural elements of the financial security [4] on the basis of statistical data  for the First Ukrainian International Bank [5, 6]. Values of integral indices for modeling scenarios of choosing a strategy of CBFS:

The level of banking system development (LBSD =0,25);

The level of commercial bank’s financial security (LCBFS=0,4);

The impact of external environmental factors (IEEF=0,8);

The impact of internal environmenal factors (IIEF=0,3).

Fig. 1 represents quadrangles, built on the basis of the model of choosing a strategy to ensure financial security according to the first scenario. Thus, a vector of strategic priorities indicates, that for the factors from the first scenario, the strategy of innovative changes is a priority for the commercial bank.

Fig. 1. The quadrangle of choosing a strategy to ensure financial security according to the first scenario

Meanwhile, for increasing the level of CBFS by smoothing the level of factors development, the bank should choose the strategy of preventive  counteraction. The implementation of this strategy will enable the bank to increase the level of financial security, and to maintain it on the necessary level, reducing consequences of the impact of external environmental factors.

Thus, the model of strategy choice on the basis of a complex assessment of the level of financial security under conditions of internal and external factors of the commercial bank with the help of the developed model enables to determine directions of money investment with the purpose to increase the level of the commercial bank’s financial security.

Literature

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3.                 Плюта В. Сравнительный многомерный анализ в экономических исследованиях: Методы таксономии и факторного анализа / В. Плюта, пер. с пол. В.В. Иванова; Науч. ред. В. М. Жуковской. – М. : Статистика, 1980. – 151с.

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5.                 Офіційний сайт НБУ – [Електронний ресурс]. – Режим доступу http://www.bank.gov.ua

6.                 Офіційний сайт ПАТ – [Електронний ресурс]. – Режим доступу «ПУМБ» http://pumb.ua/