INNOVATION DEVELOPMENT BANKING SYSTEM OF UKRAINE ON
THE BASIS OF IMPLEMENTATION OF THE CORPORATE GOVERNANCE PRINCIPLES
Nadiia Maidaniuk, aspyrant,
Kyiv National Economic University named after Vadym Hetman
Analysis
of trends in the world economy in recent years suggests that banking has become
one of the most dynamic components of the world economy [1,2] as globalization,
development of information technologies and growing instability that
characterize the development of the world economy, are particularly well
reflected in the banking sector, which is highly sensitive to external factors.
At the same time, the banking sector increasingly confirms its status as a
basic component of the innovation economy that is able to provide its
efficiency [3, 4]. As shown in [5], the role of the banking system in the
process of innovative change in the economy will continue to grow and in the
future. This necessitates research areas of strategic management and search for
innovative approaches to the development of the banking system.
Study
concept innovation and synthesis of existing scientific interpretations to it
can determine how innovation development process control, based on the
continuous search for and use new ways and areas to realize the potential
economic object selected by mission and adopted motivating activity in changing
environmental conditions. Hence, the process of innovation must be considered
from the standpoint of a particular entity in the interaction with other actors
who are directly involved in all stages of the structure of its specific
activity.
Define
the innovative development of the banking system as a process of structural
improvement of the banking system, which is achieved mainly through the
practical application of new knowledge to improve the quality of banking
services, enhance the protection of bank information, improving the
competitiveness of banks and, as a result, the banking system as a whole.
In [6]
the author analyzed and identified the following key areas of innovation
activities in banking sphere: financial, technological, organizational and
structural.
Implementation
of corporate governance in practice of domestic banks is aimed at ensuring of
banks to international standards of financial and banking institutions,
transparency of decision-making mechanisms, protecting the rights of
shareholders and bank employees, and to ensure the effective functioning of
banks.
Under
the system of corporate governance, we mean a system that determines the
distribution of rights and responsibilities among different participants in
corporate interaction, such as the Board, managerial staff, shareholders and
other stakeholders. The corporate governance defines the rules and procedures
for decision-making on the basis of which is formed the system to set
objectives and goals of the bank, means of implementation of the tasks and
track the results of banking.
In [7]
the basic principles of effective implementation strategies of corporate
governance are defined:
-
Control of the business must be carried out by interested parties;
-
Public statements should be open and reliable as much as possible;
-
Regulation of managerial influence from senior management;
- The
balance of the Board of Directors;
- A
rigid approach to the formation of the government;
-
Formation of rigid independent element on the Board;
-
Effective monitoring of the activities of management by the Board;
-
Competence of members of corporate interaction;
- Risk
assessment and control;
-
Necessary to have an audit.
- Note
that corporate governance are called control statements and control structures
based on risk management and effective monitoring system. The main components
of corporate governance - governance, risk management, control create a unified
corporate space that supports the efficient operation of the bank and responsibility
to stakeholders (stakeholders).
Thus,
the essence of the implementation of corporate governance is not in control
over the functioning of the bank and the strengthening of higher supervision, but
to provide effective support for the process of decision-making. It is these
principles that should guide the construction of corporate governance in banks.
The defined
list of innovation activity is regulated by a set of innovative management
development bank. Innovation provides a range of management planning and
budgeting processes of innovation development, promotion and motivation of
staff, monitoring the implementation of innovations, information innovation
process, managing organizational and economic development.
Management
of innovation development of the banking system can be carried out at the macro
level (NBU public administration) and the micro level (commercial banks).
At the
microeconomic level innovations serve as the material basis for improving the
efficiency of banking activities - development of new technology and banking
products based on banks' own research, improving the quality and
competitiveness of banking services and reduce costs.
At the
macroeconomic level, a new innovative model of the banking system is formed,
which is a consequence of the transition to the dominance of the banking
industry items such as information and communication technology, external and
internal transfer of innovation.
Implementation
of banking innovations can improve the productivity, efficient use of
resources, increase profits, reduce costs and, consequently, increase the
competitiveness of banks and the banking system and to ensure their sustainable
development in the global economic environment.
Therefore,
the primary objective of many Ukrainian banks today is compliance with
corporate governance principles and develop corporate relationships that will
enhance the stability of the banks to strengthen their reputation, more
efficient allocation of credit between non-financial companies and more. This,
in turn, have a positive impact on the economy of Ukraine.
References
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