Development and Justification of Strategy for Ensuring Financial Security of Commercial Bank

DOI

10.2991/aebmr.k.210320.002How to use a DOI?

Keywords

financial strategy, security, methodical approach, gap method, game theory

Abstract

Theoretical and methodological bases of forming the strategy for ensuring bank’s financial security according to the value-oriented approach have been developed and substantiated. The essence of bank’s financial security strategy according to the value-oriented approach has been determined. Scientific and methodological principles of value-oriented strategy forming for ensuring commercial banks financial security have been substantiated. This strategy is considered as a model of generalization of actions to maximize market value of commercial bank, providing effective use of invested capital, financial stability, preservation and increase of assets with prevention of possible risks and protection from existing internal and external threats to achieve key objectives. The main stages of development, substantiation and implementation of bank’s financial security strategy have been identified. It has been established that the choice of bank’s value growth strategy depends on the level of financial security. Assessment of key components of bank’s financial security integrated indicator has revealed that most of the surveyed banks are characterized by low and critical level of this indicator. Components that have the greatest impact on the level of security and bank’s value have been identified. Results of bank’s financial security integrated indicator should be used in the development of bank’s value-oriented strategy. Scientific and practical approach to evaluation of value-oriented strategic decisions to ensure financial security of commercial banks has been substantiated. It has been established that application of these methods makes it possible to quickly identify the causes of deviations from the safe level of bank and take measures to increase the value of banking business.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhyvko Zinaida
AU  - Rodchenko Svitlana
PY  - 2021
DA  - 2021/03/22
TI  - Development and Justification of Strategy for Ensuring Financial Security of Commercial Bank
BT  - Proceedings of the International Conference on Economics, Law and Education Research (ELER 2021)
PB  - Atlantis Press
SP  - 8
EP  - 12
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210320.002
DO  - 10.2991/aebmr.k.210320.002
ID  - Zinaida2021
ER  -