Anti-krisis financial management of banks on example stalemate of “Brokbiznesbank”

Автори: 
Kondrat I.Yu., Topiy I.I.

The economic and financial crisis in Ukraine today increasingly exacerbate the situation
of all entities both enterprises of different scales and insurance companies, credit unions,
investment funds, banks and so on. Functioning of the economy of any country can not be
imagined without efficient banking system. Banks deeply penetrate into the sphere of
production and actively influence the economic and social processes in the country. For a long
period of banking institutions activity has been unstable and it gets worse every year. The
main destabilizing element of home banks is their liquidity, which decreases each passing day,
causing panic among the population, which in turn leads to an outflow of deposits from the
banking system. Also, banks have significant challenges associated with managing their
problem assets. All these destabilizing factors negatively affect the financial stability of
individual banks and the banking system as a whole. In addition, the crisis leads to a reduction
of the number of jobs and, consequently, deprive people of livelihood. That is why particularly relevant today there are anti-crisis measures, which will be used to stabilize the economic
situation in the country and to improve the financial stability of banks and other entities.
The purpose of this article is to outline the nature and features of anti-crisis
management financial banking institutions to develop specific anti-crisis measures of
management distressed bank assets and to apply them to the activity of PJSC
"Brokbiznesbank".
To date, no consensus among scientists about the nature of anti-crisis management has
not happened. In particular, they have different definitions of essence of anti-crisis
management bank. Thus, O. Dzyublyuk, Yu.Rebryk, I. Blank consider anti-crisis management
as a process, whereas V. Kovalenko, A. Kruhmal, V. Shpachuk, W. Wolf, M.Bas understand it
as a set of activities. However, despite this, both a process and a set of measures are aimed at
preventing, monitoring and recovery.
Anti-crisis management in foreign literature is mainly considered as external control,
that is to involve crisis management professionals from abroad, while home scholars
emphasize its external and internal components. In V.I.Kostohryz’s opinion, there are three
types of anti-crisis management: pre-crisis; management in times of crisis; management
processes to overcome the crisis, each of which can be carried out both by internal and
external experts.
Thus, the bank anti-crisis management can be defined as a set of tools and measures of
the legal, organizational and financial nature, which are aimed to identify and prevent crises in
the bank's activities, restoration of its liquidity, solvency, competitive position.
Analysis of home and foreign literature showed a wide range of factors destabilizing the
banking sector, highlighted by scientists and allowed to distinguish their own, ones including
the following: deterioration in asset quality, particularly increase of the share of "non-
performing" assets, reducing of emergency bank liquidity, significant costs of banking
institutions directly concerning both their operations and functioning of the administrative
apparatus, neglecting qualitative assessment of the creditworthiness of bank borrowers, late
NBU reaction to banks loss of their solvency, increase of banks systemic risk.
To improve the financial condition and remove it from the crisis we suggest the
following measures: to change the repayment provisions of problem loans, the sale of bad
loans, carring out the bank capitalization, restructuring of its assets and liabilities. Primary
role in anti-crisis management plays a banks troubled asset management. The most effective
and efficient management can ensure the stability and reliability of both the first and the
second levels of the banking system of Ukraine.
Thus, in modern economic conditions the anti-crisis bank management system effects
essentially the restoration of financial firmness and solvency of both every individual bank and
the stability and effectiveness of Ukrainian banking system function in whole. The perspective
direction of future investigation will be the distinction of anti-crisis management factors of
bank finances and working out means of their elimination.