There has been investigated the evolution of views on assessing the adequacy of the bank's capital and supervisory requirements for its definition. The definition of the bank's capital, adequacy of the bank's capital and market uncertainty has been clarified. The essential characteristic of the concept of the bank capital has been considered through the prism of capital functions, which are the most appropriate during the period of economic fluctuations. It has been justified that during periods of market transformations, the function of ensuring confidence in the bank is of primary importance in the bank's activities.
Prerequisites and methodological foundations of determination and regulation of the bank capital adequacy in conditions of market uncertainty have been described; existing approaches to estimation of main elements of calculation of the capital adequacy ratio have been disclosed. It has been established that the legal framework for international regulation of capital adequacy was formed as a reaction to the failure by means of individual supervision to monitor the stability of financial institutions during times of crisis and stress.
The regulatory capital and the quality of assets have been assessed as the main components of the calculation of the bank's capital adequacy ratio. An analysis of the dynamics of the main indicators characterizing the capital structure of banks of Ukraine, compliance with capital standards and riskiness of assets has been carried out. It has been established that banks have formed a sufficient level of reserves for non-performing assets and are gradually reducing the share of distressed debt, and the coverage of non-performing loans with reserves is at an acceptable level in accordance with international standards.
The modern structure of capital adequacy requirements has been described. An analysis of the formation of the legislative framework by the national regulator has been carried out and the evolution of approaches to the normative determination of capital adequacy of banks in domestic practice clarified. The quality of the loan portfolio of domestic banks has been analyzed, the dynamics of its development has been evaluated and changes in its composition have been revealed. New supervisory instruments have been investigated, which are based on the assessment of risks and the quality of their management in the bank.
It has been proposed to introduce the 1st stage to implement the risk-oriented foundations of supervision, and the method of calculating capital to cover operational risk which is based on the definition of the business indicator of gross income (BI) for the purposes of domestic banking practice and the limit indicator α, the size of which is set depending on the value of the business indicator.
The directions of ensuring a qualitative assessment of the bank's capital adequacy in conditions of market uncertainty, the advantages of improving modern approaches to assessing the capital adequacy of the bank taking into account international approaches, modeling the size of the bank's capital adequacy to cover risks in conditions of market uncertainty have been justified, proposals are made to implement the concept of internal capital adequacy assessment (ICAAP), on the development of a map of the annual cycle of the bank's internal capital adequacy assessment process, which contributes to the systematization and structuring of its components, which will protect financial institutions from mixing and/or falling out of certain stages of the process.
Keywords: capital, bank capital, central bank, bank capital adequacy, banking system development, regulatory capital, operational risk, concentration risk, ICAAP, SREP.
