Goncharenko T. Methodology of formation and Realizing of Bank Business Strategy

The thesis is aimed to develop theoretical basis methodology and methodical support for forming and realization of the banks business strategies in Ukraine. The bank's business model should be considered as a formalized result of strategic management, which determines the basic patterns of making key strategic management decisions and should maximize the added value of shareholders simultaneously with control of risks. The bank's business model comprehensively coordinates its chosen business strategy with the components of the management system, is formed under the influence of exogenous and endogenous determinants, ensures compliance of the chosen business strategy with the requirements of banking regulation and supervision and allows achieving defined quantitative and qualitative strategic goals. The results of bibliometric analysis showed the presence of 5 clusters that summarize the context of research on strategic management of banks, as well as 7 clusters – on the business model of banks. In conditions of exogenous and endogenous fluctuations, the strategic management of the bank should be based on the model of cyclical transformation of the banks business model, which is based on the criteria of the bifurcation point, allows to ensure the viability and sustainability of the bank at each phase of its life cycle, takes into account the alternative of business strategies at the bifurcation point under the influence of development attractors. The paper substantiates the determinants of the influence of the external environment on the formation of business strategies of banks through a combination of PEST analysis and the principal component analysis. The proposed methodology for determining the business strategies of banks is based on the methods of cluster analysis and expert assessments, which revealed 15 business strategies used by banks in Ukraine. The study of the relati The study of the relationship between the level of competition in the banking services market and the choices of banks business strategies allowed to determine the list of business strategies of banks chosen due to the competitive environment in the banking services market and to determine the vectors of their transformation. Choice the financial strategy of the bank should focus on the value of the integrated indicator of the financial condition of the bank, which includes blocks of financial stability, liquidity and business activity, profitability, assessed by the coefficient method. According to the results of the taxonomic analysis 85 surveyed domestic banks, none of the banks showed a high level either in the risk management system or in the profit management system. The reserve of unused opportunities to implement business strategies of banks is determined and the endogenous and exogenous natures of the reasons for the bank’s lack of economic benefits in the implementation of its business strategy are identified. The identified areas of improving the economic efficiency of the implementation of business strategies of banks are based on the principles of benchmarking analysis. Modeling of the forecast structure of banks business strategies in Ukraine in the medium term showed the presence of a common vector of their transformation from targeting specialized market segments to diversification. There has been a significant reduction in the share of banks using traditional and investment business strategies. Instead, a significant expansion of the use of the universal business strategy and the strategy of interbank borrowing and expansion is expected. Modeling of the integrated impact of the external environment on the choice and transformation of business strategies of Ukrainian banks showed that since 2014 there has been almost a twofold increase in the impact of external shocks on the functioning of the banking business. The proposed methodology for determining the trajectories of transformation of business strategies of banks depending on endogenous and exogenous determinants of banks on the basis of an integrated indicator of transformation of business strategies summarizes the integrated nonlinear indicators of risk management and profitability in the environment. This allowed substantiating the basic vectors of transformation and tools for optimizing the business strategies of domestic banks.