The dissertation presents the solution of an important scientific and practical task to substantiate theoretical and methodological statements, to develop methodical approaches and practical recommendations for improving the state regulation of financial recovery of banks in Ukraine.
The paper develops the categorical-conceptual apparatus of the theory of financial recovery. In particular, it is proposed to interpret the term “financial recovery of a bank” in a narrow and broad sense under the process approach, emphasizing that its main goal is to achieve long-term financial stability, capital adequacy and profitability. It is developed the scientific approaches to systematization of essential features of financial recovery of the bank and its characteristics according to the following criteria: content, form of manifestation, economic and legal process, perspective orientation, determining factors, sources of financing.
As a methodological basis for the financial recovery of the bank it is identified a strategic approach, highlighting the defensive and offensive strategies and justifying the features of their application in terms of stages of the life cycle of the bank. The typology of financial recovery of banks are proposed to be classified in to three groups: preventive; financial recovery in the context of the bank’s internal corporate crisis and post-crisis.
A theoretical model of the system of financial recovery of banks has been formed, the main priority of which is to ensure their financial stability. Within the framework of the proposed system it is substantiated: its subject-object environment; functions (redistributive, preventive, planning, stimulating, social, controlling and stabilizing); principles of its functioning at the micro and macro levels; the content of the subsystems of banks’ financial recovery. Substantiation of the content and structuring of methodological tools for financial recovery of banks by distinguishing external and internal instruments in terms of financial, operational, structural, marketing and analytical varieties have been developed.
Scientific provisions on the methodology of state regulation in the system of financial recovery of banks are developed, namely, the defining features of objects of the system of financial recovery and determinants of operational vectors of state regulation in the context of financial recovery are outlined. They are distinguished across the cycles of economic activity as follows: “economic boom”, “economic downturn”, “economic / financial crisis”, “economic recovery” and “economic growth”. It is grouped the instruments of state regulation of financial recovery of banks in terms of monetary (economic) and non-monetary (indicative, administrative, organizational, managerial and regulatory) methods. Also it is defined the principles of state regulation for the effective and efficient financial recovery of banks. Theoretical statements on the institutional environment of state regulation in the system of financial recovery of banks in terms of institutions of direct and indirect influence in the implementation of measures for preventive, crisis and post-crisis financial recovery have also been developed.
A comprehensive assessment of the peculiarities of domestic practice of state regulation in the system of financial recovery of Ukrainian banks allows, on the one hand, to state a significant improvement of institutional support for this system since 2015 and an objective increase in financial stability of Ukrainian banks. At the same time, on the other hand, it is found that currently the functionality of the institute of financial recovery of banks is largely aimed at minimizing financial losses of creditors and depositors, as well as financial costs of
the state due to bank’s resolution. It is deepened the causal links between changes in institutional support and the level of financial stability of the banking sector as the main priority of this system due to assessment of the current transformation of the domestic financial recovery system in terms of monetary and non-monetary methods of government regulation. Special attention in the dissertation is devoted to the study of the impact of monetary instruments on the effectiveness of measures for the financial recovery of banks. The need to promote the resumption of economy lending has been identified as the most important vector of monetary methods of state regulation in the framework of preventing the financial fragility of domestic banks.
Key words: bank, banking sector, state regulation, financial recovery of banks, system of financial recovery of banks, monetary methods of state regulation, non-monetary methods of state regulation.
