METHODOLOGICAL PRINCIPLES PREVENT BANK’S BANKRUPTCY

Abstract

Purpose. Reasoning and development of scientific and methodological approaches to the diagnosis of a bank’s bankruptcy, focused on the current state of Ukraine's economy. Methodology of research. In research process been used the following methods: analysis and synthesis, induction, deduction - to analyze the efficiency of the banking activities and assess the level of risk; formalization and comparison - for determining indicators of profitability of assets and capital of the bank Theoretical and methodological basis of this analysis is the work of foreign and domestic scholars on the prevention of bank failures. Findings. Considered the basic models and mechanism for predicting bank failures and its basic components, identifies the key requirements that apply to the process of diagnosis, compared Altman model and factor model corporation "Dupont" based on indicators of JSC "Raiffeisen Bank Aval" and substantiates the use Dupont model system for early diagnosis of bank failures. Originality. Substantiated inefficiency of using foreign models predicting bank failures in economic conditions of Ukraine and proved the feasibility of applying decomposition analysis of the corporation "Dupont" in the context of preventive banking regulation. Practical value. Offered a schematic representation of logical-structural model of factor analysis efficiency of the bank that focuses on commonly used in domestic practice approaches to grouping banking income and expenses. To practically demonstrate the importance of this methods diagnosed the bankruptcy of JSC "Raiffeisen Bank Aval" by Dupont’s model and one from foreign models (Altman). During calculation detected that the factor analysis is more accurate.