Information on the thesis

Thesis  for  the  Candidate  Degree  in  Economic  Sciences.  Specialty  08.00.08.  –
Money, Finance and Credit. – Ivan Franko National University of Lviv. – Lviv, 2016.
In  this  thesis  theoretical  and  methodological  principles  and  practical
recommendations  for  improvement  of  financial  mechanism  of  bank’s  capitalization  in
Ukraine in current economic conditions are elaborated.
A methodological approach was applied to understanding the economic essence of
financial  mechanism  of  bank’s  capitalization  through  the  prism  of  its  constituent
categories  such  as  bank  capital  and  bank  capitalization,  as  a  result  the  financial
mechanism of bank’s capitalization was interpreted as a system of interrelated elements
influence on the amount of bank capital in the management, planning and providing the
processes  of  capitalization’s  stimulation  to  improve  the  stability  and  reability  of  bank
activity, a classification of capitalization was selected, a structural and logical scheme of
financial  mechanism  of  bank’s  capitalization  was  improved  in  system-based  research
process  of  financial  mechanism  for  capital  adequacy  and  indicators  of  bank’s
capitalization process were systematized.
Main  trends  of  capital  adequacy  providing  of  domestic  banks,  development  of
foreign  capital  and  processes  of  consolidation  in  the  Ukrainian  banking  system  were
revealed during current state analyzing of  bank’s capitalization, the efficiency of budget
funds allocation for refinancing and recapitalization of banks in Ukraine was assessed,
the inexpediency of share capital increase by state funds in bank’s activity it there are
losses was justified, because in this case the funds will be used to repay liabilities, rather
than providing profitable work of financial institution.
Theoretical  and  methodological  principles  concerning  increase  of  the  level  of
mechanism  of  bank’s  capitalization  based  on  management  of  bank  expenses,
reorganization processes of domestic banking system and scheme of banks grouping into
four categories based on results of stress test conduction were justified. In particular, the
first  group  includes  banks  and  its  indicators  of  financial  stability  and  reliability
correspond  to  recommended  values  and  reflect  their  positive  dynamics,  the  second
group – problem banks with a negative trend indicators and which are not able timely
and  fully  pay  its  obligations,  which  are  recommended  to  capitalize  at  least  25%  by
owners funds and the rest by converting deposits in preferred shares, the third group –
insolvent  banks,  which  are  recommended  to  capitalize  required  amount  by  100%,
otherwise – mergers and acquisitions processes of other participant by a decision of the
NBU and the fourth group – hopeless banks, capitalization of which is highly risky and
its economic expediency is questionable. Dependence between domestic bank’s amount
of net income (loss) and amount of general administrative and other operating expenses,
and  allowances  for  provisions,  and  risk  weighted  assets,  also  dependence  between
amount  of  past-due  indebtedness  and  amount  of  bank  capital  was  proved  by  using
econometric modeling.
Key  words:  bank,  bank  capital,  capitalization,  financial  mechanism  of  bank’s
capitalization, National Bank of Ukraine, international standards, past-due indebtedness,
competitiveness.