INFORMATION AND METHODICAL SUPPORT OF THE BANK FINANCIAL SECURITY EVALUATION

• Main Authors: І. Medvedieva, M. Pogosova
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2013-12-01
• Series: Економіка розвитку
• Subjects: state of financial security; management of the bank financial security; alarm indicators; primary indexes; information base; identification of threats
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/ee134_68/e134med.pdf

In conditions of national safety development in the financial sector special attention should be paid to information maintenance of management of the bank financial security, which must meet the requirements of relevance, completeness, and at the same time, not to be excessive, but sufficient for timely decision-making to prevent and neutralize the threats to the financial security of banking institutions. The aim of the article is to develop methodical approach to the determination of indices combination that can be used as a system of alarm indicators, which highlight the emergence of threats to financial security of banking institution. To determine the opportunity to use a certain combination of indices characterizing the state of financial security (primary indicators or characteristics) as a system of alarm indicators the method of factor analysis was used. To implement the procedure of factor analysis the following conditions were taken as the input: the level of financial security of a bank as a phenomenon; the state of financial security by years as an object; set of indices of financial security level as the characteristics. The essence of the hypothesis is: if the dispersion of financial security levels of a bank for different years is not significant, i. e. the harmonious development in the dimension of the dyna­mics of respective indexes, then such combination can be used as a base for the formation of alarm indicators system. The changes in their values will notify the existence of threats to the state of the discovered phenomenon. According to the results of factor analysis, the one factor was formed. The value of this factor relatively expresses the correlation between the states of the financial security of the Bank for years. However, it is reasonable to check if there were parameters which either were in the imbalance with others or did not change their value. Those indices therefore can not be used as indicators. This test was conducted using multivariable statistical method of cluster analysis. According to the results of cluster analysis, the imbalance between the clusters was the root of significant differences of the finan­cial security of the bank in 2009 from its dynamics in 2010 – 2012, which was mar­ked and defined by a factor analysis. The use of proposed methodical approach will improve the support information base of decision-making process through the formation of the alarm indicators system. Such alarm indicators system can be used as the input for creating the maps of the bank financial security threats.