Open AccessTAXONOMIC ANALYSIS OF EFFICIENCY RAIFFEISEN BANK JSC
Author(s) -
Svitlana Hanziuk,
Kateryna Barbutsa
Publication year - 2021
Publication title -
ìnfrastruktura rinku
Language(s) - English
Resource type - Journals
ISSN - 2519-2868
DOI - 10.32843/infrastruct59-16
Subject(s) - profitability index , capital adequacy ratio , return on assets , net interest margin , return on equity , operational efficiency , business , economics , profit (economics) , finance , microeconomics , marketing
The article is devoted to the study of trends in the efficiency of development of the largest in Ukraine bank with foreign capital JSC Raiffeisen Bank in the context of the taxonomy method. The basic components that ensure the effective operation of the bank are defined as the bank’s profit, return on assets, total profitability ratio, return on capital, efficiency ratio, coverage ratio, return on equity ratio, net interest margin, reliability ratio and multiplier. The proposed scientific and methodological approach to taxonomic evaluation of the development strategy of a commercial bank is a prerequisite for the formation of an integrated coefficient as an aggregate generalization of many features that can be used to respond in a timely manner to changing indicators. A negative tendency to decrease the integrated efficiency indicator of JSC Raiffeisen Bank since 2019 has been identified. This situation is a clear signal to the bank’s management of the need to find new strategic management decisions and review existing management tactics of the bank, as the efficiency of bank management is better the closer the value of the taxonomy ratio to one. At the beginning of the current year, the integral coefficient had the lowest value for the entire analysis period. The best result of the selected bank for analysis fell on the beginning of 2019. Despite the high performance of JSC Raiffeisen Bank in the most difficult for the entire banking sector in 2015–2017, today all indicators of profitability and profitability have a negative downward trend. Stimulators and disincentives for development were identified during the calculations. The disincentives are the efficiency ratio and the bank’s capital multiplier; all other indicators are defined as stimulators of the bank’s development. The results of the study demonstrated the applied value of the taxonomic method in diagnosing the efficiency of a banking institution. Taxonomic analysis allows us to assess the effectiveness (inefficiency) of banking management based on the calculation of the integrated indicator as an aggregate generalization of many features.