Due to the imperfect state of transformations in the financial system of Ukraine and the banking sector, there is a steady tendency to increase the number of financially insolvent enterprises in various industries. This is especially true for the banking market, where considerable qualitative and quantitative changes have occurred recently. The purpose of this study is to investigate the problem of managing the of banking institutions by diagnosing the transparency level of their activities. The research methodology lies in forming a system of indicators to estimate the transparency level of business entities’ activities, assessing the level of direct impact on the level of transparency, and classifying business entities according to a two-level system of factors influencing transparency. The final stage of the methodology is the positioning of banks according to transparency level to formulate vectors for improving transparency management policies. The combination of multidimensional analysis methods, namely applied econometric methods, cluster and variance analysis, allows classifying business entities according to the transparency level, considering differentiation. The result of the differentiation is a matrix of positioning the transparency level of banking institutions according to a two-level system of factors. The proposed scientific and methodological approach to calculating the transparency level of a business entity, namely banking institutions, which, apart from the financial block, includes other criteria, enables a much broader study of the state of activity of the business entity. The use of this scientific and methodological approach helps reduce the level of information asymmetry, increase the flexibility of the business entity’s response to external shocks, which increases confidence in business entities, improves their business reputation and is certainly reflected in financial indicators. Positive improvements in the financial performance of individual business entities, increasing the flexibility and trust in them, will help increase the transparency of financial flows that move in the country.
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