Конкурентоспроможність Ринку Банківських Послуг України: Фактор Суперництва, Тенденції Та Результати

Abstract

The authors propose a new methodology for the integrated assessment of the competitiveness of Ukraine’s banking services market, which reflects the result and perfection of the competitive interaction of banks and determines the degree of advantage of the set indicators of Ukraine’s banking services market over the set indicators of other sectors of economy and the corresponding markets in other countries. The approach is realized from the standpoint of competitive interaction of banks, business efficiency and distribution of services and is tested to analyze the situation in 2006–2017. The presented study is the second part of the general methodology for assessment of the competitiveness of the banking services market and covers the following items: banking efficiency, degree of monopolization, level of competition of banks, integrated assessment of competitiveness, disproportions and market saturation with players. To identify the advantages, the following relative indicators are introduced: indices of capitalization and concentration overrun, and index of competition exceeding. With this approach, Ukraine’s banking services market is compared with the commensurate markets of the euro-zone countries and other countries of the world. The perfection of the competitive interaction of banks is reflected by the indicators of efficiency, concentration, Herfindahl-Hirschman and disproportions. The generalized assessment of activities of all banks in the market is found due to the integral competitiveness index. In recent years, banking services markets in Ukraine and Romania have been ineffective. Among the countries with economy in transition, the markets of Poland and Turkey are the most attractive reference markets for Ukraine. To approximate the indicators to the level of Poland and Turkey, it is necessary to increase the capitalization and market value of banks by 10 times, to the level of Germany – almost 180 times. Concentration indices in Ukraine are overestimated 1.4 times as compared with Italy and France, 1.3 times – compared with Poland. The trend of Herfindahl-Hirschman index in Ukraine is growing and the integral competitiveness of the banking services market in Ukraine is low, with an estimation “satisfactory”. The necessity of increasing the capitalization of banks, the profitability of bank assets, the decrease in market concentration and the imbalances in the distribution of services is argued.

Issues of Competitiveness Estimation of Financial Institutions

“…When constructing the competitiveness estimation model in the financial sector, the authors of the research identify some important components as follows: efficiency, size, IT, resource management (Yokoi-Arai, Yoshino, 2006); information and computer technologies (Asongu, Nnanna, 2018); the level of industry concentration (Shirinian, Shirinian, 2019), the components of the Financial Market Development Group, according to the methodology of calculating the global competitiveness index of the World Economic Forum countries; financial indicators of the stability of the financial institution (Halyts, 2007;Parasii-Verhunenko, 2008;Sitnikova, ets, 2021) The largest in number is the group of Finance indicators, which includes indicators of capital adequacy and quality, assets, reserves, liquidity, profitability, the structure of revenues and expenditures. In this group there should be the indicators on which the following indicators are evaluated: efficiency and timeliness of decisions regarding the provision of sufficient funds, stability of their attraction, the possibility of diversification of liquidity financing sources; profitability, the dynamics of structural components of incomes and expenses, the quality of the structure and sufficiency of incoming financial flows, budget and financial planning and control; the share of non-standard, negative and "problematic" assets in the structure of assets, efficiency of credit portfolio management, the quality and the level of formed reserves and insider operations; the volume of regulatory capital according to the basic types of activity and operations, approaches to formation of own capital, dividend policy, access to capital markets, etc.…”