TRANSFORMATION OF FINANCIAL MANAGEMENT IN THE BANKING SECTOR OF UKRAINE DURING THE WAR
Keywords:banking sector, effective financial management, integration approach, process approach, financial stability, financial indicators of banking sector functioning, digitalization of business processes, financial management by the regulator, organization of business processes
Introduction. None of the spheres of social life, including the economic, can take place according to established approaches and mechanisms. Banking is no exception, first of all, the development of the banking sector, in which ambitious goals that lead to the acceleration of its transformation processes are always prominent. A key issue in the functioning of the banking sector at any stage of its development is ensuring financial stability in the short term and financial stability in the long term. This issue became even more relevant during the COVID-19 pandemic, and gained importance with the full-scale invasion of the aggressor country on the territory of Ukraine.
The purpose of the article is to define the features of effective financial management, and substantiate the main parameters of the banking institutions business processes organization in the conditions of military aggression
Results. The article formulates the main goal and principles of effective financial management in banking sector, namely: transparency, variability, reflexivity, informativeness, hierarchy, adaptability and corporateness. It has been proven that integration and process approaches to management are used in banking to ensure its effective functioning,. The effectiveness of financial management in the banking sector of Ukraine during 2021-2022 was studied through the analysis and assessment of the changes dynamics in banks' financial results, the amount of deductions to reserves for the depreciation of bank assets, the amount of non-performing loans, and the capital standards of banks. The key decisions of effective financial management by the National Bank of Ukraine after the full-scale invasion of the Russian Federation are diagnosed.
Conclusions. The main parameters for organizing the business processes of the vast majority of banking institutions for effective bank-client communication are proposed, in particular, the organization of remote access, ensuring a smooth process of customer service, work on minimizing losses, reassessing the state of the loan portfolio and finding out its level of deterioration, duplication of personnel functions and others. It has been proven that in modern conditions effective financial management in banking is transformed in view of modern challenges and should be situational, fast and economically justified.