METHODOLOGY OF THE BANK’S BUSINESS STRATEGY FORMATION AND IMPLEMENTATION ON THE BASIS OF A VALUE-ORIENTED APPROACH

Abstract

Introduction. At present, the use of strategic tools is no longer just a competitive advantage, but a prerequisite for the viability of any business model of the bank and to some extent may even be perceived as a compliance requirement. Regarding the latter, we mean radical changes in the requirements for the organization of the internal control system in the bank which now require banks to preventively react not only on the most expected threats and risks, but also those that could potentially occur because of the strategic plans of the banking institution.
The aim. The aim of the article is to develop a methodology for forming and implementing the bank’s business strategy based on a value-oriented approach.
Results. The transformation of the domestic banking sector through the prism of the determinant ‘financial stability’ has been stated. It is proved that the priority of ensuring financial stability in terms of forming business strategies of the bank is able to direct the logic of subjective thinking of individual banking institutions to achieve the optimum in relation to the quality of individual economic activity and the interests of society. We consider the transition to ‘integrated thinking’ in banking to be a fundamental prerequisite for the viability of banks’ business strategies in today’s conditions of economic transformation. The essence of the economic value of the bank’s activity and its interrelation with the market value of its business is structured. The expediency of implementing the ideas of the concept of sustainable development into the methodology of formation and implementation of business strategies of the bank as a worldview of modern banking is substantiated.
Conclusions. Based on a comparative content analysis of value-oriented approaches to the formation of the bank’s business strategy and proved that the bank’s use of a multidimensional approach to the formation of its economic value in terms of business areas will encourage it to transfor