the organization of accounting and reports in the banks of Ukraine is determined as the
reports on the state and performance of the bank, which is used by the Bank's Board
for planning, monitoring and adoption of appropriate management and economic
decisions [13]. At the same time, the regulator has not clearly defined liquidity risk
reports requirements: banks are required to report on liquidity ratios N4, N5 and N6,
whereas internal reports are not regulated in any way. However, the National Bank of
Ukraine recommends banks the following:
1. Creating an independent risk management unit with the appropriate authority,
resources, expertise and corporate status that has no obstacles in access to information
for formulating and submitting management reports on the results of its research;
2. Regularly report on the concentration of assets and liabilities of the bank;
3. Reporting to the supervisory board, board and collegial bodies of the bank
regarding the liquidity situation and the need for financing [14].
At the same time, management reports on liquidity risk should be formed by an
authorized subdivision based on the following principles:
1.
Comprehensiveness and relevance;
2.
Credibility;
3.
Timeliness;
4.
Manageability;
5.
Transparency;
6.
Flexibility and scalability [15].
Since representative offices of foreign banks have been successfully operating in
Ukraine for over 25 years, it would be useful to group their approach to managing
liquidity risk. Western banks are the first to implement the methodological
recommendations of the Basel Committee on Banking Supervision, and their
subsidiaries in Ukraine are no exception.
As of January 1, 2018, only 87 banking institutions had the license of the National
Bank of Ukraine (including 38 banks with foreign capital).The detailed information on
the dynamics of changes in the number of banks in Ukraine is shown in Figure 1.
Over the past 5 years, the NBU bank recalled 89 licenses, including 15 from banks
with a share of foreign capital. The relative stability of the number of banks with
foreign capital and the almost constant number of banks with 100% foreign capital in
2016-2018 indicates that the management of foreign banks already used the method of
calculating the credit risk of borrowers based on Basel III requirements in their
activities.
Starting from 2015, when the National Bank of Ukraine started implementing the
recommendations of Basel III, the number of unprofitable banks, banks with negative
operating income and negative net interest income is constantly decreasing (Figure 2).
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