Assessment of bank lending diversification in Ukraine

Profit is the main purpose and the key result of any enterprise operation. Profit management involves two stages, namely, generation and distribution. Profit generation is the main stage in the overall process of profit management and not only the basis for its distribution, but also a source of the production assets renewal and the new self-financing of the further development of the enterprise. Based on the analysis of approaches to the essence and classification of company profits, an advanced complex classification is proposed. In order to improve the profit generation management of a motor transport enterprise and to identify the main factors affecting its profits, an analysis of technical and economic indicators, analysis of profitability indicators and SWOT analysis were carried out. Given the results obtained, a questionnaire was created and a survey was carried out among managers and specialists of the enterprise, which allowed to identify the factors that have the greatest impact on the activity of the motor transport enterprise. The factors are classified into external and internal. Also, a factor analysis of the company’s profit was carried out, which made it possible to determine key indicators that require priority attention in managing the profit generation at a motor transport enterprise. It was concluded that the most important external factors include the Ministry of Infrastructure’s activities aiming at adapting the world tendencies to the Ukrainian automotive industry. The internal factors in controlling the profit generation of the enterprises are in paying greatest attention to the volume of services rendered, their cost and the size of transportation tariffs.

This study begins with the assumption that the existence of abnormal circumstances will force investors to take measures to protect their investments in the capital market. Recently, the stock index in the Indonesian market has been declining and continued to fall until the end of April 2020 due to the impact of the Covid-19 pandemic. In terms of efficient market theory, prospect theory and signaling theory, this study aims to analyze the relationship between risk and return in the Indonesian capital market during the Covid-19 pandemic as a manifestation of investor behavior. To test hypotheses, the correlation test, the independent sample t-test and the Cohen test for 629 public firms with 52,836 observable data are used. The findings show that for financial sectors and non-financial sectors, the fourth period differs from previous periods when the relationship between systematic risk and stock returns is positive, although only non-financial sectors have a significant effect. The results show that efficient market theory, prospect theory and signaling theory are consistent with the phenomena around the Covid-19 pandemic in Indonesia. In addition, Cohen’s test results suggest that government policies in the face of the pandemic are successful in stimulating the market.

In the article, the essence of the concept of a banking institution “capitalization” is revealed. The current state of capitalization level of domestic banks is investigated. The directions of strengthening the capitalization are offered, which will increase the com¬petitiveness of domestic banking institutions in the world financial market and will ensure the national economy stability on the way toward integration into the world economy.
It is proved that the prospects for the development of any bank are largely determined by its capitalization level. Lack of proper development inhibits both individual banks and the banking sector as a whole.
In the context of the recent financial crisis, the provision of sufficient capital for banks has been one of the key issues, because the lack of capital was the greatest threat to the banking system stability. With this in mind, the issue of the banking system capitaliza¬tion is particularly topical.
Today, the development of the Ukrainian banking system under economic instability has faced the increase in competitiveness of domestic banks compared with foreign ones, in order to preserve the national priorities of the banking system in general under conditions of foreign capital movement.
The processes of concentration in the banking system of Ukraine are analyzed using Herfindahl-Hirschman index in terms of assets and equity, allowing to estimate the level of monopolization and, therefore, the impact on economic development. To con¬sider the increase in the level of capitalization and reliability of the banking institutions of Ukraine, it would be advisable, first of all, for banks to improve the quality of capital and to ensure a sufficient level of coverage of risks taken by banks.