Financial stability management in banks: strategy maps

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To prevent crises in the economy, it is necessary to ensure the financial stability of banks, which is one of the main tasks facing the banking system.
The purpose of this article is to develop tools for improving the efficiency of financial stability management in a bank based on strategy maps.
Using UkrSibbank (Ukraine) as an example, two strategy maps are developed: a general management map and a local map – for the international payments division of the operational payments department. Structural elements of the designed strategy maps are: finances, clients, internal processes, training and development.
Implementing the developed general strategy map in the bank’s practical activities involves the following measures: increasing financial stability; avoiding credit risk and optimizing the credit process; increase in profit; cost reduction; introducing new banking products; increase in the number of satisfied consumers; involvement and retention strategic clients.
The developed strategy map for the international payments division of the operational payments department provides for the following measures: ensuring sufficient liquidity level of the bank’s balance sheet; introducing an effective system of analysis of origin of individuals’ and legal entities’ funds; direct correlation between employees of the international payments division and bank customers; timely informing customers regarding requirements updated.

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    • Figure 1. The strategy map of financial stability management at Ukrsibbank
    • Figure 2. The strategy map for the international payments division of the operational payments department at Ukrsibbank
    • Table 1. Approaches of scientists and practitioners to the definition of financial stability
    • Table 2. Deposit-taking activity of Ukrsibbank for 2013–2017, UAH ths
    • Table 3. Debt of Ukrsibbank to other banks, UAH ths
    • Table 4. Correspondent accounts and overnight loans of other banks, UAH ths