Money, finances and credit

The differential features of the banking institutions capitalization in Ukraine

Economic Annals-XXI

Economic Annals-XXI: Volume 131, Issue 7-8(1), Pages: 62-65

Citation information:
Papaika, О., & Kosova, Ε. (2013). The differential features of the banking institutions capitalization in Ukraine. Economic Annals-XXI, 7-8(1), 62-65. https://ea21journal.world/index.php/ea-v131-16/

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Oleksandr Papaika
D.Sc. (Economics),
Head of Banking Department,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky, Ukraine
bank@kaf.donduet.edu.ua

Elina Kosova
Post-Graduate Student,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky, Ukraine
kosova777@mail.ru

The differential features of the banking institutions capitalization in Ukraine

Abstract. Introduction. The differential features of the banking institutions capitalization in Ukraine are analyzed. The purpose of the article is determination of objective laws and factors which define capitalization of banking institutions in Ukraine on the basis of consideration the Ukrainian bank institutions as a statistical aggregate. Such methods of research are used: coefficient analyses, rows of dynamics, statistical distributions. The basic result of research resides in diagnostics of distribution the size and specific gravity of the bank’s owned capital as a whole and within the limits of separate groups. Conclusion. It is recommended to take into account not only the costs of assets but also the size of bank owned capital at distribution banks on groups. Ukrainian banks size growth has exponential characteristics and the differentiation between different banks’ own capital size is extremely high. It is found that the ratio of own capital in Ukrainian banks assets varies from 0 to 100% which points at significant differences in banking management. The first group of banks (in which are institutions with own capital of UAH 2,800 mln. and more) have an optimal level of capitalization 10-20%. More than 1/3 of Ukrainian banks are overcapitalized.

Keywords: Bank Establishment; Own Bank Capital; Capitalization; Differential Features

JEL Classification: G21; G24; G28; G30

References

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Received 20.06.2013

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