Money, finances and credit

Process approach as a powerful tool to assess effectiveness of the bank’s resource potential

Economic Annals-XXI

Economic Annals-ХХI: Volume 145, Issue 9-10(2), Pages: 24-27

Citation information:
Panasenko, A. (2014). Process approach as a powerful tool to assess effectiveness of the bank’s resource potential. Economic Annals-XXI, 9-10(2), 24-27. https://ea21journal.world/index.php/ea-v145-06/

View Full TextDownload PDF

Anna Panasenko
PhD (Economics),
Associate Professor,
Makiyivka Economics and Humanities Institute
16 Ostrovsky Str., Makiyivka town, 86100, Donetsk Region, Ukraine
panasenkoaa@mail.ru

Process approach as a powerful tool to assess effectiveness of the bank’s resource potential

Abstract. The author article deals with the process of the bank’s resource potential forming and its efficiency evaluating. It also designates problems of modern methods of the banking establishment’s activity efficiency analysing that are mostly based at financial indicators and are oriented towards evaluating already existing accumulated potential and do not take into consideration procedure of raising funds. It is proposed to consider the mechanism of the bank’s resource potential formation as an economic process and, based on this, use the appropriate criteria that make evaluation possible. The author focuses on the key conceptual elements that require a clear definition and detailing of components for subsequent evaluation of the resource potential formation mechanism’s effectiveness. Formalized stages of the effectiveness evaluating of the bank’s resource potential formation mechanism using a process approach, involving structuring evaluation procedures, analysis of the business processes length indices and their cost component, assessing the business processes quality, their yield and profitability. The proposed criteria are universal, which makes it possible to distribute them to any processes that are part of the bank’s resource potential mechanism formation in practice and receive objective and accurate evaluation of its effectiveness.

Keywords: Bank; Resource Potential; Evaluation; Efficiency; Process

JEL Classification: G21

References

  1. Panasenko, А. (2012). Opportunities of praxeology in the banking sector. Ekonomicnij Casopis-XXI (Economic Annals-XXI), 1-2, 52-54.
    Retrieved from https://ea21journal.world/index.php/ea-v118-16/ (in Russ.)
  2. Belotserkovskiy, V. I., Korneev, M. V., & Milyaeva E. E. (2002). Modeling the effective lending capacity of the structure of a commercial bank. Mezhvuzovskiy sbornik nauchnykh trudov «Ekonomika. Upravlenie. Finansy» (Interuniversity Collection of Scientific Papers «Economy. Management. Finance»), 8-9, 35-41 (in Russ.).
  3. Dromova, U. (2009). Problematic aspects of the development and evaluation of potential long-term bank loans. Visnyk Dnipropetrovskoi derzhavnoi finansovoi akademii: Ekonomichni nauky (Herald of the Dnipropetrovsk State Financial Academy: Economics), 1, 105-111 (in Ukr.).
  4. Zymovets, V., & Sheludko, N. (2007). Financial strength of the banking system of Ukraine and efficiency of its usage. Aktualni problemy ekonomiky (Actual Problems of Economics), 1, 139-155 (in Ukr.).
  5. Lutsiv, B., & Stechyshyn, T. (2009). The investment potential of Ukraine’s banking system. Finansy Ukrainy (Finance of Ukraine), 9, 67-77 (in Ukr.).
  6. Buzko, I., Dmytrenko, I., & Sushchenko O. (2002). The strategic potential and the priorities in enterprises development shaping. Alchevsk: DHMI (in Ukr.).
  7. Vasiurenko, O. (2002). Resource potential commercial bank. Bankivska sprava (The Banking), 1, 58-64 (in Ukr.).
  8. Akhigbe, A. (2003). The Profit Efficiency of Small US Commercial Banks. Journal of Banking & Finance, 27.
  9. Casu, B., & Molyneux, P. (2000). A Comparative Study of Efficiency in European Banking. Wharton School of Business, University of Pennsylvania, WP0025.
  10. Hasan, I. (2003). Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience. Journal of Banking & Finance, 27.
  11. Williams, J. (2005). Financial Liberalisation, Crisis, and Restructuring: A Comparative Study of Bank Performance and Bank Governance in South East Asia. Journal of Banking & Finance, 29.
  12. Voronyn, N. (2013). Comparison of the main approaches of mathematical methods for the effectiveness of business processes analysis. V mire nauchnykh otkrytiy (In the World of Scientific Discoveries), 4(40), 212-227 (in Russ.).
  13. Process approach in economics and management (2011). Materials of International extramural scientific and practical conference. Omsk: Ministry of Education and Sciences of Russian Federation (in Russ.).
  14. Kovalev, S., & Kovalev, V. (2005). Business processes selecting to optimize. Konsultant direktora (Consultant of Director), 5, 2-9 (in Russ.).
  15. Dithelm, G. (2004). Project Management (Trans. from German). St. Petersburg: Business Press: Twentieth Trust Corporation (in Russ.).
  16. Kozerod, L. (2009). Methods of the cost-effectiveness of business processes assessing. Vestnik NGU. Seriya: Sotsialno-ekonomicheskie nauki (Herald of NSU. Series: Socio-economic Sciences), 9(1), 83-90 (in Russ.).

Received 09.09.2014

View Full TextDownload PDF
In, , , ,

More Papers