Scientific and Methodological Approach to Assessing the Level of Banks' Financial Security

The purpose of the study is to develop theoretical provisions and applied recommendations for assessing and improving the financial security of banks. To achieve this objective, the following tasks are fulfilled in the research: a) it is proposed to distinguish such components of the bank’s financial security by functional approach as: “security of deposit transactions”, “security of credit transactions”, “security of cash transactions”, “security of investment transactions”, “security of currency transactions”; b) a scientific and methodological approach is proposed for estimating the level of the bank’s financial security by functional components, which is based on the calculation of an integral index with further ranking and grouping of banks by their financial security level; c) a set of measures to increase the level of banks’ financial security by each functional component is formed. The study results are based on the use of the following methods: economic and statistical (calculation of the integral index of the bank’s financial security level), the method of hierarchy analysis and an expert survey (determination of the importance of financial security indicators), the normalization principle (bringing indicators that are different by type to information unidirectionality and dimension), the method of ranking and grouping of banks by the level of financial security, logical generalization and a systematic approach (formation of measures to increase the level of financial security). The proposed scientific and methodological approach to assessing the level of the bank’s financial security is tested on the example of Ukrainian banks; the calculations are made according to the official statistics of the National Bank of Ukraine as of 01.09.2019.