Theoretical foundations of economic analysis of bank reserves

Abstract

Introduction. Asignificant number of risks affects banking activity. These risks are managed by on a regular basis with the usage of a wide range of methods. Among these methods we can single out the method of reservation. At the present stage of development reserves provide protection so that they allow to display some individual objects of accounting, and, at the same time, to affect the value of the enterprise in the most complete and accurate manner. Qualitative analysis of reservation allows to evaluate the impact of provisions on solvency and investment attractiveness of the bank and its market value.

The purpose. The aim of the research is to develop goals and objectives and directions of economic analysis of bank reserves that are determined in banking accounting.

Results. On the basis of the scientific literature and critical understanding of the needs of risk-free banking activity we have determined that the purpose of the analysis of bank reserves is to define the ability of reserves to reflect the the real value of assets. In order to achieve this aim the formulation of specific tasks has been done. The author added one more task to those that have been determined by other scientists. The aim of this task is to control relationships between the reserves and cost of accounting objects. Also the author emphasize the task of comparing the value of reserves with other mechanisms of risk management.

The types of economic analysis that should be applied for the analysis of bank reserves are determined. Among these types we can distinguish vertical and horizontal one, coefficient one, factor analysis and analysis of performance. Due to the fact that formation of reserves is closely connected with the definition of risks, we have grounded the expediency of using of some methods of risk analysis in course of bank reserves analysis (migration analysis which is based on an integrated risk weight and dynamic model). On the example of dynamic reservation it has been proved the necessity of reserves analysis from the perspective of system approach.