Efficiency of Management of Loan Funds in the Banking Industry of Ukraine: Data of the Factor Analysis of Credit Turnover

Abstract

The article analyzes the rates of credit turnover by branches of the economy and by types of loans using indicators of the dynamic range, indices of average values and aggregate indicators. The purpose of the article is to provide a business case for efficiently managing credit resources in commercial banks based on a factor analysis of credit turnover by sector of the economy as a condition for optimizing a bank’s activities. The analysis of the literature shows that the management of credit resources in commercial banks is limited to the use of Western methods that are not adapted to the Ukrainian reality. The relevance of the article is the need to use the methods of economic and mathematical modeling to optimize the process of managing borrowed funds in the banking industry of Ukraine. Calculated average balances of credit investments. The article analyzes the hourly repayment of interest on loans by enterprises. Calculations of the volume of credit turnover are based on real indicators of the financial statements of Credit Agricole Bank. The study period was elected 2016-2017. Calculated the share of loans by industry in the portfolio of the bank. Defined one-day turnover on the repayment of bank loans by business entities. Calculated the duration of use of bank loans by business entities. The factors affecting the change in the rate of turnover of credit operations using the index method are analyzed. The index of the average duration of use of the loan of a constant composition is calculated. The average duration of use of bank loans by business entities has been determined. The structural change index, variable composition index, constant composition index, structure influence index are calculated. The article used the methods of factor analysis, probability theory, methods of economic and mathematical statistics. The effectiveness of borrowed funds management in the banking industry of Ukraine (on the example of Credit Agricole Bank) was confirmed by the data of a factor analysis of the loan turnover. The system of tasks solved by the proposed models includes the calculation of reasonable limits for attracting each type of resources and the effective interest rate to ensure increasing returns from the production of bank credit products and an increase in the share of the banking sector in creating the gross domestic product of the country