Application features of capital estimation methods in the bank management system

The finance, taxation, investments

The mechanism of capital management of a banking institution is a complex set of actions and effective management measures aimed at obtaining maximum profit. One of the key moments in the mechanism of capital management of the bank is the role of capital estimation. From the competent, qualified, competent estimation of the capital depends the volume of operations carried out by the bank, attraction of new clients, expansion of opportunities. Also, the correct estimation will prevent the bank's bankruptcy process, because in time the weaknesses in the capital policy and the reserves that can compensate for the negative situation are determined. Management of a bank is a complex, multi-element, interdependent, interrelated and mutually dependent process. It is proposed to focus on estimation of the bank capital in the management system, since a simple estimation indicates the existence of the bank capital, and management information is aimed at the operative and long-term management of the banking institution, which allows the flexible implementation of the financial policy necessary at a given time and aimed at perspective. Thus, the evaluation of the bank capital in the management system is a broader concept than the template valuation of the bank capital. The study addresses the above issues in more detail. The volume of bank capital significantly affects the level of reliability and trust in the bank from the side of society. That is why the problem of determining the capital adequacy of the bank and the choice of methods for its regulation is one of the central issues in international and domestic banking practice. The banks' own capital is a long-term resource and serves as a reserve for unforeseen losses, and also defines the limits of the development of banking operations. In this regard, an important component of the functioning of its own banking capital is the measure of its sufficiency for implementing the risk strategy of its own development and the successful functioning of the country's economy. At present, an extremely important and relevant moment of the study is the choice of the method of assessing capital for effective management of a banking institution.