Analytical Support of Bank Treasury Management in The Conditions of Changes

Valentyna Kostyuchenko, Pavlo


In present-day economic environment, local banks need new management methods. There have been significant changes in the mechanisms of bank management recently, while the methodology for assessing their performance remains unchanged. The evaluation of the performance of a bank or any other entity depends entirely on financial results. And this, according to the authors, is a significant drawback. An evaluation system is needed which could objectively and thoughtfully reflect the dynamics of the bank in achieving the goals and objectives of shareholders and promptly diagnose deviations from the expectations. In addition, in conditions of constant economic, social and political turbulence, there is a need for analytical support, which should introduce the mechanism for rapid response to environmental volatility, assessment of the entity’s response to changes in the environment and management decisions. The practice of accounting in Ukrainian banks indicates a lack of information for management, operational management primarily. Severe competition, accelerated technological development, new banking products lead to the fact that existing management accounting systems become uninformative and unmanageable. This is evidenced by the withdrawal from the market of banks that could not pay their obligations due to unpreparedness for change in the environment. Due to the fact that the treasury is responsible for the bank's solvency, the availability of analytical support that will allow managers to make timely and informed decisions is the key. Moreover, the issue of change management arises, because changes may lead to both unpredictable losses and unexpected revenues. Implementing the concept of change management, the entity will have the ability to build its own activities in such a way as to adapt to volatile environment. Since a healthy banking system is the basis for economic growth of the state, the importance of implementing analytical support that would operate in a changing environment cannot be overestimated. This study makes an up to date contribution to the feasibility of introducing analytical support to the management of the bank, emphasizes the role of accounting and analytical support of the bank treasury and offers indicators that affect its ability to respond to changes in the environment.

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