FINANCIAL MODEL FOR THE TRANSFORMATION OF COMMERCIAL BANKS

Abstract

This article comprehensively examines the financial model for the transformation of commercial banks from the theoretical, methodological, and practical perspectives. In the context of the digital economy, the importance of forming an effective financial model in ensuring the institutional transformation, financial stability, and competitiveness of the banking system is deeply analyzed. During the study, the main financial indicators of commercial banks' activities—capital adequacy (CAR), return on assets (ROA), return on capital (ROE), liquidity level, and the share of non-performing loans (NPL) —were studied based on a systematic approach.

The article scientifically substantiates the interdependence of asset and liability management (ALM), the improvement of the risk management system, the maintenance of liquidity at an optimal level, and the mechanisms for increasing profitability during bank transformation. Opportunities for increasing the financial efficiency of banks through the introduction of fintech technologies, the expansion of digital banking services, and the optimization of operating costs were also considered.

As a result of the study, a comprehensive financial model for the transformation of commercial banks was developed, and its main components—capital management, liquidity management, risk diversification, and profitability increase blocks—were proposed as a mutually integrated system. This model serves to strengthen the stability of the banking system, reduce financial risks, and expand opportunities for effective lending to the real sector of the economy.

The results obtained are of great scientific and practical importance in modernizing the activities of commercial banks, strengthening their integration with international financial markets, and developing the national banking system.