Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market
The article is dedicated to the research of methodological and practical problems of assessing the competitiveness of banks in the banking market. It was studied methodical approach to the evaluation of the competitiveness of commercial banks, found the main shortcomings of existing banks competitiv...
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Інститут економіки промисловості НАН України
2015
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irk-123456789-1093222016-11-25T03:02:31Z Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market Derevyanko, O.V. Finance The article is dedicated to the research of methodological and practical problems of assessing the competitiveness of banks in the banking market. It was studied methodical approach to the evaluation of the competitiveness of commercial banks, found the main shortcomings of existing banks competitiveness evaluation methods. It was developed the method of valuation of bank competitiveness through integral indicator, which allows you to get a comprehensive picture of the competitiveness of the bank, helps to identify a pre-emptive, and the critical position of the bank on individual areas of activity that is necessary for the formation of mechanism of increasing its competitiveness. Статтю присвячено дослідженню методологічних та практичних проблем оцінки конкурентоспроможності банків на ринку банківських послуг. Досліджено методичні підходи до оцінки конкурентоспроможності комерційних банків, виявлено основні недоліки існуючих методик оцінки конкурентоспроможності банків. Розроблено методику оцінки конкурентоспроможності банку за допомогою інтегрального індикатора, який дозволяє отримати комплексне уявлення про конкурентоспроможність банку, сприяє виявленню як переважних, так і критичних позицій банку за окремими напрямами діяльності, що необхідно для формування механізму підвищення його конкурентоспроможності. Статья посвящена исследованию методологических и практических проблем оценки конкурентоспособности банков на рынке банковских услуг. Исследованы методические подходы к оценке конкурентоспособности коммерческих банков, выявлены основные недостатки существующих методик оценки конкурентоспособности банков. Разработана методика оценки конкурентоспособности банка с помощью интегрального индикатора, который позволяет получить комплексное представление о конкурентоспособности банка, способствует выявлению как преимущественных, так и критических позиций банка по отдельным направлениям деятельности, что необходимо для формирования механизма повышения его конкурентоспособности. 2015 Article Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market / O.V. Derevyanko // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 82-89. — Бібліогр.: 2 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/109322 336.7 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Finance Finance Derevyanko, O.V. Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market Економічний вісник Донбасу |
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The article is dedicated to the research of methodological and practical problems of assessing the competitiveness of banks in the banking market. It was studied methodical approach to the evaluation of the competitiveness of commercial banks, found the main shortcomings of existing banks competitiveness evaluation methods. It was developed the method of valuation of bank competitiveness through integral indicator, which allows you to get a comprehensive picture of the competitiveness of the bank, helps to identify a pre-emptive, and the critical position of the bank on individual areas of activity that is necessary for the formation of mechanism of increasing its competitiveness. |
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Article |
| author |
Derevyanko, O.V. |
| author_facet |
Derevyanko, O.V. |
| author_sort |
Derevyanko, O.V. |
| title |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market |
| title_short |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market |
| title_full |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market |
| title_fullStr |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market |
| title_full_unstemmed |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market |
| title_sort |
assessment of competitiveness of commercial banks and method of detection competitors in the banking market |
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Інститут економіки промисловості НАН України |
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2015 |
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Finance |
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http://dspace.nbuv.gov.ua/handle/123456789/109322 |
| citation_txt |
Assessment of Competitiveness of Commercial Banks and Method of Detection Competitors in the Banking Market / O.V. Derevyanko // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 82-89. — Бібліогр.: 2 назв. — англ. |
| series |
Економічний вісник Донбасу |
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AT derevyankoov assessmentofcompetitivenessofcommercialbanksandmethodofdetectioncompetitorsinthebankingmarket |
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2025-07-07T22:54:49Z |
| last_indexed |
2025-07-07T22:54:49Z |
| _version_ |
1837030588260810752 |
| fulltext |
O. V. Derevyanko
82
Економічний вісник Донбасу № 4(42), 2015
UDC 336.7
O. V. Derevyanko,
Classic Private University,
Zaporizhzhya, Ukraine
ASSESSMENT OF COMPETITIVENESS OF COMMERCIAL BANKS
AND METHOD OF DETECTION COMPETITORS IN THE BANKING MARKET
In a market economy particularly important assess-
ment of competitiveness of the bank, because the market
there are banks who compete for engagement and re-
source allocation. Under these conditions, the effective-
ness of the bank depends on its competitive position and
competitiveness. The need to analyze the competitive-
ness of the bank there all participants entities involved
in the banks: the Bank's clients, potential investors, the
bank's shareholders, regulatory authorities, international
financial institutions, the media, employees of the bank,
the bank's competitors. The goal they all reveal the real
financial condition, its degree of reliability and compet-
itiveness. Of particular relevance is the question of as-
sessing the competitiveness of banks in the financial cri-
sis. All this makes the strategic orientation of banks to
occupy the leading position in the competitive environ-
ment, as well as maintaining and improving its compet-
itiveness.
Analysis of recent research and publications.
Due to its exceptional urgency, the problem of research
on the nature and characteristics of banking competi-
tion, as well as evaluating the competitiveness of banks,
we found wide coverage in domestic and foreign litera-
ture. In particular, studies of this issue are engaged sci-
entists as authors I. Andreev, N. Andrushkiv, W. Wolk,
T. Hirchenko, G. Oleszczuk, F. Shpyg and others.
The issue of the competitiveness of the bank al-
ways pay attention to economists who study problems
of the banking system. Great contribution to the devel-
opment of structural analysis problems of competitive-
ness strategies such banks have foreign and domestic
scientists: Porter, R. Fathutdynov, Yuri Zaruba, Alexan-
der Kireev, Ivan Fomin, and others. With regard to the
assessment of the competitiveness of commercial banks,
they are much less studied (I. Voloshchuk, A.
Dzyublyuk, A. Lavrushin, A. Galyts, Savluk M. et al.).
In the above-mentioned researchers it is revealed
the nature and characteristics of banking competition,
investigated the nature and modification of competitive
relations in the modern banking market, examined main
sources of competitive advantage of banks and their
transformation. It is also investigated the question of the
competitiveness of banks and their assessment, in par-
ticular - given the definition of the economic category,
made efforts to offer its indicators and approaches to as-
sessment. However, despite serious attention to issues
of competitiveness among domestic banks as well as
among foreign researchers, methodological bases its as-
sessment remain undeveloped for a number of reasons.
First, in the scientific literature there is no clear and con-
sistent interpretation of economic categories "competi-
tiveness bank", which should be based, on the one hand
the basic provisions and fundamental ideology of mod-
ern theories of competition, on the other hand - take into
account the fundamental principles of banks as specific
financial a special type of institutions and transfor-
mation of the nature of banking competition in the mod-
ern world. In this regard, the literature is not as clear and
well-established set of indicators that would allow the
bank to evaluate the competitiveness and efficient meth-
odological tools that have transformed the assessment of
various parameters in a single scale and allow the calcu-
lation of certain integral index of competitiveness.
The formation of article’s purposes. According
to the identified gaps in scientific researches, the main
purpose of this article is to justify a set of indicators of
competitiveness of the bank and offer a method of eval-
uation, completing their practical testing.
The main material research. Today, to improve
the competitiveness of commercial banks need to de-
velop adequate methodological tools that can detect and
critical competitive potential in areas of banks and on
this basis to create a mechanism to improve their com-
petitiveness.
In the scientific literature different methods are
marked to assess the competitiveness of commercial
banks. They are mainly based on the assessment of the
techniques of commercial banks, primarily financial, or
such important characteristics of its activities as stability
and safety. These methods differ only sources of infor-
mation, covering areas of banking and consideration of
the environment, the type used indicators construction
tools, technologies calculation (Fig. 1).
Many foreign banks use in conducting strategic re-
search and analysis of competition intensity of compet-
itive forces model of M. Porter, who believed that to
achieve competitive advantage possible if both perform
three tasks:
1. Improving the quality and consumer properties
product.
2. Reducing costs and preserving the highest pos-
sible level of prices.
3. Aspect products to targeted market segments.
O. V. Derevyanko
83
Економічний вісник Донбасу № 4(42), 2015
Fig. 1. Classification of methods for assessing the competitiveness of commercial banks
By the methods of assessment of commercial bank
it is included known methodological development ex-
perts, banks, rating agencies, consulting companies - a
system «CAMEL», methods of the Bank of England
«RATE», rating agencies «Fitch», «Standart & Poor's»,
«Moody's», «Bank-rates», «MarkswebbRank & Re-
port», consulting companies «BostonConsulting-
Group», «FrankResearchGroup».
Also, there are many methods for assessing the
competitiveness of commercial banks, which are devel-
oped by scientists and groups of experts under the lead-
ership of V.Kromonov, A.V. Suvorov, D.K. Potapov
and V.V.Yevstafyeva, A.G. Zaharyan, S.N. Kapustin
and others.
Much of these methods is based only on the finan-
cial statements as a primary source of information on the
activities of the bank and includes mainly quantitative.
Thus, the method of estimating the significance of the
banks, the proposed by A.V. Buzdalin, is based on at-
tracting multi evaluation methods of banking, expressed
set of indicators, including: the total value of assets; the
total value of commitments; the total amount of bank's
own funds; the volume of individuals' deposits; the size
of the budget accounts.
We believe that in certain benefits (a lot of criteria,
the relative ease of selection information), this method
does not give a complete picture of the competitiveness
of the bank as focuses only on financial side its activities
and balance data is not taken into account of qualitative
characteristics of banking, and among the quantitative
parameters contains only absolute figures, which creates
difficulties with interpretation differences when com-
paring banks, different size capacities, and eliminates
the possibility of comparing the efficiency of use. In ad-
dition, the method does not take into account the prob-
lem of assessing the significance of the calculation pa-
Methods of assessing the competitiveness of commercial banks
The criteria
of classification
Source of information
Public reports
Internal reports
Internal and external sources
Source of information
Financial activity
Financial and non-financial
activities
Type of indicators
Quantitative indicators
Quantitative and qualitative
indicators
Considering the environment
Internal environment
The internal and external
environment
The method of construction
Rating evaluation
Mark estimation
Integrated indicators
The technology of calculation
Balance approach
Expert approach
O. V. Derevyanko
84
Економічний вісник Донбасу № 4(42), 2015
rameters are ignored criteria such as asset quality, the
level of risk, capital adequacy, etc.
Methods that are used by rating agencies and con-
sulting companies tend to include not only financial in-
dicators (capital adequacy, liquidity, asset quality, the
structure of liabilities, risks and profitability), but the in-
dexes of market position of the bank (image, market
share, customer base, geographical structure, specializa-
tion) and quality of bank management that the overall
lets you display both quantitative and qualitative char-
acteristics of banking.
There are several methods for assessing the com-
petitiveness of banks that implemented efforts to expand
the approach to assess the competitiveness of commer-
cial banks by taking into account its investment attrac-
tiveness, economic and non-economic factors, the total-
ity of quantitative and qualitative characteristics of
banking, consumer preferences, competitive banking
services as part of the competitiveness of the bank and
as part of the internal and external environment.
The method proposed by I.A. Nikonova and R.N.
Shamhunov comes from recognizing the need to assess
the competitiveness of commercial bank not only for
banks, competitors and customers, but also for investors
who are considering the competitiveness of the bank
from the standpoint of its investment attractiveness. The
methodology identified the twenty most important qual-
ity criteria for assessing the bank's corporate clients and
individuals, including the level of confidence in the
bank, qualified staff, the popularity of the bank, the
quality of services provided, development of the branch
network, the bank's compliance policy interests of the
region and others.
The method is developed by I.N. Rykov and A.A.
Chernyshev, to assess the competitiveness of the bank
allocated two blocks of indicators characterizing its sta-
bility and consumer preferences. Block sustainability of
indexes includes five sub-blocks, coefficients of relia-
bility, liquidity, profitability, etc., which calculated on
basis of point scale. The method also provides account
external factors - parity of interest rates on the main
types of services. Under certain benefits of the proposed
methodological approach it differs significant limita-
tions because it does not reflect any of algorithm and
calculation of consumer preferences and environmental
factors, not technology determining points for the stabil-
ity factor, no way to combine all indicators into a single
indicator that reflects the level of competitiveness com-
mercial bank.
The method, which is proposed by I.A. Spitsyn and
Ya.O. Spitsyn, differs from the above, firstly, the clear
construction of criteria of competitiveness and compo-
sition used indicators. It involves a comparative analysis
of banks competing for criteria such as absolute and rel-
ative market share trends of change, the relative profita-
bility of banking, the relative quality and cost of services
provided, the emergence of new services, the degree of
concentration of the client base, relative capital intensity
of bank . The overall levels of competitiveness of com-
mercial banks, by the authors, based on the importance
of peer review on meaning of indexes and bring them to
a common point scale (50 points).
In our view, an undoubted advantage of method is
assessment of the market share occupied by the bank in
statics and dynamics, and quality characteristics of bank
activity (quality of services provided), which, of course,
adjust the results derived from the financial statements.
The competitiveness of banking services - an im-
portant component of the competitiveness of the bank -
defines the importance of developing methodological
tools for assessing the competitiveness of banking ser-
vices. Appropriate methods are based on approaches
that provide accounting:
• Qualitative parameters of banking services re-
lated to the performance characteristics of their sales;
• Segmentation models of distribution customer
base;
• Consumer and economic characteristics of bank-
ing services based on the analytic hierarchy;
• Allocation product line with the analysis of feasi-
bility of providing each service and tariff policy.
In some works methodological tools of assess the
competitiveness of banking services built into the sys-
tem for evaluating the overall level of competitiveness.
So, Y.S. Kudasheva rightly observes that determine the
competitiveness of services is one of the main parame-
ters of the bank; while developing the method for as-
sessing the competitiveness of the banking services au-
thor considers it is necessary to take into account the
cost of banking services dependent on their quality, and
conduct comparative description of the main banking
activities of the bank and the key parameters of quality
banking services.
Methods by Yu.Z. Kaidashev is based on calcula-
tion of the major internal and external performance of
the commercial bank. Assessment of the internal envi-
ronment of the bank is based on calculating the quality
criteria of assets and liabilities, the bank's capital ade-
quacy, profitability and profitability of its operations,
the bank's image and competitiveness of services. Eval-
uation of the environment of the bank includes the cri-
teria for the calculation of the state population, the real
economy and the results of government regulation.
We believe that in the considered method it is com-
bined qualitative and quantitative indicators, although a
number of quantitative indicators developed to reflect
the quality of the assets and liabilities, and capital ade-
quacy, needs clarification (eg reserve ratio, defined as
the ratio of reserve and loan debt , which is included of
the indicators are not as assets and liabilities, and capital
adequacy, etc.). The advantages of the technique include
the account environmental factors of the bank. How-
ever, the proposed method of calculation shall be sub-
O. V. Derevyanko
85
Економічний вісник Донбасу № 4(42), 2015
mitted not certain. If it is assumed that all banks com-
peting in the same set of economic conditions, competi-
tiveness is the ability of banks calculated under equal
environmental conditions, the question arises: why do
we need to consider the environmental criteria in an in-
tegral factor, because it does not affect the results of
comparative analysis of competitiveness?
Of course, it seems that environmental factors ac-
count shall be determined by the choice of study. Thus,
the analysis of the competitiveness of banks on a na-
tional scale is important to take into account regional
differences in terms of (meso level), the scale of the
global economy we should include in addition the anal-
ysis of characteristics due to specifics of the national
economy (macro level). If we assess the relative com-
petitiveness of regional banks at the regional level, the
account regional conditions common to all banks in the
region, does not affect the results of the integral calcu-
lation. Thus, the method involves a multi-purpose ac-
count environmental factor.
Overall analysis of methodologies of assesses the
competitiveness of the banks that are presented in the
economic literature, can identify a number of major dis-
advantages (Table. 1).
Table 1
The main disadvantages of methods for assessing the competitiveness of banks
(Personal opinion of the author)
Disadvantage Characteristic
Accounting for a limited num-
ber of factors
Most methods are based on internal information and does not take into account the state of the
environment
Unrepresentative composition
of parameters(indexes)
Several methods boils down to assessing only the quantitative characteristics of banking ac-
tivity and does not reflect its quality indicators. Quantitative characteristics sometimes are just
absolute terms that are less informative because of various complicating comparisons largest
banks in the efficiency of their operation. In methods that include quality indicators that char-
acterize not quantitative characteristics of the bank, these indicators are often unconsidered
Subjective character Inclusion in the methods of qualitative indicators involves the use of peer review, which causes
some degree of subjectivity.
A similar situation arises when using the integrated competitiveness indicators of the bank
when expert assessments are used to determine the significance of the contribution of private
integral indicators
Static character Methods that are based on the use of data at one period, to assess the current state of compet-
itiveness of the bank, but do not reflect the dynamics of this state
Non-transparency Closed nature of some methods does not allow understand how the calculation results of the
assessment of competitiveness of banks
Limited of application Methods based on confidential information cannot be applied by all market stakeholders
In connection with the above, the need to develop
updated methodology for assessing the competitiveness
of commercial banks, which could to some extent to
eliminate. In our view, this method should reflect an un-
derstanding of the concept of ‘competitiveness of com-
mercial banks' choice of subject and study accounting
factors determining the competitiveness of the bank and
the identification of indicators that characterize it.
According to author’s opinion competitiveness of
commercial banks as integral characteristics of its oper-
ations, the bank's method of estimating the competitive-
ness involves the use of an integrated indicator that can
be represented as a composition system of private crite-
ria. The integral indicator, as opposed to private, pro-
vides a comprehensive picture of the competitiveness of
the bank. At the same time the use of private indicators
helps to identify the vast and critical position of the bank
in certain areas of its operations, it is necessary for the
formation mechanism of improving the competitiveness
of the bank.
In our opinion the final integrated assessment
should take into account important factors and criteria
that shape the competitiveness of the bank, evaluation
and display the main consolidated group settings. Thus,
these criteria can be expressed by a number of quantita-
tive and qualitative indicators that should the most cor-
rect and fully reflect the quantitative and qualitative
characteristics of the competitiveness of the bank be-
cause of how performance adequately express the es-
sence of the phenomena studied depends evaluation re-
sults.
We believe in establishing competitiveness indica-
tors of the bank should proceed with their compliance
with certain requirements, the most significant of which
are:
1. Informative (complete and versatile display in-
formation about the contents of the object of study);
2. Reliability (accurate and objective reflection of
the investigated processes);
3. Adequacy (adequately reflected the changes tak-
ing place with the object of research);
4. Specificity;
5. Optimality (choice of indicators to avoid exces-
sive detail with sufficient breadth of content object of
study and minimize the cost of collection, processing
and use of data);
O. V. Derevyanko
86
Економічний вісник Донбасу № 4(42), 2015
6. Dynamism;
7. Comparability (possibility of comparison on the
subject and the object of study period, the calculation
methodology);
8. Complementarity (matching task, each figure
should be focused on measuring progress in addressing
specific tasks);
9. Additive (the ability to aggregate);
10. The complexity (compatibility and comple-
mentarity of indicators reflecting the totality of charac-
teristics of the object of study).
According to the author's methodology compara-
bility of performance achieved by transferring their
counterparts in quality and bringing the total base, de-
termined in accordance with specified levels of compet-
itiveness.
Qualitative analogues is calculated as follows:
= ( )( ) + 1 (1)
– value analysis and quality of i-indicator of the
competitiveness of the bank;
– value of i-indicator competitiveness bank; , – minimum and maximum values of i-
indicator of competitiveness bank;
N – number of levels of competitiveness.
The number of target levels of competitiveness de-
pends on the nature of the solving problem. In accord-
ance with the objectives of our research, we have iden-
tified five levels of competitiveness:
low;
below average;
average;
above average;
high.
Transformation of the rates in qualitative ana-
logues is implemented by splitting the scale of values of
each indicator on a number of intervals; thus the com-
petitiveness index estimated the bank enters the interval,
at the level of competitiveness in the adopted scale.
In this case the integrated indicator calculated by
the formula:
= ∑ ( ∗ ) (2)
– total weighted assessment of the competitive-
ness of the bank;
– value of quality analogue of i-indicator bank
indicator of competitiveness;
– factor of significance of i-indicator.
When grouping performance analog on the degree
of their dependence on the influence of internal or
external environment banks integrated assessment of the
competitiveness of banks is the formula:
= ∑ ( ∗ вт) + ∑ ( ∗ вн) (3)
– total weighted assessment of the competitive-
ness of the bank;
– values of analogue indicators, reflecting the
impact of internal factors of competitiveness bank;
– values of analogue indicators, reflecting the
impact of external factors of competitiveness bank; вт, вн – significance of factors internal and ex-
ternal factors.
When you select groups of indicators of the com-
petitiveness of private banks criteria, the formula for
calculating the integral indicator can be presented as fol-
lows:
= Кк + Км + Кв, (4)
– total weighted assessment of the competitive-
ness of the bank; Кк – important criterion competitive banking ser-
vices; Км – important criterion bank in the banking mar-
ket; Кв – criterion value retention capabilities bank of
its position in the market.
Since each of the partial criteria of competitiveness
can be expressed by a number of indicators, the value of
private criteria defined in turn as the sum of the values
that characterize its performance analog weighted their
importance and the integral index formula is as follows:
= ∑ ( ∗ ) + ∑ ∗ + ∑ ( ∗ ) (5)
– total weighted assessment of the competitive-
ness of the bank;
– value of analogue indicators characterizing
competitiveness criterion banking services;
– values of analogue indicators that characterize
the criterion of the bank in the market of banking ser-
vices;
– values of analogue indicators that characterize
the possibility of retention criterion bank of its position
in the market;
, , – factors of significance indicators of the
competitiveness of private banking criteria, local banks
in the banking market and the possibility of the bank
keeping its position in the market.
One of the important conditions is the correct
choice of integrated assessment methods aggregation of
indicators included in the basis of calculation. If the
weights are determined arbitrarily, without sufficient
theoretical or empirical evidence, the results of inte-
grated assessment may be distorted.
The expert procedures are often used to determine
the weights associated with a significant amount of time
depends on the competence of the experts and is, as
noted, subjective. To minimize the risk of subjective and
incorrect assessments we propose to use to determine
the relevance of indicators of competitiveness of banks
methodological procedure based on the use of infor-
mation entropy formula K.E. Shannon.
Н = ∑ log1 (6)
O. V. Derevyanko
87
Економічний вісник Донбасу № 4(42), 2015
H – amount of information;
– probability K-events
This formula can be used to determine the spread
of values for each indicator, if instead of using probabil-
ity relative frequency of the random variable (evalua-
tion) for each indicator will be used. Thus, all properties
receive their value; while with changing characteristics
over time and, accordingly, changing their significance
used an approach would adequately reflect the changes
taking place.
Based on the selection criteria of competitiveness
base of commercial banks, the results of comparative
analysis methodologies to assess competitiveness and
taken account of the requirements for performance, we
have identified the following groups of indicators char-
acterizing the basic criteria of competitiveness of banks.
Table 2
Criteria and indicators of competitiveness of commercial banks
Criteria
Indicator
Quantitative Qualitative
The competitiveness of banking services
reflects the attractiveness of the service
to the consumer compared to competing
services, the ability of the bank to effec-
tively use your business potential
The cost of banking services in the context of
the main types of tariffs for services
The quality of banking services in terms of
their basic types: the breadth of the range of
services provided; consumer's properties of
services; speed of service delivery; the level
of customer service and culture; sold quality
of service; forms of promotion services
The place of banks in the banking mar-
ket - describes the significance of the
bank, its position in the banking market
compared to competitors
The share of net assets of the bank in the total
value of the net assets of the banks in the re-
gion; the share of deposits of individuals in the
total value of bank deposits of individuals in
banks in the region; share of enterprises and or-
ganizations involved in the total value of bank
funds of enterprises and organizations in-
volved banks in the region; the share of bank
loans to individuals in the total value of loans
granted by banks to individuals in the region;
the share of bank loans to companies and or-
ganizations in the total value of loans granted
by banks to companies and organizations in the
region
Persistence and by developed market posi-
tions: universal bank; key areas of activity;
development of new activities of the bank;
the duration of the financial market; a de-
veloped network of branches and repre-
sentative offices; the degree of participation
of the bank in socio-economic life of the re-
gion
The ability of banks to retain market po-
sition - defined business potential bank,
consisting of distinguished financial and
non-financial components
The financial component: assessment of capi-
tal share of capital in liabilities, capital ade-
quacy ratio, the level of capital intensity; rating
liabilities: the share of obligations in liabilities,
the share of deposits of private entrepreneur in
the commitments, the share of enterprises and
organizations in commitments efficiency ratio
of borrowed funds; valuation of assets: the
share of loan debt ratio, the share of overdue
loan debt in the total loan debt, the ratio of re-
serves to assets and the level of highly liquid
assets, efficiency ratio of the assets; the liquid-
ity of the bank: quick liquidity ratio, current ra-
tio, the rate of long-term liquidity; yield and
profitability: return on assets, return on assets,
return on capital.
No financial component: assessment of the
quality and impact of bank owners, trans-
parency of ownership structure, the pres-
ence of regulatory owners; evaluation of the
quality of corporate governance of the bank:
the image of the head, the effectiveness of
organizational management structure, the
impact on holders of bank management,
protection of minority shareholders, clients
and partners; effectiveness and independ-
ence of operational management, profes-
sional top management, personnel policy,
the effectiveness of risk management, the
level of technical and technological equip-
ment, the quality of the information policy;
the availability of non-financial risks: the
risk of ineffective strategies, reputation risk,
the impact of significant changes
Apparently, to determine the competitiveness of
commercial banks in the evaluation system includes all
the important parameters of their activities.
Comparison of competitiveness of commercial
banks (both quantitative and qualitative) provided by
their counterparts in quality translation by formula (1).
The resulting figures are placed in appropriate intervals
of the scale, which includes five levels of competitive-
ness. Integral criteria of competitiveness and private
commercial banks calculated taking into account the im-
portance of indicators - qualitative counterparts, which
are determined using the formula of information en-
tropy.
Qualitative indicators are evaluated on a model that
involves the use of a 100-point scale and method of
"ideal bank" or "Happy competitor." Growth competi-
tiveness is measured in the following way:
0-30 points - low level - bank outsiders that lose
the competition, have competitive advantages and is un-
competitive in the banking market;
31-50 points - the level below average - weak
banks are gradually losing competitive advantages and
is unable to provide sufficient competitiveness;
O. V. Derevyanko
88
Економічний вісник Донбасу № 4(42), 2015
51-70 points - average - banks followers with too
few competitive advantages and do not have sufficient
competitiveness;
71-90 points - above the average level - this level
are trailing leaders banks that have sufficient competi-
tive advantages and have potential for growth;
91-100 points - the highest level - this level with
leading banks that have major competitive advantages
and high level of competitiveness.
For practical assessment of competitiveness and
determining the competitive advantages of commercial
banks, using proprietary methods, we conducted re-
search. The author chose to analyze group of leading
Ukrainian banks, which operate on the regional banking
market - in Zaporozhye. The structure of the estimated
group of banks included such leading banks as PJSC
«Privatbank», JSC «Oschadbank», PJSC «PUMB»,
PJSC «Alfa Bank», PJSC «Ukrsotsbank», PJSC «OTP
– Bank». The choice of these banks in the subject of re-
search is due to the fact that they are active in all seg-
ments of the banking market and take an active position
in the regional market.
The resulting assessments that determine the com-
petitiveness of an integrated banking market, taking into
account all aspects of banking and sources of competi-
tive advantage can be presented in a table 3.
Fig. 2. Polygon competitiveness of banks in the banking market in Zaporizhzhya
Table 3
Integrated assessment of banks' competitiveness in the regional market of banking services in Zaporozhye
№ Bank
The competitiveness of
banking services
The place of banks in the
banking market
The ability of banks to
retain market position
The overall indicator
Rating Inter-pretation Rating Inter-pretation Rating Inter-pretation Rating Inter-pretation
1 PJSC "Privatbank" 91 Leader 95 Leader 91 Leader 92,33 Leader
2 JSC "Oschadbank" 72 Persecutor 91 Leader 96 Leader 86,33
Contender for
leadership
3 PJSC "PUMB" 73 Persecutor 84 Persecutor 80 Persecutor 79 Persecutor
4 PJSC "Alfa Bank" 71 Persecutor 60 Follower 60 Follower 63,66 Follower
5 PJSC "Ukrsotsbank" 60 Follower 50 Weak bank 50 Weak bank 53,33 Weak bank
6 PJSC "OTP - Bank" 60 Follower 60 Follower 50 Weak bank 56,6 Follower
Conclusions. Practical application of the proposed
technique has allowed banks to assess the competitive-
ness of the regional banking market in the city Zapo-
rozhye. The estimation showed that the banking market
in Zaporizhzhya undisputed leader is PJSC «Privat-
bank», which has sufficient competitive advantages in
all areas and is able to significantly outpace its compet-
itors. The main competitor of PJSC «Privatbank», to
lead now is JSC «Oschadbank», primarily due to its high
market activity, a wide coverage of the regional market
distribution network, strong customer base and product
line banking. However, lack of operational efficiency
and deterioration recently integrated quality manage-
ment reduce its level of competitiveness. Among the
promising banks, which can then become active perse-
cutors leaders is to provide first PJSC «PUMB» and
0
0,2
0,4
0,6
0,8
1
Number of subsidiaries,
branches and
representative offices,
units
Market share, %
The product range,
positions
The customer base, mln.
People
Deposit portfolio bln.
UAH
The loan portfolio, bln.
UAH
PJSC "Privatbank
JSC "Oschadbank"
PJSC "PUMB"
PJSC "Alfa Bank"
PJSC "Ukrsotsbank"
PJSC "OTP - Bank"
O. V. Derevyanko
89
Економічний вісник Донбасу № 4(42), 2015
PJSC «OTP Bank». These banks are developing quite
dynamically and effectively as they observed high levels
of operating activity. The key to this is greatly effective
management, prospective customer base and high qual-
ity work with clients. Also we noted that an important
role in ensuring the overall competitiveness of the banks
owned by the quality of banking services that is offered.
Consequently, the proposed feature of the author's
technique is to use a combination of:
• methods of multidimensional comparative analy-
sis that takes into account not only absolute levels of
competitiveness of each bank, but the degree of approx-
imation to the minimum and maximum values of other
banks;
• methods of quality statistics to calculate quality
indicators and their analogs positioning interval scale
competitiveness;
• ways of aggregating indicators to measure the
competitiveness of banks based on the concept of infor-
mation entropy and formula of K.E. Shannon guarantee-
ing objectivity of determining the relative importance of
these factors in the formation of integrated indicator.
References
1. Hirchenko T.D. Strategy competitiveness of
banks in terms of revitalization of the banking market /
T.D. Hirchenko // Regional Economics (Ukr.). –
2003. – № 4. – P. 122-127. 2. Kudasheva Y.S. Com-
ments competitiveness of commercial banks / Y.S. Ku-
dasheva // Money and credit (Rus.). – 2006. – № 11. –
P. 46-52.
Дерев’янко О. В. Оцінка конкурентоспромо-
жності комерційного банку та методика вияв-
лення конкурентів на ринку банківських послуг
Статтю присвячено дослідженню методологіч-
них та практичних проблем оцінки конкурентоспро-
можності банків на ринку банківських послуг. До-
сліджено методичні підходи до оцінки конкуренто-
спроможності комерційних банків, виявлено основ-
ні недоліки існуючих методик оцінки конкуренто-
спроможності банків. Розроблено методику оцінки
конкурентоспроможності банку за допомогою ін-
тегрального індикатора, який дозволяє отримати
комплексне уявлення про конкурентоспроможність
банку, сприяє виявленню як переважних, так і кри-
тичних позицій банку за окремими напрямами ді-
яльності, що необхідно для формування механізму
підвищення його конкурентоспроможності.
Ключові слова: індикатор, банківська конкуре-
нція, конкурентоспроможність банку, конкурентні
переваги банку, конкурентна позиція банку, інтегра-
льна оцінка конкурентоспроможності.
Деревянко А. В. Оценка конкурентоспособ-
ности коммерческого банка и методика выявле-
ния конкурентов на рынке банковских услуг
Статья посвящена исследованию методологи-
ческих и практических проблем оценки конкуренто-
способности банков на рынке банковских услуг. Ис-
следованы методические подходы к оценке конку-
рентоспособности коммерческих банков, выявлены
основные недостатки существующих методик
оценки конкурентоспособности банков. Разрабо-
тана методика оценки конкурентоспособности
банка с помощью интегрального индикатора, кото-
рый позволяет получить комплексное представле-
ние о конкурентоспособности банка, способствует
выявлению как преимущественных, так и критиче-
ских позиций банка по отдельным направлениям де-
ятельности, что необходимо для формирования ме-
ханизма повышения его конкурентоспособности.
Ключевые слова: индикатор, банковская конку-
ренция, конкурентоспособность банка, конкурент-
ные преимущества банка, конкурентная позиция
банка, интегральная оценка конкурентоспособно-
сти.
Derevyanko A. V. Assessment of Competitive-
ness of Commercial Banks and Method of Detection
Competitors in the Banking Market
The article is dedicated to the research of method-
ological and practical problems of assessing the compet-
itiveness of banks in the banking market.
It was studied methodical approach to the evalua-
tion of the competitiveness of commercial banks, found
the main shortcomings of existing banks competitive-
ness evaluation methods. It was developed the method
of valuation of bank competitiveness through integral
indicator, which allows you to get a comprehensive pic-
ture of the competitiveness of the bank, helps to identify
a pre-emptive, and the critical position of the bank on
individual areas of activity that is necessary for the for-
mation of mechanism of increasing its competitiveness.
Keywords: indicator, banking competition, the
competitiveness of the bank, the bank's competitive
edge, the competitive position of the bank, integrated as-
sessment of competitiveness.
Received by the editors: 13.10.2015
and final form 28.12.2015
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