KEY FACTORS OF IMPACT ON BUSINESS PLANNING IN BANKS OF UKRAINE UNDER UNCERTAINTY

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 ГРОШІ, ФІНАНСИ І КРЕДИТThe article deals with the key factors of impact on business planning in banks in Ukraine under uncertainty.The current economic situation in which banking institutions operate is analyzed.The authors define the key factors of the external environment on which banks have influence and the factors on which they have no influence and are forced to adapt.The experience of planning in the world banking practice proves that at present it is absolutely important and necessary to carry out this management function for the successful functioning of the bank.Numerous studies prove a strong correlation between the planning and the financial performance results of banks.Moreover, the researches indicate the importance of planning not only at the level of a bank management but also at the level of its branches and other structural units.In order to improve business planning in banks under uncertainty the following procedures should be included: eliminating the negative effect of uncertainty, concentrating of the top managers on the main task of banks' activities, and constant monitoring of the activities of the structural units of banks.Without planning it is difficult to get coordinated actions within a banking institution and to maintain one area of activity in priority without undermining others.The paper determines the role of planning of bank activities which allows to achieve more significant economic results, to develop business, and to be more attractive to investors, partners and clients.In this context, the introduction of business planning for banks will enable them to analyze the operating environment and identify the strengths and weaknesses of banks in order to achieve the determined goals; analyze the actual quantitative and qualitative parameters of banks' cash flows (for the past and current periods); make management decisions to achieve the set goal in the form of specific plans based on the analysis data.Management effectiveness in a bank depends on the quality of the business planning process, since this component ensures a clear coordination of all actions, unity of internal goals, allows to choose the most rational ways of development, reduces the risk of making wrong decisions, and creates preconditions for effective control.

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