Analysis of Business Models of Ukrainian Banks

Today in Ukraine, the largest share of activity risks concerns the banking sector, because the activities of banking institutions directly depend on the economic and political situation in the country. The purpose of the article is to carry out a cluster analysis of business models of Ukrainian banks, to identify risks for such models, and to justify the main ways to minimize them. The business model of the bank defines the basic concepts and objects that make up the content of the banking business, as well as the relationship between them. To assess the level of financial stability of banks, the authors proposed a system of indicators, which consists of 12 indicators calculated for each bank. Descriptive statistics of variables of Ukrainian banks business models was disclosed. Cluster analysis of business models of Ukrainian banks was carried out using the Ward method and the self-organization maps of Kohonen of the determined business models of Ukrainian banks. According to the results of the cluster analysis, the five clusters were identified: Cluster # 1 - banks with a high level of financial stability; Cluster # 2 - banks with a sufficient level of financial stability; Cluster # 3 - banks with an average level of financial stability; Cluster # 4 - banks with a satisfactory level of financial stability; Cluster # 5 - banks with a low level of financial stability. The business model was analyzed, which is typical for the banks of each cluster. The distribution of banks on the Kohonen map shows that the market status and financial stability of the bank are largely related to its resource base and interest policy, with which the asset and liability management policy is agreed. Successful implementation of the development strategy of each bank is characterized by growth rates of its assets.