THEORETICAL FUNDAMENTALS OF MECHANISM OF BANK FINANCIAL RESULTS MANAGEMENT

In conditions of instability in the financial markets, a critical factor in the bank's functioning and development is the stable receipt of positive financial results, which is evidence of the effectiveness and efficiency of the business model of the financial institution, the quality of risk management and corporate governance. The purpose of the article is to study and develop the theoretical foundations of managing the bank's financial results. Managing the financial results of a commercial bank is a set of interrelated management decisions regarding the process of profit generation, distribution, and use. Аccording to the process approach to managing the financial results of a commercial bank can be defined as a purposeful process of influence of the governing body on the formation, distribution and use of profits, based on strategy and policy, uses appropriate tools and ensures the ultimate goal of commercial bank management. Financial performance management's primary purpose is to ensure the maximization of net profit as the main source of growth of a commercial bank's value. The mechanism of management of financial results of the bank is a set of interconnected management systems — organizational system, support system, the system of procedures, planning system, and control system — close interaction of which ensures successful implementation of the main goal, objectives, and principles of financial management. The organizational system of managing the bank's financial results covers the main purpose, objectives, principles, methods, and levers. Ensuring the management of the bank's financial results includes regulatory, informational, technical, personnel, and organizational components. The strategy and tools form the system of procedures for managing the bank's financial results for managing financial results, which include the analysis and regulation of profit or loss. The system of planning the bank's financial results is to develop an appropriate policy and identify ways to implement it. The control system in the management of the bank's financial results covers verifying the implementation of all management decisions on its formation, distribution, and use for timely detection and correction of deviations of actual results from planned in strategic, current, or operational aspects.