Resource Base of Commercial Banks and Its Role in Mechanism of Banking Activities

The banking system is an important part of the economy which mobilizes temporarely free cash flow and converts them into a functioning capital. Increasing the volume of bank resources contributes to the stable operation and its further development. The ability of the banks to conduct credit transactions, the development of investment activities, provisioning and support of financial stability, liquidity will depend on their qualitative formation of the resource base. That is the commercial banks face the burning problem of effective development and use of the resource base. Today the process of an effective management of the financial component of the resource potential of the banks and the reason becomes complicated due to the world financial crisis and its particularly acute manifestations are in Ukrainian economy in the form of numerous bank failures and limited ability to pay a number of commercial banks against the backdrop of political instability. The poor financial state of the borrowers, low incomes, which requires the creation of substantial reserves and complicates the formation of the resource base of commercial banks has a negative impact on banking activities. The article is aimed to the analysis of the main theoretical and practical problems of the process of forming the resource base of PC OTP Bank and its role in the mechanism of the banking business. The working out of a mechanism on management and control of the formation of the resource base and development of the criteria of the influence of the resource base in the banking business, which in practical terms facilitates the selection of the most effective tools of financial management and implementation of continuous monitoring of the dynamics and structure of the resource base, the justification of the ways to further improvement of the process of formation the resources at the level of individual banks and the banking system as a whole is one of the elements of scientific innovation. The size of bank profits depends on the optimal balance of their own, involved and borrowed funds in the financial market which are used for active operations and services.