The structure-functional analysis of the financial stability of the banking system with the use of Kohonen maps

The financial analysis of banks and risk management systems’ effectiveness takes significant place in the system of banking supervision. To ensure an adequate remote control of bank activity it is necessary to use the set of instruments adapted to the structure and profile of risks at certain stages of system developing and separate structural and functional banks groups. The article is dedicated to the elaboration of the theoretical and methodological principles and practical tools of organization of the supervision in Ukraine in the transition conditions from micro to macroprudential bank supervision. The purpose of the article is developing approaches to the forming of medioprudential supervision system, picking out homogeneous structural and functional groups of banks as the objects for supervision, elaborated criterion basis for the picking up groups of banks, formalized their identifiable characteristics, suggested approaches to the early diagnostics of the banks financial stability loss threats, supervision activities differentiation according to the specification of the groups of banks. The subject of this study is toolkit reform of banking supervision in Ukraine using structural and functional analysis. Author proposed a differentiated approach to indi¬vidual structural and functional bank groups and dynamic modeling of banks financial condition with the help of Kohonen self-organizing map. Scientific novelty of this approach is to move from a technique grouping banks on the sizes of assets to grouping them in structural and functional characteristics. This allows you to direct the resources of banking supervision on high-risk areas. Financial indicators of a certain bank obtain a new qualitative assessment, taking into account his place in a variable system of banking system indicators.