TARGET PRICING IN BANKING MARKETING: UKRAINIAN BANKS CASE
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| Title: | TARGET PRICING IN BANKING MARKETING: UKRAINIAN BANKS CASE |
| Authors: | Zherdetska, Liliia |
| Affiliation: | Odessa National University of Economics 8 Preobrazhenskaya str., 65082, Odesa, Ukraine e-mail: lzherdetska@gmail.com |
| Bibliographic description: | Zherdetska, L. (2019) Tsilove tsinoutvorennia v bankivskomu marketynhu: pryklad ukrainskykh bankiv [Target pricing in banking marketing: ukrainian banks case]. Sotsialno-ekonomichni problemy i derzhava [Socio-Economic Problems and the State] (electronic journal), Vol. 21, no. 2, pp. 75-87. Available at: http://sepd.tntu.edu.ua/images/stories/pdf/2019/19zlvpub.pdf |
| Issue Date: | dec-2019 |
| Submitted date: | oct-2019 |
| Publisher: | Ternopil Ivan Puluj National Technical University |
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DOI: |
https://doi.org/10.33108/sepd2019.02.075 |
| UDC: | 336.7 |
| JEL: | G320 |
| Keywords: | banks target pricing banking marketing risk-weighted return on equity |
| Pages: | 75-87 |
| First page: | 75 |
| Last page: | 87 |
| Abstract: |
Methodological approaches for conducting an operational cost analysis of banks' interest-bearing assets have been developed in the research. The correlation between the components of banking products price and the profitability (loss) of Ukrainian banks has been determined. The trend of interest rates on interest-bearing assets increase since the beginning of 2014 and their gradual rise in 2017 has been recorded. This growth took place primarily due to the significant increase in the level of credit risk and the cost of forming reserves, and, to a lesser extent – the increase in the cost of resources. These negative trends have led to an increase in banking losses in 2016 which exceeded the values of previous years and amounted to - 10% of banks’ incomes. The current crisis (in the conditions of insufficient development of the stock market of Ukraine), unlike the increase in credit risk in 2009 which was preceded by a significant increase in systemic risk associated with global financial instability, is affected not by the general level of systemic risk, but the credit one, still remaining the main for the Ukrainian banks in terms of impact on their financial results. It is concluded that the high level of interest rates primarily reflects the significant risk of lending activities of the Ukrainian banks. At the same time, the reduction of costs for the formation of reserves for credit operations results in the resumption of banks profitability in 2018 and an increase in the rate of return in the first half of 2019. The Ukrainian banks have been grouped according to the level of return on the shareholders’ equity. They have been divided into planes according to the share in the credit market and the share of profit in the price. The carried out analysis testifies that the most profitable banks have a high capital multiplier and a high level of non-interest income that is not exposed to credit risk. On this basis, depending on the share in the credit market and the share of profit in the price, the recommendations for target pricing strategies have been justified, taking into account the risk-weighted return on equity ratio. Keywords: banks, target pricing, banking marketing, risk-weighted return on equity. |
| URI: | http://elartu.tntu.edu.ua/handle/lib/30948 |
| ISSN: | 2223-3822 |
| Copyright owner: | Scientific Journal "Socio-Economic Problems and the State" |
| URL-releated material: |
http://sepd.tntu.edu.ua/images/stories/pdf/2019/19zlvpub.pdf Scope_for_boosting_cust.pdf |
| References: |
1. Hladkykh, D. (1999) Tsinova struktura bankivsʹkykh posluh ta kredytnykh resursiv v Ukrayini [Price structure of banking services and credit resources in Ukraine]. Visnyk NBU (Bulletin of the National Bank of Ukraine), № 3, pp. 50 - 51. Scope_for_boosting_cust.pdf. |
| Issue type: | Article |
| Appears in Collections: |
Scientific Journal "Socio-Economic Problems and the State", Vol.21, No.2
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