UDC 336.71:658.014.1(477)
Denys, O. B. (2014). Tendentsiyi proyavu korporatyvnykh konfliktiv u bankivs'komu sektori Ukrayiny [Trends of appearance of corporate conflicts in Ukraine’s banking sector]. Rehional'na ekonomika - Regional Economy, 72(2), 148-155. [in Ukrainian].
Sources: 8

Authors

Resume

Among the problems of the banking sector in Ukraine corporate conflicts in banks occupy an important place, because corporate conflicts are an integral part of banking activity and can not be completely avoided.

The aim of the paper is to study trends in the occurrence of corporate disputes in the banking sector of Ukraine.

The research of such aspects helped theoretically to identify two forms of corporate conflicts: conflicts between the owners of the bank and conflicts between resource owners and persons who dispose it (conflict “principal-agent”).

Empirical research of trends of occurrence of corporate conflicts in Ukraine’s banking sector has shown that key corporate conflicts in banks of Ukraine are conflicts category “principal-agent” between the bank and customers that arise in the implementation of all basic banking transactions: credit, deposit and settlement and payment.

The analysis shows different prerequisites of conflicts appearance with clients. At the core of most corporate conflicts that occur during the credit operations is misrepresentation and fraud. Conflicts that arise with deposit operations usually occur due to unprofessional or deliberate actions of managers and employees of banks. A typical manifestation of opportunistic behavior in this case is evasion and theft. A distinctive feature of conflict- settlement and settlement services is that they arise from the actions of bank employees or third parties, and are in the form of theft.

Empirical studies allowed to identify these underlying causes that contribute to the emergence of corporate conflicts in banks of Ukraine: not limited legislation monopoly of major shareholders; absence in many banks of due diligence of existing and potential customers and their business projects for which funding is available; imperfect control system for the owner of deposit accounts; insufficient level of financial literacy monitoring and individual clients; insufficient attention to the bank’s recruitment.

It is concluded that to prevent the emergence of corporate conflicts is possible by conducting the following: formulation of procedures regulating transactions with related parties intended to limit the monopoly holder in management decisions; establish clear requirements for uniform standards and procedures documentation loans from banks; strengthening the regulatory functions of regulators to protect the rights of bank customers, which is manifested in the formation of banking supervision and regulation; forming the regulatory procedure of workers violations.

Keywords:

bank, corporate relations, members of corporate relations, corporate conflict