THREATS AND RISKS OF FINANCIAL SECURITY OF BANKS AND WAYS TO ELIMINATE THEM

Abstract

The banking system is associated with the risk of information leakage,employee abuse, and external threats. The state of the modern domesticfinancial market, the imperfection of the legislation, the decline in incomes of the population and business, the increase in the unemployment rate are the reasons why new threats to banking activity are emerging. The article defines the concept of «financial security of the bank», given definitions «risk», «threat». The analysis of the relationship of the terms «risk» and «threat». The basic threats of constituents of a bank economic safety and the basic measures of defense and their removals are offered. The classification of threats to the bank’s security is observed. It includes exogenous and endogenous factors together with current trends of increasing influence of anthropogenic factors and aggravation of conflicts at various levels, such as military, corporate, stakeholders, bank-staff, and bank-customer. The analysis of the statistics of the banking system functioning under conditions of the current crisis is made. A cricial diagnosis of the banks operations wasconducted by the National Bank of Ukraine. In general, to improve thesecurity of banking institutions, the following should be done:- development of a model of security of banking institutions as a set ofofficially accepted views, institutions;- creation of an information-analytical base for monitoring the securityof banking institutions;- restructuring of the existing banking sector of the national economy;- activation of commercial banks’ own sources of development byintroducing appropriate incentives by the Government and the National Bank of Ukraine;- development and use of differentiated, ie strategic, tactical, andcurrent indicators of the security of banking institutions;- assessment of the level of adequacy of the security of bankinginstitutions by measures and resources.An adequate level of financial security for banks is possible only if aneffective system for detecting, classifying, localizing threats and regulating the risks of the banking system is possible.