Investigation of influence of quality of bank capital on activity risks

Abstract

The question of publishing real financial statements is extremely urgent problem for Ukraine. Intentional concealment of real financial situation in bank becomes systemic disturbance. And if reporting to supervisory bodies in many countries provides serious sanctions on banks and in certain cases leads to liquidation of bank and criminal responsibility of managers, in Ukraine there is an absence of effective system of control and appropriate responsibility of violators. It should be noted that distorted information about financial performance of bank not only decreases effectiveness of taking measures of influence and does not allow supervisory bodies to react on these problems in time, but also leads to continuation of dangerous bank activity and in future – to bankruptcy and liquidation of bank.