Theoretical fundamentals of strategy and strategic management in the banking sphere

Cherkasova Mariia
Postgraduate Student of the Banking Department, Odessa National Economic University, Ukraine, e-mail: makedonskaya.m97@gmail.com, ORCID ID: https://orcid.org/0000-0002-5478-650X

Cite this article:

Cherkasova, M. (2021). Theoretical fundamentals of strategy and strategic management in the banking sphere [Teoretychni zasady stratehii ta stratehichnoho upravlinnia v bankivskii sferi], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (78-79), pp. 132–141.

Abstract

The article investigates the theoretical foundations of strategy formation. The role of strategic planning in ensuring the sustainable development of the modern banking system in conditions of increased competition is determined. The aim of the article is the substantiation of the theoretical foundations of strategy and strategic management, taking into account the specifics of banking activities, as well as to search for modern strategic management mechanisms of banking institutions for ensure their effective operation. Theoretical approaches to the definition of the of «strategy» concept by representatives of conceptual, practical, systemic, integrated approaches are analyzed. Based on the generalization of scientific concepts and definitions, the essence and main task of the strategy are investigated. The peculiarities of the strategy modern interpretation in the banking institutions activities are considered, taking into account macroeconomic instability and fast-paced changes in the external environment. The main types of strategies that are used in the strategic management of banking structures are determined: financial, marketing, information technology, personnel management strategy. The concept of «strategic management» is generalized, its place and role in the development of banking institutions are determined. The constituent elements of the bank’s strategic management system are considered and the peculiarities of the modern strategic management of the banking system are determined. It is substantiated that exactly the strategy is a key element of the bank’s strategic management system in the conditions of market economy transformation. The newest methodological concept of the strategic management of banking institutions is considered. It is determined that the majority of Ukrainian banks do not use modern forms and methods of management at the strategic level. It is proposed to introduce modern strategic management mechanisms into the banking institutions activities to improve their efficiency in the process of banking system digitalization.

Keywords

strategy; strategic management; efficiency of banking activity; competition; strategic planning; long-term goals; risks; transformation.

JEL classification: G210; L100; M310; DOI: https://doi.org/10.33987/vsed.3-4(78-79).2021.132-141

UD classification: 336.71: 658.8

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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