Accounting and Control of Equity Capital in Banking Institutions of Ukraine: Search for Steps to Improve Efficiency

Abstract

The article is devoted to analysis of accounting and control of equity capital in banking institutions of Ukraine amidst the full-scale military invasion and determining strategic prospects for enhancing the efficiency of equity capital in the conditions of revitalization of the national economic system.

The research objective was achieved using the following methods: analysis and synthesis – to analyze the features of the formation of equity capital in banking institutions of Ukraine banking institutions in Ukraine; comparative statistical analysis – to compare statistical data on the dynamics of financial stability indicators in banking institutions of Ukraine in 2020–2023; critical analysis of the core and additional capital in banking institutions of Ukraine in terms of components in 2020–2024; predictive method – to determine promising strategic areas for monitoring the equity capital in banking institutions of Ukraine in the context of the full-scale military invasion.

The analysis covers the main performance indicators of banking institutions in Ukraine in the first quarter of 2025. A graphical representation of the growth rates of the main components of the additional capital in banking institutions of Ukraine in 2020–2024 is given, which demonstrates a declining trend in the above economic indicators and confirms a destabilized economic situation and the low effectiveness of the protective function of the additional capital in banking institutions of Ukraine.

The study allowed for formulating substantiated proposals on the areas of monitoring the equity capital in banking institutions of Ukraine in the conditions of a full-scale military invasion: developing and implementing a strategy for managing the banks’ equity capital; launching a scheme for creating bank holdings and alliances; compiling methods for determining the cost of the bank’s capital; “smoothing” indicators of the efficiency of using the bank’s resources. The synergistic effect of the abovementioned areas allows for forecasting the steps to increase the efficiency of accounting and control of equity capital in banking institutions in the conditions of turbulent economic transformations in Ukraine.