COMPETITIVENESS OF BANKS AND METHODS OF ITS ASSESSMENT

In the current climate of heightened competition within the banking sector, there is a growing recognition of the importance of enhancing the competitiveness of banks as the primary link in the financial sector of the economy. This is particularly relevant in the context of globalisation and digitalisation of the economy, which have led to the expansion of financial institutions. In light of these developments, this article aims to contribute to the ongoing discourse by exploring the main methods for assessing the competitiveness of the banking system in the context of further financial globalisation. It also seeks to shed light on the features of the methods employed in our country, with the understanding that these approaches may vary significantly across different contexts. It was determined that a number of domestic and foreign methods may not fully consider all aspects of the competitiveness of commercial banks. Recommendations on the determination of a composite indicator of the competitiveness of a commercial bank are offered. The purpose of this study is to analyze the primary methodologies employed in the evaluation of commercial bank competitiveness, with a focus on their respective strengths and limitations. At present, there is an absence of a unifying approach for the assessment of bank competitiveness. Consequently, the identification and implementation of a comprehensive methodology for the evaluation of a commercial bank’s competitiveness is of paramount importance. Methodology: the article uses the methods of comparative analysis, systematization and classification. Keywords: commercial bank competitiveness, interbank competitiveness, commercial bank, factors of competitiveness, methods of competitiveness assessment.