| Issue: | 2026 №1 (93) |
| Section: | Finance, Banking, Insurance and Stock Market |
| UDK: | 336 |
| DOI: | https://doi.org/10.33271/ebdut/93.129 |
| Article language: | Ukrainian |
| Pages: | 129-137 |
| Title: | Methods of optimizing the capital structure of a commercial bank: a critical analysis of approaches |
| Authors: | Felenko V. P., Dnipro University of Technology,
Kubetska O. M., Dnipro University of Technology |
| Annotation: | Methods. The methodological basis of the study is a systemic approach to analyzing the capital of banking institutions, which considers its structure as an integral mechanism of interaction between own and borrowed funds in the dynamics of risk and profitability. The system analysis method makes it possible to identify the structural elements of a commercial bank’s capital and study their functional interaction. The comparative method was applied to assess the efficiency of various theoretical approaches – classical, compromise, and risk-oriented. Financial analysis methods were used to quantitatively evaluate the relationship between risk and profitability, as well as to calculate key indicators such as Return on Equity (ROE) and Weighted Average Cost of Capital (WACC). The generalization and abstraction methods made it possible to formulate generalized conclusions and develop practical recommendations for optimizing the capital structure of commercial banks. Results. The study found that the capital of banking institutions is a key factor in ensuring financial stability and competitiveness. It was determined that equity performs a protective function and forms depositor confidence, while borrowed capital increases the development potential but simultaneously amplifies financial risks. The effectiveness of using ROE and WACC indicators to determine the optimal balance between profitability and stability was substantiated. A practical analysis of the dynamics of the regulatory capital of Ukrainian banks showed recovery after wartime shocks in 2023–2024 and an increase in capitalization to over UAH 260 billion. This confirms the adaptability of the banking sector to new risks and the growing role of an integrated capital management model focused on combining economic performance. Novelty. The scientific novelty of the study lies in clarifying the theoretical approaches to optimizing bank capital structure under wartime and macroeconomic risks. The research systematizes their impact on the formation of own and regulatory capital and identifies the interrelation between ROE, WACC, RWA, LCR, and NSFR indicators. The conditions for applying risk-oriented and efficiency-based approaches are refined in the context of NBU regulations and Basel III/IV standards, enabling a balanced combination of bank profitability and financial stability requirements. Practical value. The research results can be applied in the activities of commercial banks to improve capital management policies, enhance investment attractiveness, and ensure compliance with Basel III/IV and NBU standards. The proposed approach contributes to the creation of an effective capital monitoring system and strengthens the resilience of the banking sector under wartime and macroeconomic challenges. |
| Keywords: | Bank capital, Optimization of capital structure, ROE, WACC, Financial stability, Basel III, N1, N1, LCR, NSFR |
| File of the article: | EV20261_129-137.pdf |
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