METHODICAL PRINCIPLES FOR APPLICATION OF METHODS OF CLUSTER ANALYSIS IN THE ALLOCATION OF STAGES FOR EXPANSION OF TRANSNATIONAL BANK CAPITAL IN UKRAINE

Abstract

Momot O.M. METHODICAL PRINCIPLES FOR APPLICATION OF METHODS OF CLUSTER ANALYSIS IN THE ALLOCATION OF STAGES FOR EXPANSION OF TRANSNATIONAL BANK CAPITAL IN UKRAINE

Purpose. The aim of the article is the implementation of the phase-out of the expansion of transnational bank capital in Ukraine through the use of cluster analysis methods.

Methodology of research. General scientific and special methods were used in the process of research, in particular, a hierarchical agglomeration procedure of cluster analysis using division into Ward method clusters and Euclidean distance application was used. In order to clarify the results of multidimensional grouping, an iterative method of k-means was used.

Findings. It is established that today the banking system of Ukraine is open to penetration of transnational bank capital. It was discovered that all banks, regardless of the origin of their capital, operate in a single legal field, subject to supervision and regulation on a general basis. It has been determined that in recent years banks with foreign participation have considerably increased their investments in the banking system of Ukraine.

Estimating the quantitative and qualitative components of the penetration of foreign investors into the Ukrainian financial market, the periods of stagnation, as well as the narrowing of the presence of foreign banks, were noted. It was found that such fluctuations are easily correlated with the crises experienced by the banking system of Ukraine.

Originality. The stage of the process of expansion of transnational bank capital in Ukraine has been staged and three phases have been identified (pre-crisis stage – until 2008, crisis stage and post-crisis recovery – 2009-2015, and the stage of increasing the presence – from 2016 till now). Each stage is characterized in terms of the macroeconomic situation, regulatory and legal changes, and the state of the financial market.

Unlike others, this approach is based on hierarchical and iterative methods of cluster analysis, which allowed formalizing the process of phase-out of the expansion of transnational bank capital and allocating homogeneous time periods in the chronology of the activities of transnational banks in Ukraine.

Practical value. The results of the analysis made it possible to specify a set of measures on the state regulation of the activities of transnational banks in Ukraine in the short term perspective.

Key words: cluster analysis; hierarchical methods; Ward method; multidimensional grouping; transnational bank capital; banks with foreign capital.