Financial Mechanism for Managing the Assets and Liabilities of Banks

The complexity and versatility of the managing for bank's activity requires a balance of assets and liabilities, which are interrelated, and necessitates the formation of the financial mechanism for their management. The purpose of the article is to expansion definitional characteristics of the concepts "asset and liability management of banking institutions" and "financial mechanism for managing the assets and liabilities of commercial banks", to form a structure of the financial mechanism for the balanced management of assets and liabilities of banking institutions based on determination of methods and tools for managing assets and liabilities. The basis of the study is a systematic approach to the process of asset and liability management, used in determining the content and construction of the financial mechanism of asset and liability management of the bank. The essence of the concepts "financial mechanism" and "management of assets and liabilities of the bank" was considered. This made it possible to methodize the main tasks of the banks in the process of asset and liability management. According to the authors, the process of asset and liability management of the bank is a general concept of the banks development, which consists in the integrated management of financial flows of the bank to coordinate management decisions and ensure certain proportions between active and passive operations in order to achieve the next goals: increasing profits; reducing risks; liquidity control; spread management. It was proved that the financial mechanism of assets and liabilities management of a banks, as a component of the mechanism of banking financial management, is a system of objects, subjects, strategies, approaches, tools, means, levers, methods and models of assets and liabilities management of banks, taking into account the principles of strategy and levels of the bank management. The reasons and necessity of the formation of the financial mechanism through the imbalance of assets and liabilities, as well as the financial policy of the bank were investigated. The structure of financial mechanism of bank assets and liabilities management with allocation of strategic, tactical and operational components was formed.