THEORETICAL-CONCEPTUAL APPROACHES TO IMPROVING THE CONCEPTUAL BASIS OF THE EFFICIENCY OF COMMERCIAL BANKS’ ASSETS

Abstract

This article discusses the theoretical and conceptual foundations of improving the efficiency of commercial banks' assets and ways to improve them. The study analyzes the economic content and interdependence of the main financial indicators used to assess the efficiency of bank assets - return on assets (ROA), return on equity (ROE), share of non-performing loans (NPL) and loan-to-deposit ratio (LDR). Also, the inverse relationship between ROA and NPL and the scale effect between the volume of assets and profitability are scientifically substantiated. According to the results of the study, it was found that the efficiency of bank assets is directly dependent not only on the volume of assets, but also on their quality, risk level and management efficiency. Based on the analysis conducted in the article, theoretical and practical recommendations were developed to improve the activities of commercial banks