Another issue of scientific journal Vol.28 No.1 2023 has been published

Ukrainian (UA)English (United Kingdom)

Other Categories

Вхід / реєстрація

We are in Facebook


How did you find on our site?


Authors:  Zherdetska, Liliia
Affiliation:  Odessa National University of Economics 8 Preobrazhenskaya str., 65082, Odesa, Ukraine e-mail:
Bibliographic description:  Zherdetska, L. (2019) Tsilove tsinoutvorennia v bankivskomu marketynhu: pryklad ukrainskykh bankiv [Target pricing in banking marketing: ukrainian banks case]. Sotsialno-ekonomichni problemy i derzhava [Socio-Economic Problems and the State] (electronic journal), Vol. 21, no. 2, pp. 75-87. Available at:
Issue Date:  dec-2019
Submitted date:  oct-2019
Publisher:  Ternopil Ivan Puluj National Technical University


UDC:  336.7
JEL:  G320
Keywords:  banks
target pricing
banking marketing
risk-weighted return on equity
Pages:  75-87
First page:  75
Last page:  87

Methodological approaches for conducting an operational cost analysis of banks' interest-bearing assets have been developed in the research. The correlation between the components of banking products price and the profitability (loss) of Ukrainian banks has been determined. The trend of interest rates on interest-bearing assets increase since the beginning of 2014 and their gradual rise in 2017 has been recorded. This growth took place primarily due to the significant increase in the level of credit risk and the cost of forming reserves, and, to a lesser extent – the increase in the cost of resources. These negative trends have led to an increase in banking losses in 2016 which exceeded the values ​​of previous years and amounted to - 10% of banks’ incomes. The current crisis (in the conditions of insufficient development of the stock market of Ukraine), unlike the increase in credit risk in 2009 which was preceded by a significant increase in systemic risk associated with global financial instability, is affected not by the general level of systemic risk, but the credit one, still remaining the main for the Ukrainian banks in terms of impact on their financial results. It is concluded that the high level of interest rates primarily reflects the significant risk of lending activities of the Ukrainian banks. At the same time, the reduction of costs for the formation of reserves for credit operations results in the resumption of banks profitability in 2018 and an increase in the rate of return in the first half of 2019.

The Ukrainian banks have been grouped according to the level of return on the shareholders’ equity. They have been divided into planes according to the share in the credit market and the share of profit in the price.

The carried out analysis testifies that the most profitable banks have a high capital multiplier and a high level of non-interest income that is not exposed to credit risk. On this basis, depending on the share in the credit market and the share of profit in the price, the recommendations for target pricing strategies have been justified, taking into account the risk-weighted return on equity ratio.


Keywords: banks, target pricing, banking marketing, risk-weighted return on equity.
ISSN:  2223-3822
Copyright owner:  Scientific Journal "Socio-Economic Problems and the State"
URL-releated material:



1. Hladkykh, D. (1999) Tsinova struktura bankivsʹkykh posluh ta kredytnykh resursiv v Ukrayini [Price structure of banking services and credit resources in Ukraine]. Visnyk NBU (Bulletin of the National Bank of Ukraine), № 3, pp. 50 - 51.
2. Jarerah, T. (2009) Proposal form to use target system cost for upgrading pricing decisions. Administrative Journal, 31(116), pp. 81-106.
3. Bayou, M. E. (1998) Three Routes for Target Costing. Managerial Finance. Ph.D. Thesis, School of Management, University of Michigan-Dearborn.
4. Farouq Al Azzam (2013) Extent of the Target Cost Application in Commercial Banks in Aqaba Special Economic Zone. Asian Journal of Finance & Accounting. Vol 5, No 1.
5. Suleiman El-Dalahmeh (2018) Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries. Asian Journal of Finance & Accounting. Vol 10, No 1.
6. Matarneh, G. F.,. EL-Dalabeeh, A.-R. Kh (2016) The Role of Target Costing in Reducing Costs and Developing Products in the Jordanian Public Shareholding Industrial Companies. International Journal of Academic Research in Accounting, Finance and Management Sciences. Vol. 6, No. 4, pp. 301–312.
7. McKinsey Corporate Banking (2016) Price to Win. Create value through smarter pricing in a competitive interest rate environment.
8. Wruuck, P. (2013) Pricing in retail banking. Scope for boosting customer satisfaction & profitability. DB Research. Available at:

9. Price optimization in retail consumer lending (2017). Available at:
10. Utku, О. (2019) Сommercial banking re-engineered. How digital and analytics can shape B2B banking? Available at:
11. Dani nahlyadovoyi statystyky NBU [NBU Supervisory Statistics Data]. Available at:

Issue type:  Article
Appears in Collections:

Scientific Journal "Socio-Economic Problems and the State", Vol.21, No.2



Journal is indexed by:


Other useful links:
Пошук у EBSCO

Google translate

Ukrainian English French German Polish Russian