THE IMPACT OF OWNERSHIP STRUCTURE ON THE EFFICIENCY OF HUMAN CAPITAL UTILIZATION IN UKRAINIAN BANKS

Abstract

The article explores the impact of bank ownership structure on the efficiency of human capital utilization in the Ukrainian banking sector. Particular attention is paid to the comparative analysis of three categories of banks: state-owned banks, private banks, and PrivatBank as a unique case due to its specific status – a formerly private bank that is now state-owned but retains elements of commercial governance. In a context where more than half of the banking system’s assets are concentrated in institutions with state participation, the need arises to assess how effectively human capital is used in such banks compared to private institutions operating under competitive market conditions and enjoying greater autonomy in human resource decisions. The study applies a comprehensive methodology combining structural-analytical, comparative, and graphical approaches. Data sources include banks’ financial statements, statistics from the National Bank of Ukraine, the Clarity Project platform (to collect data on the number of employees), and industry-specific analytical reports. The research focuses on the dynamics of three key indicators: Staff Cost to Income Ratio (StaffCIR), the share of personnel expenses in total bank expenditures, and Revenue per Employee (RPE). The results show that private banks exhibit greater flexibility in managing personnel expenses, which enables them to adapt more effectively to external shocks (such as the COVID-19 crisis and the ongoing war) and align with digital transformation trends. These banks tend to reduce the share of personnel costs while increasing employee productivity, reflecting effective integration of new technologies. In contrast, state-owned banks demonstrate more inertial behavior and delayed responses to change, with a tendency toward increased personnel expenses. Improvements in StaffCIR for state-owned banks are often due to other factors – such as income from operations with government securities – rather than improved internal efficiency. PrivatBank consistently demonstrates the best performance indicators, which can be attributed to retained features of commercial governance and a highly automated retail business model. Thus, ownership structure is identified as a key factor influencing flexibility and effectiveness in human capital management. These findings are critically important for reforming Ukraine’s state-owned banking sector. The results may inform the development of HR strategies and human capital management policies based on ownership type, and serve as a foundation for further research on efficiency in the context of digital transformation of the banking industry.