scholarly journals Estabilidade Financeira e Estrutura de Mercado: Evidências Internacionais

2012 ◽  
Vol 10 (1) ◽  
pp. 7
Author(s):  
Marcos Soares da Silva ◽  
José Angelo Divino
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Banking System ◽  
Dynamic Panel Data ◽  
The World Bank ◽  
Market Economic ◽  
Bank Regulation And Supervision ◽  
The Stability ◽  
The One ◽  
The International Monetary Fund

Although the economic theory recognizes the ambiguous relationship between market structure and stability of the bank sector, some models, such as the one of competition-fragility by Allen and Gale (2004), suggest that increasing competition leads financial institutions to take more risks. As a result, financial markets that are more concentrated also present higher financial stability. To assess this hypothesis, we estimate a dynamic panel data model for 41 countries in the period from 1987 to 2007. The econometric model included covariates for level of income, characteristics of the financial market, economic environment, and macro prudential regulation. We used the following databases: “A new database on financial development and structure” and “Bank regulation and supervision”, from the World Bank, and “Systemic banking crises: a new database”, from the International Monetary Fund. The results indicate that the greater the market concentration the higher the stability of the banking system.

Basle Committee on Banking Supervision: Basle Core Principles for Effective Banking Supervision

1998 ◽  
Vol 37 (2) ◽  
pp. 405-432 ◽  
Keyword(s):  
World Bank ◽  
International Monetary Fund ◽  
Financial Stability ◽  
Banking System ◽  
Banking Supervision ◽  
Financial Systems ◽  
The World Bank ◽  
The World ◽  
Bank For International Settlements ◽  
The International Monetary Fund

Weaknesses in the banking system of a country, whether developing or developed, can threaten financial stability both within that country and internationally. The need to improve the strength of financial systems hasattracted growing international concern. The Communique issued at the close of the Lyon G-7 Summit in June 1996 called for action in this domain. Several official bodies, including the Basle Committee on Banking Supervision, the Bank for International Settlements, the International Monetary Fund and the World Bank, have recently been examining ways to strengthen financial stability throughout the world.

scholarly journals Justification of the list of indicators financial stability of the banking system

2018 ◽  
Vol 17 (3) ◽  
pp. 1-16
Author(s):  
Nataliia Pohorelenko
Keyword(s):  
Financial Stability ◽  
Financial Risk ◽  
Banking System ◽  
Financial Ratios ◽  
Resource Base ◽  
Synthetic Indicators ◽  
Net Interest Margin ◽  
Hierarchic Structure ◽  
The Stability ◽  
The One

The generalization of scientific approaches to the assessment of the financial stability of the banking system has demonstrated the multivariance of views on structuring and listing of financial stability indicators and has made it possible to distinguish three main ones: on the basis of macroeconomic and macro financial indicators; on the basis of separate indicators; based on synthetic indicators. It is proved that the latter is most effective since the large number and variability of financial ratios used by different authors to assess the level of financial stability of banking systems does not allow for unambiguous results. A hierarchic structure of indicators of the stability of the banking system is proposed, which is characterized by the simultaneous existence of a certain number, not ordered in a heterarchic manner. In accordance with it, the integral index of financial stability of the banking system includes subindices: stability of the NBU, stability of system banks, banks with foreign capital, banks with private capital, financial vulnerability of the banking system. The expediency of accounting for the indicators of financial risk assessment: credit, liquidity risk, interest rate, investment risk, unstable resource base risk, which are characterized by such financial ratios as part of provisions for depreciation of loans in the loan portfolio, is justified in the composition of such a synthetic indicator of the financial stability of the banking system; the norm of instant liquidity; net interest margin; part of the provision for depreciation of securities in the securities portfolio; coefficient of instability of the resource base. Also, indicators for assessing the stability of the central bank were proposed: indicators of the adequacy of reserves; indicators of the effectiveness of monetary policy; indicators of the effectiveness of foreign exchange regulation; indicators of compliance of banking supervision with the main principles of efficiency. This approach will allow taking into account all the structural components of the banking system in the process of assessing financial stability, on the one hand, and in time to identify potential threats to the loss of stability, on the other.

scholarly journals APPROACHES TO THE CALCULATION OF ECONOMIC CAPITAL UKRAINE BANKING SYSTEM

2017 ◽  
pp. 126-136
Author(s):  
Anton SHEVCHUK
Keyword(s):  
Financial Stability ◽  
Negative Impact ◽  
Banking System ◽  
Economic Capital ◽  
Capital Adequacy ◽  
Resource Base ◽  
Rating Agencies ◽  
Banking Institutions ◽  
The Stability ◽  
The One

Introduction. Indicated that it determines the degree of capital adequacy of financial stability of the bank, so there is the element of the resource base of the bank, which should cover the risks arising in its activities. Therefore, proposed on the one hand say that the greater range of operations conducted by the bank, the greater the volume of investments in it, the more losses it may incur and the more he should be the level of capital adequacy to ensure stability in the implementation of the relevant risks. The attention that the low level of capital adequacy of the bank leading to a dangerous increase risks a negative impact on its financial stability. The comparison of approaches to the calculation of economic capital. The purpose of the study is to determine the best approaches for calculating economic capital in the presence of risk in the banking system arising in connection with the stability of the economy and fluctuations in the banking system. Results. In the sense of economic capital calculation and the effectiveness of its many internal and external stakeholders with regard to banking institutions and organizations, such as the management of bank supervisory authorities, rating agencies and shareholders. Even before the transition to the stage of calculating economic capital of most Ukrainian banks to make a number of steps to ensure that the basic requirements for risk management. Conclusion. The regulation of capital adequacy of the bank must comply with two ends, as overstating this value and reducing its value affects the reliability of the bank

scholarly journals Contents and principles of stability of the banking system

2019 ◽  
Vol 27 (1) ◽  
pp. 63-71
Author(s):  
Hadir H. Shubbar ◽  
Andrey V. Guirinsky
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Surveillance Systems ◽  
Banking Supervision ◽  
Basic Principles ◽  
Factors Affecting ◽  
The Stability ◽  
Future Work ◽  
The International Monetary Fund

The main approaches to understanding the essence of “stability of banking system” are conducted in the article. The basic principles are also given, inherent in a stable banking system. Further, the main factors affecting the stability of the banking system are considered. The article determined the components of ensuring the assessment of the bank’s financial stability. The basic principles of effective banking supervision are the actual minimum standard for prudent regulation and supervision of banks and banking systems. Initially issued by the Basel Committee on Banking Supervision in 1997, they are used by countries as a guide to assess the quality of their surveillance systems and to determine future work towards achieving a basic level of rational oversight practices. The core principles are also used by the International Monetary Fund (IMF) and the World Bank in the context of the Financial Sector Assessment Program (FSAP) to assess the effectiveness of banking supervisory systems and country practices.

scholarly journals Determinants of Polish financial stability in 2017-2018

2019 ◽  
Vol 30 (2) ◽  
pp. 5-19
Author(s):  
Kinga Górska ◽  
Karolina Krzemińska
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial System ◽  
National Bank ◽  
The Stability

This article seeks to present the essentials of financial stability and to analyse and evaluate selected determinants of stability Poland’s financial system in the years 2017–2018. The study comprises exemplary ratios or indicators that are used in measuring the stability of a financial system. The proposed analysis is confined to selected groups of stability ratios/indicators that are pertinent to the macroeconomic situation, the situation in financial markets, and the situation of the banking sector. The analysis is based upon the data and statistics provided in the reports of the National Bank of Poland, available by 31st November 2018.

MODELING THE INFLUENCE OF THE STRUCTURE AND QUALITY OF ASSETS ON THE PROFITABILITY OF A COMMERCIAL BANK

2021 ◽  
pp. 10-18
Author(s):  
Alena S. Kudriavtseva ◽  
Olga G. Arkadeva
Keyword(s):  
Economic Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Factors Affecting ◽  
Correlation And Regression Analysis ◽  
The Stability ◽  
Classical Economic ◽  
Sound Management

In modern conditions, the methods of classical economic analysis are not enough to solve the problem of bank stability. This requires the development of methods and tools to analyze the current situation in the bank and to develop sound management decisions aimed at ensuring the stability of the bank. The article notes that the analysis of the influence of the structure and quality of assets on the profitability of commercial banks is an important step for assessing the financial position and reliability of a bank, and a method is proposed for constructing a model of the dependence of bank’s profitability on the factors that determine it. The scientific sources were the works of Russian and foreign researchers in the field of modeling and characteristics of the banking system, financial stability of credit institutions, assessment of the creditworthiness of potential borrowers, system organization and information technology. The article uses the methods of economic analysis, differential calculus and mathematical statistics, as well as the achievements of the main scientific schools dealing with the problems of economic and mathematical modeling and economic analysis of banking. In order to determine the most significant economic factors affecting the profitability of commercial banks, generalization of the theoretical, methodological and applied aspects of studies devoted to the study of the influence of the structure and quality of assets on the profitability of commercial banks was carried out, and a correlation and regression analysis was made. The model presented in the article can be used to predict changes in the profitability of Russian commercial banks and to predict promising directions for growth in profit and profitability of the bank.

Mandatory Financial Stability Assessments Under the Financial Sector Assessment Program - Update

Policy Papers ◽  
2013 ◽  
Vol 2013 (94) ◽  
Author(s):  
Keyword(s):  
World Bank ◽  
Financial Stability ◽  
Emerging Market ◽  
Low Frequency ◽  
Financial Sector ◽  
Executive Board ◽  
Assessment Program ◽  
The World Bank ◽  
The World ◽  
The Stability

In September 2010, the Executive Board made financial stability assessments under the Financial Sector Assessment program (FSAP) a regular and mandatory part of bilateral surveillance under Article IV for jurisdictions with systemically important financial sectors. This decision recognized that although financial sector issues were at the core of the Fund’s surveillance mandate, the FSAP as designed in the late 1990s had severe limitations as a tool. Voluntary participation, the low frequency of assessments, and their very broad coverage (particularly in emerging market and developing countries, where assessments are typically conducted jointly with the World Bank) limited the usefulness of the FSAP for surveillance. Building on the revamp of the FSAP during the 2009 program review that delineated the institutional responsibilities of the Fund and the World Bank and defined the content of the stability assessment under the FSAP, the Executive Board took the next step in 2010 to make these stability assessments mandatory every five years for members with systemically important financial sectors

scholarly journals PROBLEMS OF ENSURING THE FINANCIAL SUSTAINABILITY OF THE BANKING SYSTEM

2021 ◽  
Author(s):  
Olena Tarasova
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
Financial Sustainability ◽  
Loan Portfolio ◽  
Bank Deposits ◽  
High Inflation ◽  
The Stability ◽  
Banking Institution

The article explores the problems of ensuring the financial sustainability of the banking sector, which plays a very important role in the functioning of the financial system of the state. The role of the stability of the banking system in ensuring conditions of economic growth is justified. It is noted that it is the financial stability of each banking institution that is a prerequisite for the stable functioning of the entire banking system. It is emphasized that since the financial stability of the banking system is influenced by a large number of internal and external factors, for the effective functioning of the banking system of the country must be ready for any challenges to the macro and microenvironment. The main problems of the banking system in modern conditions should be considered the reduction of deposits of the population, deterioration of the quality of the loan portfolio, significant devaluation of the hryvnia, high inflation rates, loss-making of a significant number of banking institutions. It was concluded that the banking system of Ukraine feels a significant dependence on the funds of depositors - individuals, and therefore on factors that affect their behavior in the financial market. Trends of formation of deposit base of commercial banks of Ukraine and imbalances in the sphere of attraction of banking resources were analyzed. The growth of bank deposits of the population is slow, negative changes in their structure are observed. The share of deposits of individuals after the 2014 crisis has become significantly more volatile and risky in terms of financial stability. The increase in lending is complicated by the presence of large portfolios of problem loans, as a result of which there are a number of tasks to increase the efficiency of the loan portfolio, which should ensure a compromise of profitability, liquidity and credit risk acceptable to the bank. The priorities of monetary policy and the main tasks are formulated, the solution of which will allow to intensify lending to the real sector of the economy. Theoretical and practical recommendations have been developed to improve bank lending, increase the profitability of the banking system and capitalize Ukrainian banks.

scholarly journals FINANCIAL STABILITY OF A BANK - FACTOR OF STABILITY OF BANKING SYSTEM

2018 ◽  
pp. 5-11
Author(s):  
Andrii Ramskyi ◽  
Inna Budnichenko
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Development Program ◽  
Financial Sustainability ◽  
Internal Factors ◽  
Financial Condition ◽  
Stage Of Development ◽  
Banking Institutions ◽  
The Stability

The article is devoted to the analysis of the financial stability of Ukrainian banks at the present stage of development and the identification of the main factors of influence that are associated with it. The main tendencies of development of the banking system of Ukraine are considered. The present state of the banking system of Ukraine is determined. Financial stability plays a significant role in planning the activities of commercial banks. In general, its indicators reflect the level of riskiness of the functioning of the entity of the banking system. Managing financial sustainability has a significant impact on the functioning of banks. That is why it is necessary to create special control departments in banking institutions. The research of financial stability of banks is based on financial sustainability indicators developed and used by the IMF and the World Bank as the basis for the "Integrated Financial Sector Development Program until 2020". The necessity of applying different methods for evaluating the financial stability of commercial banks has been established in order to identify a wider range of problems related to the efficiency of the functioning of the banking system. The description of  two main groups of factors, under the influence of which the financial stability of banks  undergoes changes, is presented. It was revealed that external factors have a more significant impact on the financial stability of a bank. In particular, the factors of mega environment have become more important when banks enter the international financial space. Internal factors lie mostly in the management plane, and it is just the inefficient management of the bank that leads to the disruption of its stable financial condition. Specific features of management of financial stability and methods of its evaluation are considered. The analysis of economic standards of the banking system of Ukraine is carried out. The measures are proposed to minimize the risks and maintain the stability of banking institutions at the required level for normal functioning in modern conditions. It has been proved that providing, supporting, analyzing and evaluating the financial stability of commercial banks is a driving force in the development of the banking system, and hence the entire Ukrainian economy.

scholarly journals ERROR CORRECTION MODEL ANALYSIS OF THE DETERMINANT OF STABILITY OF FINANCIAL SYSTEM IN INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 82-90
Author(s):  
Muhammad Rismawan Ridha
Keyword(s):  
Error Correction ◽  
Banking System ◽  
Financial System ◽  
Error Correction Model ◽  
Economic Openness ◽  
Correction Model ◽  
The Government ◽  
The Stability ◽  
Banking Credit ◽  
The International Monetary Fund

The current condition of economic openness is both an opportunity and a challenge that must be faced wisely by the government. Liberalization and economic integration will have an impact on financial market liberalization, which is highly vulnerable to create crisis in a banking system. This study aims to analyze the factors that influence the stability of the financial system in Indonesia by using the Error Correction Model (ECM). The variables used in this research is Capital Banking Credit sourced from Statistics Indonesia (BPS) and Exchange Rate, Inflation, and Money Supply sourced from the International Monetary Fund (IMF) between 2010 and 2015. The results of the study show that; 1) ECT coefficient which has negative and significant value explains that the model is valid. 2) Inflation significantly affects the stability of the financial system in Indonesia in the long and short term

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