scholarly journals Market transformations in the banking sector of Ukraine: a view through the prism of "non-economic" policy

2021 ◽  
Vol 2021 (2) ◽  
pp. 74-88
Author(s):  
Drobiazko Anatoliy ◽  
◽  
Keyword(s):  
Economic Policy ◽  
Banking Sector ◽  
Point Of View ◽  
Economic Losses ◽  
Ruling Elite ◽  
Economic Point ◽  
Economies In Transition ◽  
Negative Effect ◽  
The Impact

The author analyzes the processes occurring in the banking sector of Ukraine from the standpoint of "non-economic" policy, the theory of which is currently being discussed in modern economics. According to the author, the impact of such a policy does not allow Ukraine to find the optimal strategy for its development, in particular regarding the regulation in the banking sector. One of the reasons for this is the shortage of public administration, which is generally characteristic of countries with economies in transition. It is proved that the NBU's "settlement" of the banking market after 2014 was extremely unsuccessful from an economic point of view. Quantitative estimates of losses suffered by the Ukrainian economy as a result of the campaign to clean up the banking sector during 2014-2016 are presented and analyzed. Through the prism of the typology of "non-economic" policy, the author considers the processes of demonetization of Ukraine's economy and current problems of the national stock market. It is determined that during the reforms in the banking sector, the adoption by the ruling elite, as well as the by the judiciary, of a series of uncalculated and unconsidered decisions poorly consistent with Ukraine’s specific features led to destructive consequences, which affect the long-term development of the country's economy. In addition to economic losses (more than 10 billion USD) and the planting of a ticking bomb under the future lending, the "bankfall" brought about social damage, which is the loss, by the most active segment of the population, of the confidence in the economic strategy proposed by government officials. In recent years, after the crisis of 2014, no banking institutions have been registered, while the number of banks’ separate branches is rapidly declining, along with the corresponding number of jobs. The author concludes that the current practice of selling liquidation assets of bankrupt banks will have a long-term negative effect, because it benefited bad creditors who bought their overdue debt at a discount through third parties, while the most active part of the population (depositors "200+" and small and medium businesses) suffered losses and lost confidence in banks. It is noted that the main reason for Ukraine to choose the "non-economic" policy is the separation of the management decisions from real socio-economic needs. As a result, the economic decisions initiated in this area not only cause material damage, but also hinder this country’s civilizational advancement.

scholarly journals MARKET TRANSFORMATIONS IN THE BANKING SECTOR OF UKRAINE: A VIEW THROUGH THE PRISM OF "NON-ECONOMIC" POLICY

2021 ◽  
Vol 2021 (2) ◽  
pp. 85-100
Author(s):  
Anatoliy Drobiazko ◽  
◽  
Keyword(s):  
Economic Policy ◽  
Banking Sector ◽  
Point Of View ◽  
Economic Losses ◽  
Ruling Elite ◽  
Economic Point ◽  
Economies In Transition ◽  
Negative Effect ◽  
The Impact

The author analyzes the processes occurring in the banking sector of Ukraine from the standpoint of "non-economic" policy, the theory of which is currently being discussed in modern economics. According to the author, the impact of such a policy does not allow Ukraine to find the optimal strategy for its development, in particular regarding the regulation in the banking sector. One of the reasons for this is the shortage of public administration, which is generally characteristic of countries with economies in transition. It is proved that the NBU's "settlement" of the banking market after 2014 was extremely unsuccessful from an economic point of view. Quantitative estimates of losses suffered by the Ukrainian economy as a result of the campaign to clean up the banking sector during 2014-2016 are presented and analyzed. Through the prism of the typology of "non-economic" policy, the author considers the processes of demonetization of Ukraine's economy and current problems of the national stock market. It is determined that during the reforms in the banking sector, the adoption by the ruling elite, as well as the by the judiciary, of a series of uncalculated and unconsidered decisions poorly consistent with Ukraine’s specific features led to destructive consequences, which affect the long-term development of the country's economy. In addition to economic losses (more than 10 billion USD) and the planting of a ticking bomb under the future lending, the "bankfall" brought about social damage, which is the loss, by the most active segment of the population, of the confidence in the economic strategy proposed by government officials. In recent years, after the crisis of 2014, no banking institutions have been registered, while the number of banks’ separate branches is rapidly declining, along with the corresponding number of jobs. The author concludes that the current practice of selling liquidation assets of bankrupt banks will have a long-term negative effect, because it benefited bad creditors who bought their overdue debt at a discount through third parties, while the most active part of the population (depositors "200+" and small and medium businesses) suffered losses and lost confidence in banks. It is noted that the main reason for Ukraine to choose the "non-economic" policy is the separation of the management decisions from real socio-economic needs. As a result, the economic decisions initiated in this area not only cause material damage, but also hinder this country’s civilizational advancement

scholarly journals WORLD EXPERIENCE: COMMERCIAL BANK CREDIT AND ECONOMIC GROWTH RELATIONSHIP

2020 ◽  
pp. 6-19
Author(s):  
Davit Aslanishvili
Keyword(s):  
Economic Growth ◽  
Large Scale ◽  
Banking Sector ◽  
Point Of View ◽  
Bank Credit ◽  
Main Function ◽  
Economic Point ◽  
Market Factors ◽  
Credit Portfolio ◽  
The Impact

This research focuses on the problem of large scale disproportion of success in the development of the banking sector and mostly unsuccessful development of the real sector of the economy. It should be noted that this disproportion is a subject of consideration in contemporary economic literature and our research is an attempt to broaden the issue and share ideas inside the international scientific circles. The main problem in the research is the impact of the banking sector's credit portfolio and the functioning of credit markets on the economic growth of the country. In this regard, it is very important to identify, study the macroeconomic stabilization and accelerated economic growth of the country and analyse the impact mechanisms of the credit market factors on economic growth. The conclusion that combines many of the research and opinions given in the survey can be as follows: From the economic point of view, the main function of banks is to increase the financing/lending of funds as the core point to increase investments in the economy. Thus, the development of the country in economic terms depends on the increase of investments. At present, it is in the hands of the banking sector whether to lead us to economic immobility or to accelerate the country's economic development through efficient allocation of resources.

scholarly journals The Rising of Fintech - How the Tech Revolution in Financial Services Represents A Paradigm Shift

2021 ◽  
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Social Impact ◽  
Banking Sector ◽  
Point Of View ◽  
Economic Point ◽  
International Interaction ◽  
Long Term Impact ◽  
Globalized World

Finance is a field that shapes human relations not only from a purely economic point of view, but also has a strong influence on social structure, community development, prosperity, political or international interaction, which is even more relevant in a hyper-globalized world. The transformations began with the rising of the internet some decades ago and accelerated due to recent changes, such as increased computing power, the usage of financial apps etc. The scope of this paper is to present a short literature overview about the disruption brought in the finance sector by the recent technology developments. In addition to understand that technology is synonymous with innovation this paper shows examples of innovation drivers (including products and services). Finally, this paper highlights the long-term impact on social and geopolitical grounds with shifting power equilibriums, like the loosing banking monopoly of finances in favour of tech giants GAFA (Google, Amazon, Facebook, Apple) or the recent announcements of global and official cryptocurrencies, e.g. LIBRA by Facebook or CBDC (Central Banks Digital Currencies) from China government. The main findings of this paper are that FinTech has the chance to revolutionize the financial sector because it is more than just payment, new players (BigTech) could enter into the traditional banking sector and rise a new form of competition and FinTech has social impact on financial inclusion and financial literacy. Keywords: Technology, Management, FinTech, Tech Innovation, Financial Technology

Application of Economic Methods to the Сorruption Research

2007 ◽  
pp. 33-44
Author(s):  
N. Epifanova
Keyword(s):  
Social Welfare ◽  
Public Good ◽  
Point Of View ◽  
Total Consumption ◽  
Economic Point ◽  
Social Loss ◽  
The Public ◽  
Economic Methods ◽  
Negative Effect ◽  
The Impact

The paper addresses the analysis of economic approaches to the corruption research. Essence and different kinds of corruption are considered from the economic point of view as well as the impact of corruption on social welfare. The author shows that it is impossible to clarify, whether corruption has a positive or a negative effect, because it may both reduce and increase social welfare. If the corruption causes under-consumption of the public good as compared with the situation of its absence, then there is real social loss in the total consumption. But corruption may also increase the volume of total consumption, therefore increasing social welfare.

World Experience

2021 ◽  
Vol 10 (1) ◽  
pp. 45-53
Author(s):  
Davit (David) Aslanishvili
Keyword(s):  
Large Scale ◽  
Banking Sector ◽  
Point Of View ◽  
Main Function ◽  
Allocation Of Resources ◽  
Economic Literature ◽  
Economic Point ◽  
The Core ◽  
Credit Portfolio ◽  
The Impact

This research studied the problem of the large-scale disproportion of success in the development of the banking sector and mostly unsuccessful development of the real sector of the economy. It should be noted that this disproportion is a subject of consideration in contemporary economic literature and the research is an attempt to broaden the issue and share ideas inside the international scientific circles. The main problem in the research is the impact of the banking sector's credit portfolio and the functioning of credit markets on the economic growth of the country. From the economic point of view, the main function of banks is to increase the financing/lending of funds as the core point to increase investments in the economy. Thus, the development of the country in economic terms depends on the increase of investments. At present, it is in the hands of the banking sector to lead us to the economic immobility or to accelerate country's economic development through efficient allocation of resources.

scholarly journals Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax

2021 ◽  
Author(s):  
Jose Maria Da Rocha ◽  
Javier García-Cutrín ◽  
Maria-Jose Gutiérrez ◽  
Raul Prellezo ◽  
Eduardo Sanchez
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Value Added Tax ◽  
Biological Variables ◽  
A Value ◽  
Long Run ◽  
The Social ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

AbstractIntegrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created.

Enterprise risk management and sustainability of banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Management Practice ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Banking Reform ◽  
Content Type ◽  
Enterprise Risk ◽  
The Impact

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

An evolutionary perspective on the British banking crisis

2018 ◽  
Vol 19 (5) ◽  
pp. 1143-1167 ◽  
Author(s):  
Neill Marshall ◽  
Stuart Dawley ◽  
Andy Pike ◽  
Jane Pollard ◽  
Mike Coombes
Keyword(s):  
Banking Sector ◽  
Banking Crisis ◽  
Evolutionary Perspective ◽  
Regulatory Changes ◽  
Term Evolution ◽  
City Regions ◽  
Spatial Restructuring ◽  
Economic Landscape ◽  
The Impact

Abstract Developing an evolutionary perspective towards the changing anatomy of the banking sector reveals the enduring tensions and contradictions between spatial centralisation and the possibilities for decentralisation before, during and after the British banking crisis. The shift from banking boom to crisis in 2007 is conceptualised as a significant and on-going moment in the long-term evolution of the historical institutional–spatial dominance of London over other city-regions in Britain. The analysis demonstrates the importance of the institutional and geographical legacies of the British national political economy and variegation of capitalism established in the later nineteenth and early twentieth centuries in shaping contemporary geographical outcomes. Regulatory changes combined with financial innovation in the latter years of the twentieth century to create an opportunity for English regional and Scottish banks excluded from previous institutional–spatial centralisation to expand excessively and consequently several failed in the banking crisis. The paper considers the future trajectory of institutional–spatial centralisation in the banking sector amidst the continued spatial restructuring of the banking crisis, involving a re-drawing of organisational boundaries, overlapping institutional and technological changes and unprecedented uncertainty about the impact of Brexit on Britain’s wider political and economic landscape.

scholarly journals The impact of bank-specific and macroeconomic variables on profitability of Islamic rural bank in Indonesia

2019 ◽  
Vol 5 (3) ◽  
Author(s):  
Muhammad Sanusi
Keyword(s):  
Banking Sector ◽  
Time Series Data ◽  
Series Data ◽  
Estimation Model ◽  
Policy Makers ◽  
Vector Error Correction ◽  
Macroeconomic Variables ◽  
Vector Error ◽  
The Impact

This paper investigates the impact of bank-specific and macroeconomic variables on the profitability of Islamic rural bank (BPRS) in Indonesia. Using monthly time series data from January 2010 - December 2018. The estimation model used is a vector error correction model to analyze the long-term and short-term relationships between bank-specific and macroeconomic variables on the profitability of Islamic rural bank. The results showed that CAR and LnTA had a significant positive relationship, while NPF, BOPO and IPI had a negative and significant relationship to the profitability of Islamic rural banks. But FDR and Inflation variables are not significantly related to the profitability of Islamic rural bank. The results leave implications for policy makers, investors and banking sector managers. Based on evidence that bank profitability is more influenced by internal banks (as specific as banks), this research can help Islamic rural banks to help them understand which factors are important to be analyzed to obtain higher profitability.

Restart tourism | build the future

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rita Marques
Keyword(s):  
Value Chain ◽  
Great Influence ◽  
Point Of View ◽  
Political Community ◽  
Data Systems ◽  
Scientific Publications ◽  
Economic Point ◽  
Content Type ◽  
The Future ◽  
The Impact

PurposeThis viewpoint aims to explore the question: How can we restart and monitor the path towards the tourism of the future?Design/methodology/approachThis paper identifies the progress made at scientific, institutional, political and technological levels, and how it is possible to foresee that we will enter in a new era of tourism indicators.FindingsA significant body of literature clearly demonstrates that tourism cannot be viewed simply from an economic point of view as it has a great influence on sociocultural and environmental dimensions. The impact of tourism and how to ensure its long-term success has been invoked for the last few decades, leading to the direct consideration of sustainability indicators in a wide array of scientific publications. However, despite significant advances, the lack of funding, lack of support or interest from the political community, bureaucracies or lack of methodological guidance and of technical skills along the entire value chain pose clear challenges to the development and adoption of wide data systems to support sustainable tourism policies.Originality/valueThe paper sheds light on the Portuguese position regarding the recovery of the tourism sector in the aftermath of the COVID-19 pandemic. It also highlights the commitment to knowledge and monitoring of sustainability in tourism, articulated at international level, and how this is essential in order to make progress and to overcome the challenges facing the sector. At the same time, it demonstrates how fundamental it is to identify solutions to boost the potential of tourism as an economic, social, environmental and cultural phenomenon.

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