scholarly journals METHODOLOGICAL APPROACH TO FORMATION OF A SYSTEM OF ECONOMIC AND LEGAL SUPPORT OF STABILITY OF THE BANKING SYSTEM

2021 ◽  
Vol 4 (39) ◽  
pp. 29-34
Author(s):  
H. Pohrishchuk ◽  
N. Dobizha ◽  
V. Myronchuk ◽  
I. Lashchyk ◽  
Yu. Kashpruk
Keyword(s):  
Financial Stability ◽  
Positive Impact ◽  
Methodological Approach ◽  
Banking System ◽  
Circulatory System ◽  
Jel Classification ◽  
Main Task ◽  
Structural Elements ◽  
System A ◽  
Banking Institutions

Abstract. The heart of any market economy is its circulatory system. the complex of credit and banking institutions that serve their viability of structures (infrastructural elements), is a full-fledged banking system of the country. Modern dynamic processes of globalization of financial markets due to the acceleration of the free movement of capital, in addition to a positive impact on the development of national financial systems, create conditions for the spread of crisis trends, including contributing to the manifestation of the chain of "infection effect" of banking systems in the international financial space. A system of economic and legal support for the financial stability of the banking system has been developed. The feasibility of creating and achieving the effectiveness of which in modern conditions is due to the need to reboot the domestic banking system to solve existing internal financial problems and transform it in accordance with the European-oriented vector of development of the country’s economy. The existing system provides for the financial stability of the banking system at two levels: at the macro level - the banking system as an object with systemic properties; micro-level - banks as structural elements of the banking system.  The study of the features of the formation of a system of economic and legal support for the financial stability of the banking system. The main task was to optimize the main elements of the system of economic and legal support for the financial stability of the banking system. The main goal of the study is to form a system of economic and legal support for the financial stability of the banking system. A methodology for structuring system elements was applied. Building an information model allows you to structure the elements of the system of economic and legal support for the financial stability of the banking system, see their relationship, highlight the main and secondary ones. Keywords: economic and legal support, stability, financial stability, banking system, banks. JEL Classification: G20, G21, E58  Formulas: 3; fig.: 1; tabl.: 2; bibl.:15.

scholarly journals Improving the efficiency of cash collection operations with the help of modern information technologies

2021 ◽  
pp. 49-57
Author(s):  
Andriy Fedets
Keyword(s):  
Information Technologies ◽  
Banking System ◽  
Main Task ◽  
Legal Norms ◽  
Modern Information Technology ◽  
Banking Institutions ◽  
Modern Information ◽  
Self Service ◽  
Active Implementation ◽  
High Level

Despite the steady spread of non-cash payment technologies, especially now in the pandemic, cash remains the most common method of payment in all countries. The availability of cash in banking institutions, cash centers, ATMs, various self-service devices is provided by the units of collection and transportation of currency values. Collection of funds and transportation of currency values ​​is an integral part of the cash circulation of any banking system, which consists in the collection, delivery and movement of cash by vehicles, from enterprises, institutions, organizations of various forms of ownership to banking institutions and vice versa. The cost of conducting cash collection, supporting cash registers, branches, and loading ATMs constitues a significant part of all operating expenses of banks and collection companies. Due to the high level of risk of attacks on the teams of collectors, the main task is to maintain an appropriate level of security to protect life and health of collectors, which requires significant financial costs. Business owners find a way out in the introduction of new innovative banking products and information technologies. The article examines the processes of cash collection operations by classical and electronic methods as well as modern innovative technologies for cash collection, cash processing, and protection of valuables. The results of scientific research show that the reduction of operating costs for cash collection increases the level of security, and optimization of cash processing is possible only with the active implementation and use of modern information technology and automated software. The article proves the need to improve the mechanism of state regulatory policy in the market of cash collection services in Ukraine, in particular, to amend the regulatory legal acts of the regulator, which is represented by the National Bank of Ukraine, in terms of refining and detailing legal norms that establish and determine the procedure operations on cash collection in electronic form and periodicity of collection units employees training.

scholarly journals Operational control over the financial stability of banking

2020 ◽  
Vol 15 (1) ◽  
pp. 51-58
Author(s):  
Angela Kuznetsova ◽  
Borys Samorodov ◽  
Galyna Azarenkova ◽  
Kateryna Oryekhova ◽  
Maksym Babenko
Keyword(s):  
Credit Risk ◽  
Financial Stability ◽  
Control Charts ◽  
Banking System ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Operational Control ◽  
Regulatory Capital ◽  
Control Value ◽  
Banking Institutions

Maintaining proper financial stability of each banking institution is one of the main tasks facing the banking system of Ukraine. This enables operational control over the financial strength of banking activities.The purpose of the article is to develop recommendations on the operational control of financial stability of banking and to test them using banking institutions in Ukraine as an example.To execute operational control over the financial stability of banking, economic standards of banking regulation are grouped under the “at least” or “not exceeding” principle. To determine their change over time, Shewhart control charts are proposed.The recommendations were tested through the example of the Ukrainian banking institutions (with state, foreign and private capital). It was found out that in 2017–2019, the following three economic standards of banking regulations were not met: regulatory capital adequacy, high credit risk, and average investments; besides, there were two standards at the limit of control value: the ratio of regulatory capital to total assets and the maximum amount of credit risk per counterparty.To improve the financial status of banking institutions, it is recommended to take organizational and financial measures to change the average value of the relevant economic standards for banking regulation to a level that ensures financial stability.

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.

ANTI-CRISIS MANAGEMENT OF THE ENTERPRISE AS A MEANS OF BANKRUPTCY PROTECTION OF THE ENTERPRISE

2019 ◽  
Vol 4 (3) ◽  
pp. 181-187
Author(s):  
Nadiya REZNIK ◽  
Vitalii KOSTYLIANU
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Banking System ◽  
Enterprise Management ◽  
Main Task ◽  
Negative Consequences ◽  
Economic Sectors ◽  
Business Executives ◽  
Financial Condition ◽  
Investment Capital

The functioning of most medium-sized, small and large enterprises in today's realities remains at a low level of professionalism. Many business executives do not pay enough attention to analytical work, do not develop new strategies and do not improve the proposal related to crisis management. Only the enterprise management of the adequate level of qualification can avoid all the negative consequences of the crisis. The main task of enterprises is to comply with the requirements of the enterprise anti-crisis policy, namely the calculation of financial ratios that reflect its financial stability. The coefficients allow to consider the company from different sides, among which the most important in the implementation of anti-crisis management are: the efficiency of current assets using, own and borrowed funds, using of production potential, effective management in the enterprise, the dynamics of production and sales of products, depreciation of fixed assets, using of investment capital. In addition to monitoring indicators, crisis management involves identifying problem areas in the enterprise and developing measures to eliminate them. The final part of the enterprise's anti-crisis policy is the implementation of these measures, which prevents the bankruptcy of the enterprise at the stage of possible threats and problems. Unfortunately, modern entrepreneurs neglect this measure and therefore find themselves in a difficult financial and managerial situation. Another issue of crisis management is the issue of securities, which allows to raise additional funds used by the enterprise as a means of eliminating possible bankruptcy. This process is a means of lending in today's realities that is more effective than loans made through the banking system. In today's market economy, business development is the driving force, so we believe that the topic of crisis management is relevant, because such measures are developing enterprises, which in turn develops the economic sectors and the country's economy. Keywords: crisis management, crisis, bankruptcy, financial instruments, enterprise management, analysis of financial condition.

scholarly journals THEORETICAL СONСEPTUАLІZАTІON OF BАNKІNG RІSK MАNАGEMENT

2021 ◽  
Vol 4 (39) ◽  
pp. 368-375
Author(s):  
O. Kuzmak ◽  
O. Kuzmаk ◽  
V. Bіlyk
Keyword(s):  
Risk Management ◽  
Jel Classification ◽  
Main Task ◽  
Economic Relations ◽  
Relevant Today ◽  
Banking Institutions ◽  
Methodological Problems ◽  
Banking Risk ◽  
Bank Risks ◽  
Theoretical Foundations

Abstract. The article explore the theoretical aspects of banking risk management, its purpose, objects, subjects and advantages are singled out. Effective banking risk management should be considered as the main task of banking institutions in their development. From this research of theoretical foundations of banking  risk management, we consider it а new direction of scientific  research in Ukraine, so the theoretical and methodological developments of these problems are  relevant today. In order to solve these problems, we propose to distinguish between «management of banking risks» and «banking risk management». In the research of the theoretical foundations of banking risk management, the interpretation of these basic concepts was proposed. Consequently, the authors proposed defined «management of banking risks» as a process that includes methods and techniques for identifying, assessing, monitoring, controlling and forecasting bank risks, in order to achieve the main objectives of the banks. And «banking risk management» defined as а set of principles, means and forms of management of the bank’s activities related to risks. For the development of the theory of banking risk management the authors proposed identified and characterized his subjects and objects. It is determined that the object is risks of banks and economic relations at risk, and the subject is the employees of the structural units, which, through the application of knowledge, skills, information and financial resources, participate in the management of banking risks. In addition, the advantages of effective risk management in the activities of banks are determined. The lack of research on the theoretical aspects of banking risk management can lead to deepening of theoretical and methodological problems and may negatively affect in the practical activities of banks. Keywords: management of banking risks, banking risk management, bank, subjects and objects of banking risk management. JEL Classification G21, G28 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 12.

scholarly journals Review of the functions of state banks in the system of ensuring the financial stability of the banking system of Ukraine

2018 ◽  
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Stability ◽  
Banking System ◽  
Data Envelopment ◽  
Dea Model ◽  
Credit Risks ◽  
System A ◽  
Banking Market

Taking into account the extremely important role of state banks for the development of the country (today, they are, in fact, create the banking market), there is a need to re-orient their activity content from generating systemic risk to generating systemic stability. Among the key components of financial stability highlighted by the central banks of the countries and which, using the tools of macro-prudential regulation, ensure the financial stability of the banking system, a special place is given to the ability of the latter to smoothly perform its functions. The effectiveness of such implementation is determined to be the prior condition for such operational continuity. For this purpose, methodical support is proposed for revising the functionality of Ukrainian state banks in terms of their efficiency, determined by the DEA model (Data Envelopment Analysis) with input parameters of customer funds, operating expenses, reserves for credit risks, and output parameters of interest income. The calculations of the performance indicators of state banks by the DEA model were made using DEAOS (Data Envelopment Analysis Online Software). The values of the efficiency indicator were calculated, the ranking of banks was conducted, and the optimal values of input and output parameters for inefficient banks were given. Recommendations were made to improve the efficiency of their activities: balancing the volume of customer funds with the volume of active operations; reducing operating expenses and reserves for credit risks by increasing the quality of loan portfolios. In conclusion, by using the DEA model it is possible not only to determine the measure of the efficiency of state-owned banks in the financial market, but also to make management decisions regarding the adjustment of the main indicators of their activities. This, ultimately, will contribute to raising the level of financial stability not only of state banks, but also of the entire banking system of Ukraine.

scholarly journals Does Bank Competition Enhance or Hinder Financial Stability? Evidence from Indian Banking

2020 ◽  
Vol 9 (s1) ◽  
pp. 75-102
Author(s):  
Bijoy Rakshit ◽  
Samaresh Bardhan
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Positive Impact ◽  
Banking System ◽  
Bank Competition ◽  
Z Score ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
The Impact

AbstractThe primary purpose of this paper is to empirically investigate the impact of bank competition on financial stability in India. We use a dynamic panel model to examine whether an increase in bank competition hindrances financial stability of commercial banks in India over the period 1996 to 2016. Findings reveal that in India, a higher degree of bank competition is positively associated with the prevalence of non-performing loans. Additionally, the positive impact of the Lerner index on Z-score lends support to competition-fragility hypothesis. However, we argue that both the views of competition-stability and competition-fragility can coexist in a single banking system like India.

scholarly journals The overall efficiency of the major banks in the global financial instability

2016 ◽  
Vol 11 (4) ◽  
pp. 61-70 ◽  
Author(s):  
Igor Yushko
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Jel Classification ◽  
Financial Supervision ◽  
Financial Instability ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Global Banking ◽  
Overall Efficiency ◽  
Global Banks

The urgency of the issue is due to the change of major banks functioning conditions in accordance with permanent risks, that global financial instability bears, fiscal and monetary regulation enforcement on national financial markets and from the side of supernational institutions of global financial market regulation. The aim of the paper is the research of overall efficiency of the major banks in the global financial instability. The comparative analysis of overall and individual meanings of bank products and services (earnings) sales values, net profit, assets volume, market value of major banks in researched years gave the possibility to find the tendencies of banks development taking into account global financial instability influence and institutional and regulatory foundations of national governments implementation, Financial stability council (created in Ukraine) and Basel Committee on Banking Supervision. The conditions of major global banks functioning are changing under the influence of financial supervision and institutional and regulatory requirements enforcement to banks activity financial parameters. Other factor that provokes global banks towards activity strategy change is the growth of competition both in bank sphere and non-banking institutions in connection to possibilities provided by financial innovations. The directions of further researches lie in global banking effectiveness finding in a whole from the point of view of not separate banks, or group of banks, but global banking system, which, to our mind, has already been formed. Keywords: global financial instability, effectiveness, major banks, global banking, bank efficiency. JEL Classification: F33, Е58, G21

scholarly journals Pragmatics and problemmatics of the banking sector functioning in Ukraine

2018 ◽  
Vol 2 (1) ◽  
pp. 15-25
Author(s):  
Oksana Redkva
Keyword(s):  
Economic Development ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Economic Downturn ◽  
Bank Capital ◽  
Macroeconomic Factors ◽  
Banking Institutions

Introduction. The permanent occurrence of crisis phenomena in the Ukrainian economy requires the state authorities and the National Bank to search for effective and optimal ways to overcome the economic downturn. Among the important elements in building a system of measures to counteract the recession and stimulate stable economic growth is to ensure a high level of financial stability of the banking system of the country. The banking system has key functions in the mechanism of implementation of the state economic policy to counteract the emergence of negative trends in both the real and financial sectors of the economy. In connection with this, the urgency of the issue of ensuring the proper level of functioning of the banking system is violated. Aim and tasks. The purpose of the research is to deepen the theoretical positions regarding the problematic aspects of the activities of banking institutions and to develop practical recommendations for improving the efficiency of their functioning in Ukraine. Research results. The paper examines the current state of functioning of the banking sector. On the basis of the conducted research, the existence of direct and indirect influence on functioning of the banking system in Ukraine was noted. The existence of the relationship between the main macroeconomic factors and functioning of the banking sector has been proved. By means of mathematical tools, a direct correlation between the growth of gross domestic product and the growth of net bank assets was established. The positive foreign experience of countries with transition economies, which managed to ensure the efficient functioning of the banking system has been considered. The promising measures that will promote the improvement of the banking system and stimulate economic development have been outlined. Conclusions. The analysis of the status of banking institutions indicates the need for changes and effective reforms in the banking system. Realization of any type of reforms carries both potential advantages and the possibility of occurrence of certain risk situations. Therefore, it is expedient and consistently to outline a list of measures that will promote the improvement of the banking system and stimulate economic development, namely: a systematic approach to solving the problem of asset quality; increase of the savings base, which will allow to expand lending; strengthening of the requirements for disclosure of information about the financial status, ownership and management structure of banks; increasing financial literacy of the population; provision of corporate governance of banks on the basis of the best world standards; carrying out constant supervision of the degree of concentration of bank capital in terms of the country and its origin.

scholarly journals ACCOUNTING PROCEDURES FOR REORGANIZATION OF BANKING INSTITUTIONS

2019 ◽  
pp. 122-135
Author(s):  
Nataliya GUDZENKO ◽  
Natalia KOVAL ◽  
Tetiana KORPANIUK
Keyword(s):  
Portfolio Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Driving Forces ◽  
Legal Aspect ◽  
Banking System ◽  
Foreign Banks ◽  
Structural Reorganization ◽  
Banking Institutions

The domestic banking sector should become one of the main driving forces of the structural reorganization of the industrial and agricultural sectors. To implement this objective, it is necessary to develop a powerful banking system based on stable banking institutions. In such conditions, the ability to manage the financial stability of banking institutions, identify signs of instability and bankruptcy in a timely manner, and, if possible, try to neutralize or eliminate them is of great significance. The necessity of implement measures aimed to stabilize the banking system in conditions of the instability of the external environment is substantiated. Peculiarities of the reorganization of banking institutions as one of the effective measures intended to avoid bankruptcy and to stabilize the financial situation are revealed, attention is paid to the need to improve the solvency of domestic banks in the conditions of economic and political instability, as well as the global financial crisis. On the basis of statistical data, the analysis of the reasons for the reorganization and termination of the activity of banking institutions is carried out, the domestic banking market and the world tendencies are compared. According to the analysis of the unsatisfactory quality of banking assets, there have been identified 8 types of inadequate practices for portfolio management of loans and investments in bankrupt foreign banks, including liberalism in providing loans, significant shortcomings in financial reporting, excessive lending, incomplete documentation in the field of taxation. According to the results of the study, the possibilities of reorganization of the banking institution and termination of activity are summarized. In particular, preconditions for reorganization, purpose, and methodological principles of reorganization of commercial banks are highlighted. By its content, the form of reorganization can be unifying, distributive and reorganization can be performed through transformation. Unifying forms include mergers and acquisitions. The procedure of reorganization is complicated by the mechanism for implementation and reflection in accounting and depends on what conditions it will be implemented (what status will be obtained by the future financial and credit institution). In practice, there arises a problem of the complexity of combining the balances on the accounts of the legal predecessor and successor. To solve the problem, it is proposed to add additional records into the accounting registers and new subaccounts and analytical accounts for the accounting of assets and liabilities. The types of bankruptcy are characterized according to the classification criteria and their classification is specified in various aspects (legal, control, accounting) taking into account the requirements of accounting, analysis and preparation of the corresponding reporting. The legal aspect covers all proposed types of bankruptcy, since any type of bankruptcy concerns the rights and interests of legal entities and individuals. However, not all types of bankruptcy are inherent in the control or accounting aspects. The article substantiates the list of accounting objects for various types of reorganization (merger, transformation), since the procedure of reorganization includes transactions for the registration of successor companies); the attention is focused on the problems of displaying in the accounting of claim settlements and the need for their analytical detailing, which expands information capabilities of the register of creditors’ claims, increases the transparency of information for external users and reduces the risk of non-payment. A promising direction is the improvement of organization of management accounting using the system approach, so that accounting support for the process of reorganization should be considered together with the formation of the appropriate methodology, effective management and modern information technology. The accounting policy should ensure the possibility of formation of the accounting information for the forecast of risks and possible bankruptcy of the commercial bank.

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