Effectiveness of Government Regulation of the Banking Sector: Assessment and Rating of Banks

2020 ◽  
pp. 85-95
Author(s):  
Halyna O. Kryshtal
Keyword(s):  
Government Regulation ◽  
Banking Sector ◽  
Credit Rating ◽  
Analytical Data ◽  
The State ◽  
Economic Sector ◽  
Rating Agencies ◽  
Depth Study ◽  
State Regulator ◽  
Almost All

The article deals with the causes of the negative situation in the banking sector, as the state of the bank depends on the analysis of almost all aspects of banking activity for some time. It is determined that during the banking sector audits, the state regulator uses analytical data on the banking sector's operations with its monetary obligations, compliance with maturities and maturities of assets that operate and terms and amounts of liabilities, namely, dealing with banking sector liquidity. As their financial reliability is important in the banking sector, therefore, bank clients are a socio-economic sector, needing an objective and independent assessment, as reliability directly affects the socio-economic development of the country. The banking sector was analyzed in 2016-2019 and it was found that during this period violations of laws and regulations issued by the state regulator were made in the banking sector. A number of penalties, written warnings and administrative penalties were applied by the state regulator. The method of determining the rating of banks in respect of which penalties were applied by the state regulator is proposed. The rating allows investors and potential clients to understand the situation in the banking market and helps banks identify their weaknesses and correct their work. The application of the proposed economic and mathematical model in the rating of participants in the banking sector can have a positive effect on: improving the quality of management in the banking sector and transparency in the activities of each individual bank; standardization of technologies of rating of the banking sector under the prism of the applied sanctions by the state regulator. Therefore, there is a need for an in-depth study of the techniques used by credit rating agencies in the banking sector and the identification of the main problems in establishing the rating of the banking sector. Key words: banking sector, state regulator, economic sector, efficiency, rating, rating, social sector.

scholarly journals SYNERGY OF THE BANKING AND SOCIO-ECONOMIC SECTORS UNDER THE INFLUENCE OF THE STATE REGULATOR

2019 ◽  
pp. 147-151
Author(s):  
Г.О. Кришталь ◽  
Т.В. Капелюшна
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
The State ◽  
The Other ◽  
Economic Sector ◽  
Social Sector ◽  
Economic Sectors ◽  
Close Relationship ◽  
State Regulator ◽  
The Relationship

The article examines the factors that influence the relationship between the banking and socio-economic sectors, which testifies to their close relationship: the capabilities and potential of one sector increase as the other sector develops. The issues of sector synergy in the system of interaction between the bank and the state regulator, the banking and economic sector and the banking and social sector, both in theoretical, methodological and practical aspects, remain insufficiently developed. Banking entities should give the opportunity to use all opportunities to maximize profits without restriction in a period of economic growth, which will provide enough painless support to businesses in order to retain and develop full-fledged, strong partners in the future. The implementation of the principle should be temporary, and the costs of the banking sector can be offset by economic growth.

Introduction

2010 ◽  
Author(s):  
Mathias Dewatripont ◽  
Jean-Charles Rochet ◽  
Jean Tirole
Keyword(s):  
Large Scale ◽  
Historical Perspective ◽  
Banking Sector ◽  
Credit Rating ◽  
Regulatory System ◽  
Capital Requirements ◽  
Rating Agencies ◽  
Recent Financial Crisis ◽  
Global World

This introductory chapter begins by briefly setting out the book's purpose, which is to offer a perspective on what happened during the recent financial crisis and especially on the lessons to be learned in order to avoid a repetition of this large-scale meltdown of financial markets, industrial recession, and public deficits. It then provides a historical perspective on the regulation of the banking sector, followed by discussions of the challenges facing prudential regulation and the development of an adaptive regulatory system in a global world. It argues that the previous trend toward decreasing capital requirements and increasing delegation of oversight to banks and credit-rating agencies clearly requires a correction, namely a strengthening of regulation. In the recent crisis, the pendulum can be expected to swing in this direction.

State and tendencies of development of the banking system in the context of structural reform of the national economy of Ukraine

2020 ◽  
Vol 23 (12) ◽  
pp. 84-98
Author(s):  
Marta Barna ◽  
Nadiya Ruschyshyn
Keyword(s):  
National Economy ◽  
Government Regulation ◽  
Structural Changes ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
The State ◽  
Structural Reform ◽  
Bank Capital ◽  
Stage Of Development

The relevance of the study lies in the fact that the fulfilment of the potential of the banking system is capable of providing positive structural changes in the economy of Ukraine. The purpose of the study is to analyse the state and trends of the banking system of Ukraine in the focus of its impact on the structural reform of the national economy. The study used methods of statistical analysis (to analyse the state and dynamics of the banking system) and the analogue method (to identify the extent of the development of the banking system on structural changes in the economy). It was substantiated that the effective functioning of the banking system is key to successful economic development of the national economy, in particular its reform. It is proved that a mechanism of redistribution of financial resources and money acts through the banking system; therefore, they are mobilised and involved in economic circulation in those sectors of the economy that need it most. The state and trends of development of the banking system as preconditions of fulfilment of its potential in structural reform of national economy are generalised. As a result of the analysis of the state and trends of the banking system, both their positive and negative features were identified. It is proved that in Ukraine, at the present stage of development of the national economy, the banking system has been cleared of low-liquid and conditionally fictitious banking structures, the volumes of assets, in particular highly liquid ones, are growing, and the loan portfolio of banks is improving, their financial results, liquidity and solvency, resistance to currency shocks, bank lending to the economy increase. The study also demonstrated that the country's banking system is described by a number of systemic shortcomings, especially the high level of concentration of bank capital and deposits in the largest banks, as well as state banks in a number of segments of the banking sector by number of departments, ATMs, terminals, active payment cards. There is a trend to weaken the penetration of the banking sector into the economy, especially in terms of affordable lending to individuals and strategic sectors of the economy. The practical value of the study lies in the fact that based on the identified shortcomings of the banking system and its impact on structural reforms, strategic lines of work for improving government regulation in this area have been identified

South Africa's parastatals face growing turmoil

2017 ◽  
Keyword(s):  
South African ◽  
Credit Rating ◽  
Partial Solution ◽  
The State ◽  
Power Utility ◽  
Content Type ◽  
Rating Agencies ◽  
Additional State ◽  
The Government ◽  
State Financing

Significance This comes amid reports that the state-owned airline will shortly receive a 10-billion-rand (760-million-dollar) bailout from the government, with almost 7 billion rand in debts due to lenders by September 30. The performance of South Africa's state-owned enterprises (SOEs) has featured prominently in rating agencies' downgrade assessments; Moody's cut embattled power utility Eskom's credit rating in June. Impacts The dismissal of SOE officials implicated in Gupta-related corruption allegations will prove only a partial solution to institutional rot. Dampened growth of between 0.5-1.0% this year could be further worsened by additional state financing of SOEs. The South African Reserve Bank's recent mandate court victory will only temporarily allay concerns over its institutional independence.

scholarly journals Current approaches to the analysis of the borrowers’ creditworthiness: Ukrainian and World experience

2019 ◽  
Vol 3 (1) ◽  
pp. 48-55
Author(s):  
Inna Khomenko ◽  
Iryna Sadchykova ◽  
Yuliia Krasnianska
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Credit Ratings ◽  
Banking System ◽  
Financial Economic ◽  
The State ◽  
General Idea ◽  
Leading Role ◽  
Almost All

Introduction. Non-repayment of loans by borrowers not only jeopardizes the profitability of banking structures, but also the ability to calculate them under liabilities - deposit and borrowed funds. This situation is dangerous for the entire banking sector of the country, as it raises a number of acute problems: imbalance of loan and deposit portfolio by volumes and terms; distrust of the population to commercial banks, financial destabilization in the state as a whole, and others like that. Aim and tasks. The main purpose of this work is to study modern domestic and foreign approaches to assessing the creditworthiness of borrowers. Results. Based on the analysis of the definitions it is expedient to use the following interpretation of the term "creditworthiness": the financial, economic and legal capacity of the borrower to obtain a loan and return it to the commercial bank in accordance with the terms and conditions of the agreement. At the initial stages of the methodologies developing for the analysis of borrowers' lending, the leading role was played by the coefficient method, which by its nature is considered the simplest and is currently used as an express evaluation and preceded by other research. Currently, almost all commercial banks use a rating approach to assess the borrower's creditworthiness. Such methods also include calculation of coefficients, but contain a predictive component. The rating approach is valuable, because it requires a constant collection of updated information. Often, banks when building credit ratings use the methods of the relevant agencies. It is now believed that the formation of credit ratings allows you to get the most general idea of the borrower's creditworthiness (at the level of the commercial bank) and about the quality of the loan portfolio (at the level of the banking system of the state). Moreover, when assessing the creditworthiness of borrowers – individuals, the rating approach is most often used. Conclusions. The conducted studies indicate that improving approaches to assessing the creditworthiness of borrowers by commercial banks is particularly relevant for Ukraine. It is important to carry out measures (including administrative) in order to increase the reliability of the input information of borrowers, training of specialized specialists – experts, assessment of qualitative data on the debtor, formation of constantly updated statistical databases, adjustment of methodological developments taking into consideration the variability of the economic situation in Ukraine, ensuring transparency of the analysis, etc.

scholarly journals MEANING OF BANK SECRETS AFTER THE ENACMENT OF LAW NUMBER 9 OF 2017 ON STIPULATION OF GOVERNMENT REGULATION IN LIEU OF LAW NO. 1 OF 2017 ON ACCESS TO FINANCIAL INFORMATION FOR THE INTERESTS TAXATION INTO LAW

2018 ◽  
Vol 3 (1) ◽  
pp. 38
Author(s):  
Jamilatus Sholihah ◽  
Dyah Ochtorina Susanti
Keyword(s):  
Economic Development ◽  
Government Regulation ◽  
Banking Sector ◽  
The State ◽  
Financial Information ◽  
Exchange Of Information ◽  
National Economic ◽  
National Economic Development ◽  
The Law ◽  
The Government

The national economic development in Indonesia is inseparable from the banking role. The existence of the stipulation of Government Regulation in Lieu of Law (PERPU) Number 1 of 2017 on Access to Financial Information for Tax Purposes will certainly affect the regulation of the banking sector in particular related to bank secrets. The establishment of the Perpu appears to have attracted the attention of the government to immediately pass it into law. It is proven which on 23 August 2017 President Joko Widodo has authorized the Perpu to become a law through Law Number 9 of 2017 on Stipulation of Government Regulation in Lieu of Law (PERPPU) Number 1 of 2017 on Access to Financial Information for Tax Purposes into the Law -What. The policy is a form of Indonesia's commitment to participate in the automatic exchange of information globally for tax purposes. The automatic opening of bank secrets for tax purposes will certainly affect the previous banking arrangements, especially those related to bank secrets. Therefore, in order to avoid overlapping arrangements, the state of Indonesia needs to harmonize all regulations relating to bank secrets and the opening of bank secrets for tax purposes.

СОСТОЯНИЕ МЯСНОГО СКОТОВОДСТВА В РОССИЙСКОЙ ФЕДЕРАЦИИ: реалии и перспективы

2020 ◽  
Author(s):  
I.M. DUNIN ◽  
S.E. TYAPUGIN ◽  
R.K. MESHCHEROV ◽  
V.P. HODYKOV ◽  
V.K. ADZHIBEKOV ◽  
...  
Keyword(s):  
Beef Cattle ◽  
Russian Federation ◽  
The State ◽  
Comprehensive Assessment ◽  
Sales Volume ◽  
Cattle Breeding ◽  
The Russian Federation ◽  
Almost All ◽  
Further Development

Рассмотрены состояние и перспективы развития мясного скотоводства в Российской Федерации. Проведен мониторинг численности поголовья, породного состава и продуктивности мясного крупного рогатого скота во всех категориях хозяйств, изучены масштабы и объемы бонитировки скота за 20102018 годы. По данным Минсельхоза России, в 2018 году поголовье крупного рогатого скота в стране составило более 18 млн голов, в том числе численность животных специализированных мясных пород во всех категориях хозяйств достигла 2,26 млн голов. Комплексная оценка 711,16 тыс. голов, или 34,1 от общей численности мясного скота, в том числе 389,8 тыс. коров, принадлежащих к 15 породам и типам, разводимым в 57 регионах Российской Федерации показала, что наибольшее подконтрольное поголовье имеют абердин ангусская порода (417545 гол.), калмыцкая (137262 гол.), герефордская (87278 гол.) и казахская белоголовая породы (52563 гол.). Все подконтрольное поголовье животных является чистопородным и IV поколения, в том числе 99,7 быков-производителей и 99,3 коров. Анализ живой массы пробонитированного поголовья выявил тенденцию к ее повышению у коров всех возрастов в среднем на 54 кг, быков производителей на 39 кг, или на 16,7 и 5,2 за последние 9 лет, соответственно. Живая масса коров по итогам 2018 года в среднем составила 546 кг, быков-производителей 791 кг. По состоянию на 1.01.2019 года, племенная база мясного скотоводства страны представлена 270 племенными стадами, в том числе 46 племенными заводами и 224 племенными репродукторами. В 2018 году в различные категории хозяйств из племенных предприятий было продано 35517 голов племенного молодняка, в том числе 6388 ремонтных бычка с классами элита и элита-рекорд (85,3). В 2018 году было продано племенного молодняка в расчете на 100 коров галловейской породы 33,0 головы, казахской белоголовой 29,1 герефордской 28,0 калмыцкой 22,2 лимузинской 15,5 абердин ангусской 8,8 русской комолой 8,2 и симментальской мясной 4,7 голов. На основании мониторинга состояния мясного скотоводства страны за 20102018 годы были намечены перспективы дальнейшего развития.The article considers the state and prospects of development of beef cattle breeding in the Russian Federation. The number of livestock, breed composition and productivity of beef cattle in all categories of farms was monitored, the scale and volumes of bonding of cattle for the studied 9-year period (20102018) were studied. According to the Ministry of Agriculture of Russia, in 2018 the number of cattle in the country amounted to more than 18 million heads, including the number of cattle of specialized meat breeds in all categories of farms reached 2.26 million heads. A comprehensive assessment of the number of livestock in the amount of 711.16 thousand animals or 34.1 of the total number of beef cattle, including: cows 389.8 thousand heads belonging to 15 breeds and types bred in 57 regions of the Russian Federation, showed that the largest controlled livestock are: Aberdeen Angus breed 417545 animals, Kalmyk 1372726 animals, Hereford 87278 animals and Kazakh white-headed breed 52563 animals. Almost all of the controlled livestock of animals is purebred and IV generation, including: respectively 99.7 of bulls producers and 99.3 of cows. The analysis of live mass of a livestock revealed a tendency to its increase at cows of all age on average on 54 kg, bulls on 39 kgor for 16.7 and 5.2 for the last 9 years respectively. The live mass of cows following the results of 2018 averaged 546 kg, bulls 791 kg. As of January 1, 2019, the breeding base of beef cattle breeding in the country is represented by 270 breeding herds, including: 46 breeding plants and 224 breeding reproducers. In 2018, 35,517 heads of pedigree young animals were sold to various categories of farms from pedigree enterprises, including 6,388 repair bulls with elite classes and an elite record record for appraisal (85.3). An analysis of the sales volume of pedigree young animals in the context of farmed meat breeds showed that in 2018 pedigree young animals per 100 cows were sold in the country: Galloveian breed 33.0 goals, Kazakh white-headed 29.1 goals, Hereford 28, 0 goals., Kalmyk 22.2 goals., Limousin 15.5 goals., Aberdeen Angus 8.8 goals, Russian kolola 8.2 and Simmental meat 4.7 goals. Based on the monitoring of the state of beef cattle breeding in the country for the study period (20102018), prospects for further development were outlined.

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