scholarly journals Implementation of the “bail-in” mechanism in the banking system of Ukraine

2017 ◽  
Vol 12 (3) ◽  
pp. 269-282 ◽  
Author(s):  
Anzhela Kuznetsova ◽  
Galyna Azarenkova ◽  
Ievgeniia Olefir
Keyword(s):  
Financial Stability ◽  
Early Stage ◽  
Comparative Method ◽  
Estimation Method ◽  
Banking System ◽  
The European Union ◽  
Subordinated Debt ◽  
National Bank ◽  
Internal Sources

One of the important tasks of the National Bank of Ukraine is to implement the Directive 2014/59/EU namely to introduce the “bail-in” mechanism, which will enable to resolve insolvency of banks or high probability of its occurrence at the expense of internal sources of banks in order to improve the Ukrainian banking system functioning and adapt it to the requirements and standards of the European Union. The foreign experience of the “bail-in” implementation shows that central banks succeeded in restructuring the balance sheets of banks and significantly reduced the risks of their activities. Thus, the purpose of the study is to substantiate the expediency of the “bail-in” mechanism introduction in banking system of Ukraine. The essence of the “bail-in” mechanism is the involvement of shareholders and lenders of the bank in order to restore its solvency by offsetting shareholders’ equity, subordinated debt, and/or converting/writing off other long-term unsecured and unprovided liabilities in a subordinated debt or shares of the bank. In the process of scientific research, using the comparative method, the method of analogies and methods of logical generalization and scientific abstraction, the structure of the “bail-in” mechanism is determined, which consists of methods (conversion of liabilities into capital, liabilities write-off, capital write-off), provision (normative and legal, financial, organizational and institutional, technical and technological, informational) and levers (incentives, sanctions). Using the expert estimation method, it is proposed to evaluate the effectiveness of the “bail-in” mechanism by comparing the quality of the assets of the bank prior to its implementation and after the completion of the action. The results of the study show that, firstly, the implementation of the “bail-in” mechanism in Ukraine will enable the National Bank of Ukraine to interfere with the activities of banks at an early stage of the problems and to take all necessary measures to restore their solvency. Secondly, the “bail-in” mechanism implementation in Ukraine will increase banks’ resilience to shock, crisis and contribute to long-term financial stability.

STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

2017 ◽  
Author(s):  
Olha Drachevska
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Banking Regulation ◽  
State Regulation ◽  
The State ◽  
Protective Measures ◽  
System Protection ◽  
Banking Activity ◽  
National Bank ◽  
Threatening Situation

The article is devoted to the analysis of scientific approaches to the interpretation of the concepts of "state regulation", "state regulation of banking", "banking regulation" and the measures on which the state regulation of banking is based. An analysis of the scientific literature in various fields allows us to conclude that scholars ambiguously interpret the term "state regulation of banking." Most often, state regulation of banking is seen as a system of measures by which the state through authorized bodies regulates the activities of banks. The domestic legislator considers the concept of "banking regulation" as one of the functions of the National Bank of Ukraine, which is to create a system of norms governing the activities of banks, determine the general principles of banking, banking supervision, liability for violations of banking legislation. The main purpose of banking regulation is security and financial stability of the banking system, protection of the interests of depositors and creditors. The importance of state regulation of banking as an integral part of public policy is emphasized. Effective state regulation of banking activities should ensure stable and uninterrupted operation of the banking system, guarantee the provision of quality services by banks to depositors and borrowers and protect their interests. Preventive and protective measures on which the state regulation of banking activity in Ukraine is based are considered. Preventive measures should be implemented through the approval of mandatory regulations. The application of protective measures should provide protection against the already threatening situation for the bank. Attention is also paid to the forms in which state regulation of banks by the National Bank is carried out. Such forms are administrative regulation and indicative regulation.

scholarly journals Pandemics, Climate and Public Finance

2020 ◽  
Author(s):  
Stefano Battiston ◽  
Monica Billio ◽  
Irene Monasterolo
Keyword(s):  
Financial Stability ◽  
The European Union ◽  
Short Term ◽  
Economic Resilience ◽  
Taxation Policy ◽  
Containment Measures ◽  
Socio Economic Impact ◽  
Business As Usual ◽  
The Eu

The outbreak of COVID-19 and the containment measures are having an unprecedented socio-economic impact in the European Union (EU) and elsewhere. The policies introduced so far in the EU countries promote a ‘business as usual’ economic recovery. This short-term strategy may jeopardise the mid-to-long-term sustainability and financial stability objectives. In contrast, strengthening the socio-economic resilience against future pandemics, as well as other shocks, calls for recovery measures that are fully aligned to the objectives of the EU Green Deal and of the EU corporate taxation policy. Tackling these long-term objectives is not more costly than funding the current short-term measures. Remarkably, it may be the only way to build resilience to future crises.

scholarly journals European Stability Mechanism Sebagai Upaya Uni Eropa Menangani Krisis Finansial Spanyol

2018 ◽  
Vol 5 (1) ◽  
pp. 15
Author(s):  
Nidya Rahmanita ◽  
Renny Miryanti
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Structural Adjustment ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial Assistance ◽  
Bank Capital ◽  
The European Union ◽  
Member States ◽  
European Stability Mechanism

Global Financial Crisis has revealed major weakness in the design and implementation of the existing economic governance framework of the European Union. In addition, the first temporary fiscal backstop is EFSF (The European Financial Stability Facility) as a temporary crisis resolution mechanism by the Euro area Member States. In this case, The EFSF does not provide any further financial assistance, so the task of EFSF being replace by the new mechanism that includes the establishment of a permanent crisis management mechanism as the safeguard against imbalances in individual countries that is ESM (European Stability Mechanism). Spain as one of the Eurozone Member States that fall on financial crisis caused by disproportionate growth in the real estate sector, along with the expansion of credit, on 25 June 2012 made an official request for financial assistance through ESM for its banking system. In accordance with MoU, Spain must conduct a structural adjustment program through identifying individual bank capital needs, recapitalising and restructuring.

scholarly journals EVALUATING THE EFFECTIVENESS OF USING FINANCIAL RESOURCES AIMED AT INNOVATIVE INDUSTRIALIZATION

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 231-237
Author(s):  
А. Nurgaliyeva ◽  
А. Zeinullina ◽  
G. Nurbayeva ◽  
B. Serekbayeva ◽  
G. Bolsynbekova
Keyword(s):  
Structural Changes ◽  
New Technologies ◽  
Raw Materials ◽  
Banking System ◽  
Developed Countries ◽  
Financial Resources ◽  
High Tech ◽  
Innovative Model ◽  
Internal Sources

In the new global reality, the most appropriate model for long-term development of Kazakhstan is the industrial and innovative model. The need to implement industrial and innovative development is dictated by the challenges of the XXI century, the economic imperatives of globalization. Lagging indicators such as labor productivity, which today is only 39 thousand US dollars, while this indicator in the OECD countries is on average more than 2.5 times higher. The share of manufacturing in GDP in 2017 is only 12%, while this figure in developed countries such as China is about more than 35%. In order to enter the top 30 developed countries, further development of the industrial and innovative model is required. It is no accident that in his last two messages, the President focuses on the development of new technologies, new models of digitalization, the need to accelerate the introduction of more complex products, increase the technological level, and increase the share of exports. The development of Kazakhstan's economy requires qualitative and structural changes in the economy and a shift away from its dependence on raw materials, an increase in the share of manufacturing, high-tech industries and the expansion of exports of finished products. The formation of a competitive economy requires huge financial resources that will be directed to innovative industrialization on a long-term basis. The new global reality has led to a reduction in the ability to attract funding. Lack of internal sources of financing, reduction of external sources of financing of the banking system of Kazakhstan, insufficient development of the Kazakhstan stock market significantly limit the ability to meet the needs of the real sector of the economy in financial resources.

scholarly journals Perspectives of Non-Pharmacy Professionals in Long-Term Care Facilities on Pharmacist-Involved Medication Management in South Korea: A Qualitative Study

2019 ◽  
Vol 16 (11) ◽  
pp. 1977 ◽  
Author(s):  
Arim Kwak ◽  
Euni Lee ◽  
Jung Mi Oh ◽  
Eunhee Ji ◽  
Kyungim Kim
Keyword(s):  
South Korea ◽  
Financial Stability ◽  
Long Term Care ◽  
Comparative Method ◽  
Medication Management ◽  
Sampling Strategy ◽  
Snowball Sampling ◽  
Term Care ◽  
Care Facilities

Despite a rapid increase in both the number of long-term care facilities (LTCFs) and their residents in recent years, the concept of pharmacist-involved medication management is relatively new in South Korea. The objective of this study was to identify the perspectives of non-pharmacy professionals regarding the development of pharmacist-involved medication management in LTCFs. Employing a snowball sampling strategy, this study relied on semi-structured, one-on-one, in-depth interviews with twelve non-pharmacy professionals in LTCFs. The inductive thematic analysis and the constant comparative method were employed for the analysis. Participants revealed the need for pharmacist-involved medication management systems in LTCFs at the intrinsic and environmental levels. Through pharmacist-involved medication management, participants desired “medication review/reconciliation” and “pharmaceutical education/counseling”. The barriers to be overcome included “the authorization of pharmacists’ roles”, “the financial stability of LTCFs”, “role awareness among coworkers”, and “the professional development of pharmacists”. In this study, we advanced our understanding of non-pharmacy professionals’ perceptions of pharmacist-involved medication management in LTCFs. The results of this study can be applied in other Asian countries where the development of pharmacist-involved medication management for the institutionalized elderly is relatively new.

scholarly journals MODERN APPROACHES TO ASSESS BANKING RISKS

2021 ◽  
Author(s):  
Olena Zarutska ◽  
Ludmila Novikova ◽  
Tetiana Rudianova ◽  
Anna Kovalenko
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Interest Rate Risk ◽  
Risk Modeling ◽  
Mathematical Methods ◽  
Risk Management Process ◽  
National Bank ◽  
Domestic Banks

The article examines modern approaches to the organization of the risk management process in Ukrainian banks. Requirements for modeling banking risks are growing in modern conditions. Recent financial and economic crises have demonstrated the devastating effects of unforeseen risks. The dynamic development of banking technologies and products requires a detailed analysis of the possible consequences of their implementation. Contingency losses require a probabilistic study. The buffer for the absorption of these losses is the capital of the bank. Losses from anticipated risks include the creation of reserves. The basis of modern approaches to risk modeling is the recommendations of the Basel Committee on Banking Supervision. The National Bank of Ukraine clearly regulates the requirements for the organization of risk management systems, but does not interfere in the construction of models. Banks develop internal policies, procedures and risk management models independently. In recent years, domestic banks have made significant progress in modeling and stress testing of risks. Each bank carries out a comprehensive assessment of at least the following significant types of risks: credit risk, liquidity risk, interest rate risk of the banking book, market risk, operational risk, compliance risk, and other significant types of risks. The issue of validation of risk assessment models by external experts is very relevant. Such specialists may be scientists who conduct research in the field of finance, banking and economic and mathematical methods of modeling complex systems. The interaction of scientists and practitioners has a double effect. Scholars are able to provide useful advice on the features of models and tools for assessing risks, systemic risks and financial stability of the banking sector at the macro level. Specific models of banks lay the foundations for current research topics of teachers and graduates. The authors of the article share the experience of model validation, analyze the current state of the banking system and the risk profile of domestic banks. Bank reporting data are considered in the dynamics and analyzed in terms of specific risks. The obtained conclusions are compared with the Risk Map of banks of the National Bank of Ukraine.

scholarly journals Comparative Analysis of Financial Stability Policy of The National Bank of Serbia and The European Central Bank

2015 ◽  
Vol 53 (2) ◽  
pp. 142-161
Author(s):  
Mirjana Jemović ◽  
Borko Krstić
Keyword(s):  
European Union ◽  
Financial Services ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
System Stability ◽  
The European Union ◽  
National Bank ◽  
The Global Financial Crisis ◽  
The Eu

AbstractThe Republic of Serbia has successfully completed the first part in the European Union integration process, being granted candidate status for membership in the European Union (EU). The stage of accession negotiations is in progress, and it includes the full harmonization with the EU acquis, whereby the analytical review of legislation, the so-called screening is being carried out in 35 chapters. The global financial crisis that affected our country in 2008 has required a timely reaction of the National Bank of Serbia (NBS) in order to preserve the financial system stability, especially the banking sector as its most important segment. As the financial services sector adjusts within chapter 9, the aim of this paper is to assess the level of compliance of national legislation with the EU legislation regarding banking sector. Along with the regulatory initiatives in the field of preserving financial stability in the EU countries, the NBS has paid great attention to the harmonization of its financial stability policy with the financial stability policy of the European System of Central Banks (ESCB).

scholarly journals Financial Stability of Banks and Its Monitoring in Ukraine

2020 ◽  
pp. 69-77
Author(s):  
Svitlana Yehorycheva ◽  
Oksana Vovchenko
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Management ◽  
The World Bank ◽  
Banking Institutions ◽  
National Bank

The concept of financial stability of banks as a complex and multifaceted category, the content of which is constantly enriched, has been developed. Approaches to determining the financial stability and financial stability of banks, in particular, are considered. It is noted that modern operational, functional, institutional, technological features of banks cannot but affect the content of their financial stability and update the mechanisms for its ensuring. Emphasis is placed on the need for early adaptation of banking institutions to objective transformations of the economic environment through the integration of risk-oriented approach and the use of advanced methods of bank management in all its business processes. The level of financial stability of banks in Ukraine is monitored, for which the main volume indicators of their activity and the Bank Z-score indicator calculated by the World Bank are analyzed. The analysis of indicators of banks’ penetration into the economy shows that the development of the banking sector lags behind the needs of the real sector, so its financial stability is relative, although there are trends to strengthen it. The constant increase in the capital base of Ukrainian banks and their compliance with capital adequacy ratios is particularly positive. However, the quality of banks’ loan portfolios is unsatisfactory, which poses a threat to their financial stability, even given the large amounts of formed provisions for loan impairment. The dynamics of financial stability indicators calculated by the National Bank of Ukraine confirms the existence of prerequisites for its long-term provision, despite the difficult environmental conditions. The directions of monitoring of financial stability offered in the article allow diagnosing its deterioration in time to prevent critical consequences for the national economy.

scholarly journals Capital Markets Union: A Vision for the Long Term

2016 ◽  
Vol 2 (1) ◽  
pp. 130-153 ◽  
Author(s):  
Nicolas Véron ◽  
Guntram B. Wolff
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Financial Stability ◽  
Financial Integration ◽  
Bank Lending ◽  
The European Union ◽  
Short Term ◽  
Capital Markets Union ◽  
Improve Access

Abstract Capital Markets Union (CMU) is a welcome economic policy initiative. If well designed and implemented, it can improve access to funding, the allocation of capital, prospects for savers, and financial stability in the European Union. But since financial ecosystems only change slowly, CMU cannot be a short-term cyclical instrument to substitute for subdued bank lending. Shifting financial intermediation towards capital markets will require persistent action on multiple fronts. The policy agenda should aim to enhance both capital markets development and cross-border financial integration, two distinct but mutually reinforcing aims; to increase the transparency, reliability, and comparability of information, a key enabler of trust in financial markets which always involve information asymmetries; and to adequately address financial stability concerns. We propose a staged process to sustain the momentum and make Europe’s CMU fully worthy of its 'union' label.

scholarly journals TRANSPARENCY OF BANKING SUPERVISION AS A NECESSARY CONDITION FOR THE INDEPENDENCE OF THE NATIONAL BANK OF UKRAINE

2020 ◽  
pp. 54-62
Author(s):  
О. Zarutska ◽  
R. Pavlov
Keyword(s):  
Financial Stability ◽  
Business Models ◽  
Banking System ◽  
Capital Adequacy ◽  
Financial Indicators ◽  
Banking Supervision ◽  
Self Organizing Maps ◽  
Increased Risk ◽  
National Bank ◽  
Self Organizing

The article describes modern approaches to banking supervision, focused on the study of business models of banks and their risk profile. Approaches to determining the regime of supervision and measures to influence banks should take into account the specifics of their financial condition and the city in the market of banking services. Supervision tools should be objective and transparent. The introduction of innovative methods for determining business models and adequate supervisory actions is especially relevant in the period of instability of the banking system of Ukraine. Over the past ten years, the number of banks has declined significantly. The reason for the bankruptcy of most banks were realized credit, currency and liquidity risks. The recent crisis has significantly increased the requirements for methods of assessing the financial stability of the banking system. The National Bank of Ukraine is constantly improving the procedures for assessing the quality of active banking operations, regulatory capital adequacy, fixed capital adequacy and determining the required level of capital adequacy ratios in order to promote financial stability. At the same time, the definition of a business model remains subjective. The analysis of banks' business models should take into account the detailed characteristics of their assets, liabilities, income and expenses. The article proposes the method of structural and functional groups of banks on the basis of self-organizing maps Kohonen. The methodology is quite transparent and effective. Groups of banks with the same business models are combined around the extreme values of financial indicators, in the relevant areas of increased risk. This article justifies the need for a broad coverage of indicators that characterize banking risks. The formation of business models of banks should be determined by the characteristics of the banking system in a particular period. Characteristics of the structure of assets, liabilities, income, expenses and other financial indicators of banks reflect the peculiarities of the banking system and specific banks. The methods of neural networks - Kohonen's self-organizing maps - are adapted for processing large data sets. The study recommends that central banks use clear technology for the formation and analysis of business models. Subjective approaches to assessing financial stability and the choice of banking supervision regime violate the principle of central bank independence, as they involve a variety of non-economic factors.

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