scholarly journals Combating crime in the banking sector as a method for ensuring its stability (evidence from Ukraine)

2020 ◽  
Vol 15 (1) ◽  
pp. 143-157
Author(s):  
Alyona Klochko ◽  
Oksana Kvasha ◽  
Zoia Zahynei ◽  
Mykola Logvinenko ◽  
Mykola Kurylo
Keyword(s):  
Banking Sector ◽  
Effective Interaction ◽  
Legal Aspect ◽  
Banking System ◽  
System Stability ◽  
Law Enforcement Agencies ◽  
Public Authorities ◽  
Registration Number ◽  
The Stability ◽  
State Registration

An effective system for combating banking crimes can ensure the stability of the Ukrainian banking sector. Developing such a system requires an analysis of public policy institutional instruments to counter threats to the banking system stability. The article proposes the crime counteraction concept for the Ukrainian banking system based on the analysis of scientific articles dealing with the issue, relevant provisions of legal acts and on the study of functions of law enforcement agencies, individual executive bodies, central public authorities, state collegial bodies, territorial NBU departments, Ukrainian banks and their branches, the Deposit Guarantee Fund, international institutions, and bank clients.It has been established that the stability of the Ukrainian banking system can be ensured by effective interaction of all actors in combating crime in the banking business. Overlapping of their functions and some conflict rules negatively affect ensuring the banking system stability by entities engaged in banking crime counteraction. Therefore, an algorithm of cooperation between relevant counteraction entities should be developed and reflected in the Banking and Financial Security Strategy on the legislative level. Optimization of statistical reporting on crime in the Ukrainian banking sector in a more informative format requires data on both individual types of banking crimes and on the persons who commit them. As part of the work of the National Bank of Ukraine’s Public Council, it is necessary to organize regional public councils and ensure cooperation between bank clients and local banking institutions. It is assumed that the development of effective mechanisms for protecting rights and legitimate interests of depositors and creditors, as well as combating criminalization in the banking sector will be the main functions of these regional public councils. The relevant innovations require amendments to the Regulation on the NBU Public Council. AcknowledgmentThe article was prepared as part of a project for young scientists of Ukraine in 2017 (state registration number – 0117 U 006531), Improving the Legislation of Ukraine Regarding the Protection of Banking Activities in the Context of European Integration: Economic and Legal Aspect, by Alyona M. Klochko, Ph.D. (Law), Sumy National Agrarian University, Head of the Chair of International Relations.

scholarly journals Formalization of factors that are affecting stability of Ukraine banking system

2016 ◽  
Vol 6 (4) ◽  
pp. 7-11 ◽  
Author(s):  
Tetiana Vasilyeva ◽  
Larysa Sysoyeva ◽  
Alina Vysochyna
Keyword(s):  
Regression Analysis ◽  
Banking Sector ◽  
Negative Impact ◽  
Banking System ◽  
System Stability ◽  
Real Economy ◽  
Income Ratio ◽  
The Stability ◽  
Key Indicators ◽  
Relevant Factors

Intensification of financial development during last decade causes transformation of banking sector functioning. In particular, among the most significant changes over this period should be noted the next ones: convergence of financial market segments and appearance of cross-sector financial products, an increase of prevailing of financial sector in comparison with real economy and level of their interdependent, an intensification of crisis processes in financial and especially banking sector and a significant increase of the scale of the crisis consequences etc. thus, in such vulnerable conditions it is become very urgent to identify the relevant factors that can influence on the stability of banking sector, because its maintenance seems to be one of the most important preconditions of the stability of the national economy as a whole. Purpose of the article is to analyze key performance indicators of the Ukrainian banking system, clarify its main problems, identify relevant factors of the stability of the Ukrainian banking system and the character of their influence on the dependent variable. Realization of the mentioned above tasks was ensured by regression analysis (OLS regression). Analysis of key indicators that characterize current situation in the Ukrainian banking system found out the existence of numerous endogenous and exogenous problems, which, in turn, cause worsening most of analyzed indicators during 2013-2015. Unfavorable situation in Ukrainian banking system determined the necessity of identification of relevant factors of banking system stability to avoid transmission of financial shocks. According to the results of regression analysis on the stability of banking sector positively influence such factors as increase of interest margin to gross income ratio, reserves to assets ratio, number of branches, ratio of non-performing loans to total loans. Meanwhile, negative impact on stability of banking system has an increase of liquid assets to short term liabilities ratio and cost to income ratio. Empirical results of the research found out that grate damage to the stability of banking system has some parameters of banking activity, that’s why the main purpose of the regulation by the National Bank of Ukraine should be strengthening of macroprudential supervision and intensification of adaptation of Basel II and Basel III requirements.

scholarly journals Political risk and banking sector performance in Nigeria

2021 ◽  
Vol 16 (3) ◽  
pp. 1-12
Author(s):  
Adefemi A. Obalade ◽  
Babatunde Lawrence ◽  
Joseph Olorunfemi Akande
Keyword(s):  
Credit Risk ◽  
Stock Price ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Banking System ◽  
Political Risk ◽  
Political Systems ◽  
Business Outcomes ◽  
Stage System ◽  
The Stability

Political risk is prevalent in Nigeria and tends to influence business outcomes and the stability of the banking system. As a result of this study, it was determined whether political risk matters to the performance of the banking sector in Nigeria. The effect of political risk on different banks’ performance measures, such as return on assets, return on invested capital, credit risk and stock price, were examined in a panel of 12 selected commercial banks for the period 2006–2018. Data was analyzed using a two-stage system of generalized method of moments. The results provided evidence that the effect of political risk on bank performance depends on the performance proxies. Specifically, political risk was found to be negatively related to banks’ returns on invested capital and positively related to deteriorating credit risk. Hence, it can be concluded that political risk induces poor banking system performance in Nigeria. The study provides a critical insight into the management of a country’s political systems in terms of their potential to create unfavorable conditions for banking systems to thrive.

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 Evaluating the Relationship Between The Banking System Stability and The Internal Capital Adequacy Assessment Process: Evidence From The Egyptian Banking Sector

2018 ◽  
Author(s):  
Karim Fahmy
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Research Study ◽  
Banking System ◽  
Capital Adequacy ◽  
Assessment Process ◽  
System Stability ◽  
Capital Management ◽  
Internal Capital ◽  
Adequacy Assessment

In the repercussions of the latest financial crisis that have occurred on the years 2008-2009, to fortify the stability of the banking systems, policy makers, and the Basel Committee on Banking Supervision – BCBS, together with national regulators have built up a few safety measures, and structures to guarantee that banks establishments keep up adequate capital levels through using risk management tools, in specific the Internal Capital Adequacy Assessment Processes (ICAAP). They all have called for thorough evaluations and assessments for the structure and components of risk management frameworks, tools, and practices whether by banks, regulators, analysts and risk management experts consistently, to ascertain the adequacy of the banking systems, policies, arrangements and techniques for overseeing risks, and guaranteeing the sufficiency of holding appropriate capital levels for confronting normal, as well as adverse and unexpected situations or emergencies. The main objectives of this research study is to shed the light on the ICAAP as one of the main keys of risk management programs, a process by which banks can use to ensure that they operate with an appropriate levels of capital, forward looking processes for capital planning covering a broad range of risks across banks, activities beyond simple capital management, and brings together risk and capital management activities in a form that can be used to support business decisions. The research study shall evaluate the significant relationship between the Banking System Stability (dependent variable) and the Internal Capital Adequacy Assessment Process (ICAAP – independent variable) with evidence from the Egyptian Banking Sector.

scholarly journals Risks and stability of the banking system of the Republic of Moldova

2021 ◽  
Author(s):  
Grigore Duhlicher ◽  
Keyword(s):  
Financial Markets ◽  
Financial Crises ◽  
Banking Sector ◽  
Banking System ◽  
Republic Of Moldova ◽  
Banking Systems ◽  
The Republic ◽  
And Performance ◽  
The Stability ◽  
Financial Balance

The banking sector is constantly affected by a multitude of risks, which jeopardize its stability and performance. The multiplication, diversification and continuous intensification of banking risks emphasizes the need to define, identify, analyze and manage these phenomena, this process having a major impact on the stability of national banking systems and global financial balance. Efforts to this end must maintain the stability of financial-banking systems, characterized by a lack of major imbalances, which could lead to systemic financial crises, the inability of financial institutions to conduct financial operations, or the collapse of financial markets.

scholarly journals ВПЛИВ ІНОЗЕМНОГО КАПІТАЛУ НА БАНКІВСЬКУ СИСТЕМУ УКРАЇНИ В УМОВАХ ГЛОБАЛІЗАЦІЇ

2019 ◽  
pp. 66-75
Author(s):  
М. С. Татар ◽  
Ю. А. Нужнова ◽  
К. М. Рябус
Keyword(s):  
Banking Sector ◽  
Foreign Capital ◽  
Negative Impact ◽  
System Development ◽  
Banking System ◽  
Negative Influence ◽  
Foreign Banks ◽  
System Stability ◽  
Practical Significance ◽  
Foreign Banking

Formulation of the problem. In the last five years the number of insolvent banking institutions was reduced, however, the percentage of banks with foreign capital in the total number of banks was increased, which may affect the banking system stability and require a research of the positive and negative effects of foreign banks on Ukraine banking system. The aim of the research is analizing trends of the foreign capital presence in Ukraine banking sector and determination its positive and negative impact on Ukraine banking system. The subject of the research is the activity of foreign banks in Ukraine. The methods of the research: logical and meaningful method, method of comparison, methods of induction and deduction, etc. The hypothesis of the research. Existence of significant influence of foreign capital on Ukraine banking system. The statement of basic materials. The main tendencies of development of Ukrainian banks and place in ratings of state-owned banks and banks of foreign banking groups are analyzed. It has been found that according to different ratings, banks of foreign banking groups occupy the first leading five positions in the rating, while banks with state-owned shares occupy mostly middle positions. The positive and negative influence of the presence of foreign banks in the territory of Ukraine on the banking system of Ukraine is analyzed. The originality and practical significance of the research is determination the positive and negative impact of foreign capital banks on Ukraine banking system. Conclusions and perspectives of further research. Positive and negative influence of presence of foreign capital banks on the Ukraine banking system is analyzed, which is the basis for further research, in which it is planned to quantify the power of influence of individual banks with foreign capital on Ukraine banking system development, to determine the effectiveness of attracting foreign banking capital in Ukraine, to form a mechanism for admission of banks with foreign capital to the domestic banking services market.

scholarly journals The essence of the Bank Guarantee Fund’s activity and related dilemmas in the context of banking system stability

2018 ◽  
Vol 21 (5) ◽  
pp. 121-130
Author(s):  
Iwona Dorota Czechowska
Keyword(s):  
Deposit Insurance ◽  
Banking Sector ◽  
Banking System ◽  
Safety Net ◽  
Economic Transformation ◽  
System Stability ◽  
Main Task ◽  
Difficult Situation ◽  
Guarantee System ◽  
The Usa

The deposit guarantee system in Poland was devised at the time of the economic transformation. Its creation resulted from a difficult situation in the banking sector, and so it was meant to be an antidote to clients’ problems associated with the insolvency of collapsing banks and with adjusting to European community law. The aim of this work is to present the Bank Guarantee Fund—an institution that is part of the financial safety net, whose main task is to protect the interest of depositors and to ensure the banking system’s stability. The paper looks at some aspects of the growing interest in bank deposit insurance schemes and lively discussions on the subject during a crisis in banking markets. In response to the crisis that started in the subprime lending market in the USA and spread to other segments of the financial markets as well as to other countries, the ECOFIN made a decision to increase the existing guarantee limits for individual persons and to speed up the payout of guaranteed funds. The above changes were aimed at strengthening the security of clients and increasing confidence in the banking sector.

Analisis Respon Perbankan atas Dana Repatriasi Program Pengampunan Pajak

2017 ◽  
Vol 2 (3) ◽  
pp. 81-99
Author(s):  
Petter Ibnu Christianto
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Risk Profile ◽  
Third Party ◽  
System Stability ◽  
Tax Base ◽  
Vector Autoregressive ◽  
Tax Amnesty ◽  
The Government

Tax Amnesty Program initiated by the government from 2016 to 2017, showed quite encouraging results. Big asset declaration could increase the future tax base, and asset repatriation is also expected to encourage the growth of the economy in the short term. Incoming repatriation funds, as a result of tax amnesty, are expected to have an impact on the financial system, particularly in the banking sector to add liquidity or third party funds (DPK). The research attempts to show the response of banks in the event of an increase in liquidity in the financial system and how government policies and monetary authorities maintain financial system stability after tax amnesty programs or when liquidity fluctuations in the financial system occur. The dynamic linkage of bank indicators is modeled by the Panel-Vector-Autoregressive (p-VAR) framework. The results of the analysis of the bank's response showed that liquidity changes or liquidity fluctuations in the financial system does not significantly affect to Risk Profile indicators, Profitability indicators, Capital Indicators in the banking system. This conditions shows that the financial system, especially the banking system, has a strong fundamental to reduce the liquidity turmoil in the financial system. Abstrak Program Pengampunan Pajak yang dilaksanakan pemerintah mulai tahun 2016 sampai dengan 2017 menunjukkan hasil yang cukup menggembirakan. Deklarasi aset yang cukup besar dapat meningkatkan basis pajak di masa yang akan datang. Repatriasi aset diharapkan juga mampu mendorong tumbuhnya perekonomian dalam jangka pendek. Dana repatriasi yang masuk sebagai hasil program pengampunan pajak diharapkan memberikan dampak terhadap sistem keuangan, terutama terhadap sektor perbankan sebagai tambahan likuiditas atau dana pihak ketiga (DPK). Kajian ini mencoba menunjukan respon dari perbankan apabila terjadi pertambahan likuiditas dalam sistem keuangan dan bagaimana kebijakan pemerintah dan otoritas moneter dalam mempertahankan stabilitas sistem keuangan paska program pengampunan pajak atau saat terjadi gejolak likuiditas dalam sistem keuangan. Keterkaitan dinamis antar indikator-indikator bank dimodelkan dalam kerangka Panel-Vector-Autoregressive (p-VAR). Analisis terhadap respon perbankan dalam penelitian ini menunjukkan bahwa perubahan likuiditas atau gejolak likuiditas dalam sistem keuangan tidak terlalu berpengaruh terhadap indikator Profil Risiko (Risk Profile), indikator rentabilitas/profitabilitas (Profitability), Indikator permodalan (Capital) dalam sistem perbankan. Hal tersebut menunjukkan bahwa sistem keuangan terutama sistem perbankan mempunyai fundamental yang kuat untuk meredam gejolak likuiditas dalam sistem keuangan.

scholarly journals Stabilność systemu finansowego Unii Europejskiej

Studia BAS ◽  
2021 ◽  
Vol 3 (67) ◽  
pp. 87-116
Author(s):  
Małgorzata Mikita
Keyword(s):  
Financial Stability ◽  
Stock Price ◽  
Banking System ◽  
Financial System ◽  
Price Volatility ◽  
System Stability ◽  
Volatility Index ◽  
Degree Of Stability ◽  
The Stability ◽  
The Eu

The aim of the article is to present activities undertaken at the EU level to ensure financial stability, and to assess the degree of stability of the EU financial system on the basis of selected indicators. The first part of the article introduces the concept of financial system stability and describes its importance in the modern economy and the methods of estimating the stability of the financial system. The second part of the article is devoted to the presentation of activities undertaken by the EU to increase the stability of the financial system, and the assessment of financial stability on the basis of two indicators: the Z-score indicator, used to assess the stability of the banking system, and the Stock Price Volatility index, showing the stability of the capital market.

Sign in / Sign up

Export Citation Format

Share Document