The policy of minimizing of fallouts of banking crisis in Ukraine

Ukrainian economy faced sharp decrease in 2008, which was characterized by general deterioration in macroeconomic indicators. Such situation and influence of foreign markets led Ukraine to the financial crisis which started in banking system. Ukrainian banking crisis was accompanied by changes in national legislation. There are 3 ways of minimizing of fall-outs of banking crisis in Ukraine. They are as follows: temporary administration, nationalization and liquidation. Ukrainian anti-crisis steps, which were implemented, were compared with foreign experience. The question is whether these steps were as successful as some of foreign ones or not. Analysis which was made showed imperfection of national legislation, lack of interaction between state regulatory authority and lack of effective long-term strategy.

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Firm’s Finance and Influence of Global Financial Crisis in the Selected European Countries

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201866020583 ◽

2018 ◽

Vol 66 (2) ◽

pp. 583-593

Author(s):

Lucie Szczeponková

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

Small And Medium Enterprises ◽

Banking Crisis ◽

European Countries ◽

Financial Constraint ◽

Systemic Crisis ◽

External Sources ◽

Medium Enterprises

Small and medium enterprises (SME) are key in creation of new jobs and they significantly involved on GDP, innovations and economic growth. These firms very often rely on financial extraneous sources, but acces to these finance is significant business barrier. It means that SME face to financial constraint. This financial constraint is exacerbated by the financial crisis. The goal of this article is to clarify influence of the systemic banking crisis on use own and external sources of finance within small and medium enterprises in the selected european countries. The influence of global financial crisis on firm’s finance in selected european countries is estimated by the method Difference-in-Difference (DiD) in combination with panel data. The results show, that companies in regions hit by the systemic banking crisis had a lower share of long-term investments funded by share issues in 2009 or 2012, compared with companies in regions not affected by this crisis in 2005, 2009 or 2012, and companies in regions affected by the systemic crisis in 2005 and higher share of long-term investments financed from ekvity capital. During the financial crisis the conditions for providing extraneous sources to private entities are diminishing, and especially small and medium-sized businesses are forced to use other sources of funds.

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An Analysis of the Determinants of Systemic Banking Crises in Southeast European Countries

Journal of Central Banking Theory and Practice ◽

10.2478/jcbtp-2018-0017 ◽

2018 ◽

Vol 7 (2) ◽

pp. 165-186

Author(s):

Željka Asanović

Keyword(s):

Banking Crisis ◽

Banking System ◽

Banking Crises ◽

European Countries ◽

Global Trends ◽

Crisis Period ◽

Banking Systems ◽

Logit Regression ◽

Macroeconomic Indicators

Abstract The purpose of this paper is to determine potential indicators of systemic banking crises in five Southeast European countries. Although signal horizon in the literature usually implies a period of 12 months before and 12 months after a crisis outbreak, models in this paper imply a 24-month pre-crisis period. Probability of a banking crisis occurrence is calculated using logit regression. Results have shown that banking system indicators have higher impact on probability of systemic banking crisis occurrence compared to macroeconomic indicators, and that the banking systems of these countries are significantly exposed to global trends.

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The financial crisis in Europe: Impact on satisfaction with life

Scandinavian Journal of Public Health ◽

10.1177/1403494817718692 ◽

2017 ◽

Vol 45 (18_suppl) ◽

pp. 30-40 ◽

Cited By ~ 10

Author(s):

Jocelyne Clench-Aas ◽

Arne Holte

Keyword(s):

Financial Crisis ◽

Satisfaction With Life ◽

Negative Relationship ◽

Sharp Decrease ◽

European Social Survey ◽

2008 Financial Crisis ◽

The 2008 Financial Crisis ◽

In The Beginning ◽

The Impact

Background: The 2008 financial crisis in Europe came abruptly and surprisingly. Many countries also suffered a second recession during the period 2010–2012. We examined the impact of the crisis on life satisfaction (LS) by country and individual socioeconomic level. Method: We used a representative sample from the European Social Survey (2002–2014) with data from 26 countries ( N = 294,407). LS was measured with a single question with 11 response alternatives. Time from start of crisis (either 2008 or 2010-2012) was determined separately for each interview. Data were analyzed by multilevel analysis Results: There was a sharp decrease in LS in the beginning of the crisis in 2008, and another, but not so severe, decline in 2011, each of them of short duration. However, there was also a slight and progressive yearly decrease in LS that continued one to at least 3 years after either financial crisis that was independent of the effect of being unemployed. Associations varied considerably between countries. A negative decline after the financial crisis was especially evident among those in the most educated groups, and in those in the higher occupational levels. Conclusions: The 2008 financial crisis had a double effect on LS: (1) a sharp short-term decrease consistent with the Easterlin paradox; (2) a slighter long-term progressive decrease that was over and above the strong negative relationship with unemployment that lasted several years. The long-term decline in LS after the start of the financial crisis tended to occur especially in the higher socioeconomic groups.

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The Macroeconomic Factors Impact on Liquidity Risk: The Albanian Banking System Case

European Journal of Economics and Business Studies ◽

10.26417/ejes.v7i1.p32-39 ◽

2017 ◽

Vol 7 (1) ◽

pp. 32 ◽

Cited By ~ 2

Author(s):

Doris Madhi

Keyword(s):

Financial Crisis ◽

Risk Evaluation ◽

Banking System ◽

Liquidity Risk ◽

Foreign Markets ◽

Macroeconomic Factors ◽

The Public ◽

Recent Financial Crisis ◽

Evaluation And Monitoring ◽

The Impact

Over the last five years, the Albanian banking system has experienced a deceleration on its activity, considering the recent financial crisis effects. The financial crisis did not propagate direct effects on the Albanian financial system, but indirect effects were visible based on the general slowdown of the foreign markets and public loss of confidence towards the banking system. Also, the foreign remittances decrease and the liquidity shortage of the public played an important role on the capacity to meet the payment obligations (especially on loans). During 2009, the Albanian Central Bank issued a new regulation on liquidity risk evaluation, monitoring and management. The main objective of the regulation was the determination of the minimal evaluation standards of liquidity risk and its effective management by all banks operating on the Albanian territory. The liquidity risk evaluation and monitoring, as suggested also by the literature, does not depend only on internal financial indexes of banks, but it finds its basis also on broader indexes such as macroeconomic indexes. This analysis is effectuated on the impact and importance these factors have on liquidity risk, considering the banking system composed by 13 banks over a period of five years.

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Transformation of the Economic System of Republic of Srpska and its Adaptation to Global Processes

International Letters of Social and Humanistic Sciences ◽

10.18052/www.scipress.com/ilshs.56.152 ◽

2015 ◽

Vol 56 ◽

pp. 152-162

Author(s):

Zoran Mastilo

Keyword(s):

Financial Crisis ◽

Natural Resources ◽

Economic System ◽

Mineral Resources ◽

System Transformation ◽

Negative Effects ◽

Macroeconomic Indicators ◽

The Republic ◽

Economic And Financial Crisis

Republic of Srpska cannot boast of its economic system ever since the onset of the Global Economic and Financial Crisis (2008) to this day. Global Economic and Financial Crisis has produced negative effects onto a small economy like the economy of the Republic of Srpska (RS). In times of such crisis, RS has been faced with high unemployment rate (44%), reduced industrial production, enormous public debt, high deficits and colossal illiquidity. It indicates that the Republic of Srpska is characterised by poor macroeconomic indicators. The fact that RS possesses rich and diverse natural resources, which should be a key factor in its present and future development, did not help the economic system of RS in any way. The industry has been designated as a major segment of development by a long-term strategy of socio-economic development. Such long-term strategy has not given any results in terms of positive rate of economic growth, nor even the slightest improvement of any of the macroeconomic indicators so far. Urgent transformation of the economic system of the Republic of Srpska and its adaptation to the global processes is more than necessary. This can be achieved by offering investors numerous benefits and opportunities for investment under very favourable conditions, particularly in the industries and sectors representing significant natural resources. First of all, it is believed that there is great potential for the development of agriculture; exceptionally favourable conditions for the development of thermal and hydro energy sector; numerous possibilities of providing energy from renewable sources; vast areas covered by forests, mining and mineral resources; great tourist potential, etc. The above listed items are the essential ones, although there are others, which can represent a good basis for development of the economic system. Transformation of the economic system of RS will depend on many factors, primarily, of globalization that has contributed to the huge increase in trade, as well as of modern communication technologies. Globalisation has both positive and negative aspects, but it has certainly brought significant changes. The developed world is the bearer of the globalization process and it made the best use of current global circumstances. The solution is in creation of economic and political integrations, being in a cause-effect relationship with the process of globalization. Economic system of the Republic of Srpska simply has to be included in the such integrations.

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Financial Instability, Uncertainty and Bank Lending Behavior

International Journal of Banking and Finance - Vol. 15, Number 2, 2020 ◽

10.32890/ijbf2012.9.4.8464 ◽

2012 ◽

Cited By ~ 1

Author(s):

Vigneshwara Swamy ◽

S. Sreejesh

Keyword(s):

Financial Crisis ◽

Banking System ◽

Bank Lending ◽

Bank Credit ◽

Investment Activity ◽

The Times ◽

Lending Activity ◽

Lending Institutions ◽

Lending Behavior

“Why do banks squeeze their lending activity” is an oft-repeated question during the times of financial crisis. This study examines an emerging economy’s banking system, and contributes to the evolving body of literature on the topic by providing answers to what causes the sluggish bank credit during times of recession. By employing cointegration technique, the study shows that bank credit has a significant positive relationship with the borrowing activities of debt users of the banks, hence, as the contrary an inverse relationship with investment activity is evident during financial crisis. Accordingly, we suggest that banks could increase their lending by increasing the borrowings rapidly either from the Central Banks or from Government supported long term lending institutions during recessionary periods.

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Stress-testing Russian Banking System: Will Banks Need Government Assistance Again?

Voprosy Ekonomiki ◽

10.32609/0042-8736-2010-4-61-81 ◽

2010 ◽

pp. 61-81 ◽

Cited By ~ 3

Author(s):

O. Solntsev ◽

A. Pestova ◽

M. Mamonov

Keyword(s):

Stress Testing ◽

Banking Sector ◽

Stress Test ◽

Banking System ◽

Government Assistance ◽

Methodological Issues ◽

Loan Portfolio ◽

Macroeconomic Indicators ◽

Remote Stress ◽

Capital Injections

The article analyzes factors that affect growth of the share of non-performing loans in the loan portfolio of Russian banks and proposes approaches for this share forecasting on the basis of dynamics of macroeconomic indicators. It also deals with methodological issues of remote stress-test of lending agencies. Using the results of conducted stress-test of Russian banks the authors assess their perspective capital needs in 2010 and estimate the share of government assistance in capital injections. Furthermore, the authors define the scale of vulnerable banks groups in the Russian banking sector.

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