scholarly journals Organizational and financial mechanism for ensuring financial and economic security of the banking-system

2021 ◽  
Vol 2021 (2) ◽  
pp. 248-255
Author(s):  
Natalia Riazanova ◽  
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
Mortgage Lending ◽  
Economic Security ◽  
Bank Loans ◽  
Resource Base ◽  
Banking Secrecy ◽  
Financial Mechanism

an organizational and financial mechanism for ensuring the financial and economic security of a commercial bank is proposed, which, in real time and in situations that cannot be controlled using traditional methods, will minimize potential risks and change the internal institutional environment, positively affecting the financial and economic security of the country's banking system. It is shown that economic growth as a factor of national security is supported by the effective functioning of the banking system and the priority of long-term bank loans provided in the form of investments, which makes it possible to determine the relationship between the growth of the country's economy and the level of financial and economic security of the banking system. The main approaches to ensuring the financial and economic security of the banking system are considered, which include the structure of the primary interests of a commercial bank and indicators of the level of financial and economic security of the banking sector of Ukraine in order to ensure economic stabilization and strengthen the economic potential of the bank. It was noted that an adequate and fundamental marketing strategy will help to promote the growth of the bank's profitability, attract additional customers, form a resource base and reduce risk in banking. Mortgage lending is considered as the most effective tool for attracting funds from the population to the investment sector and meeting their needs for housing. A distinctive feature of the presented organizational and financial mechanism is the use of strategic management methods to form economic resources, improve the image and level of security of information systems, organize effective management of the bank's personnel, which will create conditions for ensuring the proper level of protection against negative factors and threats and increasing the competitiveness of the bank due to increasing the efficiency of the provision of banking services, preserving banking secrecy and the client base, creating new banking products

scholarly journals Reserve assets as sources of replenishing resource base of banking sector and improving its stability

2019 ◽  
Vol 2019 (4) ◽  
pp. 130-136
Author(s):  
Haidar Diphil Shubbar ◽  
Andrey Vladimirovich Girinsky
Keyword(s):  
Central Bank ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Foreign Currency ◽  
Banking System ◽  
Resource Base ◽  
Reserve Requirement ◽  
Reserve Requirements

The paper focuses on the importance of using reserve assets in order to increase the bank financial stability and the banking system as a whole. The essential requirements for reserving commercial banks have been presented. The methods of regulating the required reserves have been studied. The specific features of applying the required reserves in banking activities (reserve requirements and liquidity, monetary policy, reserve requirements as a monetary tool, reserve requirements as a fiscal tool) have been revealed. The schedule of averaging periods of required reserves for 2019 is being considered. The general principles which credit organizations are guided by when creating reserves are the following: obligatory availability of reserves for all credit organizations throughout their existence; forming reserves in relation to liabilities to legal entities and individuals; possibility of removing from the list obligations for which reserves have been created. It has been mentioned that the main objectives of the reserve requirement system are to provide banks with sufficient liquidity and to regulate the money supply. Particular attention is paid to the Central Bank as a reserve requirements regulator. In accordance with the changes of the Central Bank of July 1, 2019, the established standards on reserve requirements for deposits in national currency are set at 4%, in foreign currency at 14%. Manipulating the required reserve rate will provide the Central Bank with the opportunity to adjust the liquidity and solvency both of an individual bank and the entire banking system. The method of averaging required reserves includes the possibility for a commercial bank not to transfer reserves to the Central Bank based on a certain sum of money. The averaging coefficient is set at 0.25 to the standard volume of required reserves

scholarly journals Bank Competition, Efficiency, and Stability in Macau

2019 ◽  
Vol 8 (4) ◽  
pp. 157
Author(s):  
Harry Xia ◽  
Kevin Lei ◽  
Jiaochen Liang
Keyword(s):  
Economies Of Scale ◽  
Banking Sector ◽  
Banking System ◽  
Bank Loans ◽  
Bank Competition ◽  
Income Volatility ◽  
Bank Efficiency ◽  
Insolvency Risk ◽  
Relationship Of ◽  
The Relationship

Macau has the uppermost population density and the fourth-highest GDP per capita in the world. Macau’s banking system is regarded as one of the most important indicators of Macau’s macroeconomic growth and stability during its transformation into a wealthy and modern metropolis. In this study, we use a sample of 26 banks to explore the relationship of bank competition, efficiency and stability in Macau from its return to China in 1999 to 2016. Our results demonstrate that bank competition does cause efficiency in Macau throughout the study period. We also find indications of a positive but not significant connection between bank market power and bank fragility including income volatility and insolvency risk. Moreover, this study finds no evidence that the size of operations proxied by total bank loans and total assets would impact bank efficiency, indicating that economies of scale or bank market share don’t necessarily bring about efficiency in Macau. Our evidence contributes to the literature by being the first to thoroughly examine the relation of bank competition, efficiency and stability in Macau. The findings provide meaningful implications to the practitioners and policymakers to make sound decisions accordingly, especially to closely monitor and maintain a proper level of competition in Macau’s banking sector.

scholarly journals РЕГУЛЮВАННЯ ДІЯЛЬНОСТІ БАНКІВСЬКОГО СЕКТОРА У КОНТЕКСТІ ЗАБЕЗПЕЧЕННЯ ЙОГО ЕКОНОМІЧНОЇ БЕЗПЕКИ

2020 ◽  
pp. 91-98
Author(s):  
Плукар Л.А.
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Regulation ◽  
Economic Security ◽  
State Regulation ◽  
Crisis Prevention ◽  
Regulation And Supervision ◽  
Systemic Risks ◽  
National Banking System

The article substantiates the need to regulate the banking sector to ensure economic security of its operation. The main tasks of state regulation and supervision of the banking sector have been identified. The types of existing models of the institutional structure of the system of banking regulation and distribution of powers between prudential supervisors are revealed. Requirements for the development of a model of regulatory policy in the banking sector of Ukraine have been formed. The necessity of creating early crisis prevention systems (macroeconomic, based on warning indicators), monitoring of systemic financial institutions, application of macroprudential analysis with regular publication of a strategic document - the Financial Stability Report. The foreign experience of macroprudential regulation and supervision with the help of established specialized divisions of central banks on financial stability and security is reflected. The creation of a separate unit of financial stability and security in Ukraine was initiated, reporting directly to the Chairman of the NBU. The scheme of correlation of subjects of management and tools of maintenance of economic safety of national banking system with separation of subjects of management of economic safety of banking sector, tools of maintenance of economic safety of banking sector at the international and national levels of banking supervision is developed. The implementation of the principles of the Basel Accords in the activity of the banking system of Ukraine is determined as a determining factor in strengthening its financial stability and economic security. The issue of trust in the banking system is one of the main criteria for success, efficiency and security of the banking sector of the economy of each state. The need for monitoring and management of systemic risks has been proved.

scholarly journals MECHANISMS OF STATE REGULATION OF ANTI-CRISIS MANAGEMENT OF ECONOMIC SECURITY OF BANKING INSTITUTIONS OF UKRAINE

10.31732/ms ◽  
2020 ◽  
Author(s):  
Yana Koval
Keyword(s):  
Crisis Management ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Economic Security ◽  
State Regulation ◽  
International Standards ◽  
Wide Range ◽  
Banking Institutions ◽  
The Global Financial Crisis

An important condition for sustainable economic growth of the country is the reliability and predictability of the banking sector of the economy. The global financial crisis, which has also affected Ukraine, indicates the inconsistency of domestic monetary policy with the requirements of the economic environment. Bringing in line with international standards of banking institutions revealed internal and external risks and threats that negatively affected the functioning of the entire banking system and led to a decrease in the number of Ukrainian banks from 180 at the beginning of 2014 to 77 at the beginning of 2019. Negative changes which took place in the banking system of Ukraine reduced the overall level of its economic security and necessitated the development of an effective mechanism for state regulation of anti-crisis management of economic security of banking institutions in Ukraine. The monograph is devoted to solving a scientific problem related to the development of a mechanism for state regulation of anti-crisis management of economic security of banking institutions of Ukraine on the basis of the development of conceptual, methodological and applied components. In the course of the work the theoretical bases of realization of the mechanism of state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are investigated. Diagnosis of the current state of state regulation by anti-crisis management of economic security of banking institutions. The directions of improvement of the mechanism of the state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are developed. The monograph is designed for a wide range of scientists, managers, specialists in public administration and economic security, teachers, graduate students and students of higher education institutions studying the mechanisms of state regulation of crisis management of economic security of banking institutions in Ukraine.

scholarly journals Analysis of the stability factors of Ukrainian banks during the 2014–2017 systemic crisis using the Kohonen self-organizing neural networks

2019 ◽  
Vol 14 (3) ◽  
pp. 86-98 ◽  
Author(s):  
Oleksii Mints ◽  
Viktoriya Marhasova ◽  
Hanna Hlukha ◽  
Roman Kurok ◽  
Tetiana Kolodizieva
Keyword(s):  
Neural Networks ◽  
Financial Stability ◽  
Banking System ◽  
Bank Loans ◽  
Resource Base ◽  
Systemic Crisis ◽  
The Stability ◽  
Bankruptcy Rate ◽  
Legal Entities ◽  
Self Organizing

The article proposes an approach to analyzing reliability factors of commercial banks during the 2014–2017 systemic crisis in the Ukrainian banking system, using the Kohonen self-organizing neural networks and maps. As a result of an experimental study, data were obtained on financial factors affecting the stability of a commercial bank in a crisis period. It has been concluded that during the banking crisis in Ukraine in 2014–2017, the resource base of a bank was the main factor of this bank stability. The most preferred sources of resources were funds from other banks (bankruptcy rate of 5.7%) and legal entities (bankruptcy rate of 8%), and the least stable were funds from individuals (bankruptcy rate of 28.5%). The relationship between financial stability and the amount of capital and the structure of bank loans is less pronounced. However, one can say that banks that focused on lending to individuals experienced a worse crisis than banks whose main borrowers were legal entities. The tools considered in the article (the Kohonen self-organizing neural networks and maps) allow for efficiently segmenting data samples according to various criteria, including bank solvency. The “hazardous” zones with a high bankruptcy rate (up to 49.2%) and the “safe” zone with a low rate of bankruptcy (6.3%) were highlighted on the map constructed. These results are of practical value and can be used in analyzing and selecting counterparties in the banking system during a downturn.

Methodological Approach to Assessing the Investment Attractiveness of the Industry for the Banking Sector

2019 ◽  
Vol 26 (12) ◽  
pp. 52-60 ◽  
Author(s):  
A. V. Larionov
Keyword(s):  
Banking Sector ◽  
Public Investment ◽  
Methodological Approach ◽  
Banking System ◽  
The State ◽  
Bank Loans ◽  
Real Sector ◽  
Theoretical Concepts ◽  
Factors Affecting ◽  
The Real

This paper presents selected results of the study on improving information and methodological tools to increase the effectiveness of entrepreneur’s and state investment policy. Final result of this study - is developing guidelines for calculating the coefficient of investment attractiveness of the banking industry based on the physical theory of heat transfer. Classification of industries according to the degree of investment attractiveness allows to select the industries that will receive the least amount of resources from private investors. The least attractive sectors will be able to obtain public investment resources. For sectors with high investment attractiveness, public funds will only supplement the flow of free liquidity from the banking sector. The lack of liquidity in the real sector is compensated by attracting private funds, a significant share of which is in the banking sector. The real sector could also get the state investments. In this regard, it is important for the state and the banking sector to assess the industries from the position of the possibility of returning the funds, as well as obtaining additional income. The study presents guidelines for calculating the coefficient of investment attractiveness of the industry for the banking sector. The indicator takes into account both the distribution of bank loans in the economy by industry, and the expected profitability of lending, affecting the bank’s decision to issue a loan. Based on the analysis of theoretical concepts, it was demonstrated that the liquidity of the banking sector can be redistributed ≪freely≫ (due to market mechanisms) and ≪involuntarily≫ (through the implementation of state policy related to the direction of funds in certain sectors where there is a lack of resources). The study considers a methodological approach to the assessment of factors affecting the distribution of liquidity of the banking system in the real sector of the economy. The considered approach takes into account behavioral aspects of decision-making in the banking system.

scholarly journals The Role of Bank Loans and Deposits in the Monetary Transmission Mechanism In Malaysia

2009 ◽  
Author(s):  
Salina Kassim ◽  
M. Shabri A. Majid
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Banking System ◽  
Decomposition Analysis ◽  
Bank Loans ◽  
Monetary Transmission ◽  
Impulse Response Functions ◽  
Crisis Period ◽  
Transmission Process ◽  
Bank Deposits

This study attempts to determine the importance of the banking sector in the monetary transmission process in a developing economy. The study analyzes the Malaysian data focusing on three sample periods: the entire sample period (1989:01-2006:12); the pre-crisis period (1989:01-1996:12); and the post-crisis period (1999:01-2006:12). To achieve this objective, the study relies on two tests: first, the auto-regressive distributed lag (ARDL) model for the long-run relationship among the variables and second, the impulse response functions and variance decomposition analysis for the short-run relationship among the variables. The finding shows that both bank deposits and loans play crucial roles in the monetary transmission process in the economy, suggesting evidence for the money endogeneity theory of post-Keynesian economists. In particular, bank deposits and loans are shown to provide an important link from monetary policy to output. This underscores the importance of ensuring the soundness of banking system as a pre-requisite to economic stability in the absence of such market based tools as market-based actions on exchange rate or interest rates as monetary stabilisation tools.  

scholarly journals Sources of formation and evaluation of resource base of credit organization

2020 ◽  
Vol 2020 (2) ◽  
pp. 116-124
Author(s):  
Viktoria Valerievna Mandron ◽  
Anton Alekseevich Antonenko ◽  
Viktoria Dmitrievna Sadovnikova ◽  
Amalya Rudikovna Chobanyan
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Key Factors ◽  
Resource Base ◽  
Priority Task ◽  
Fund Mergers ◽  
The Stability ◽  
Effective Development ◽  
Retained Earnings

The article describes the key factors in the development of the state economic system. One of the key factors is the stability of the banking system. Currently, the banking sector in Russia is characterized by increasing instability and a decrease in the reduction of opportunities to replenish the resource base. It is noted that the sources of developing the resource base of credit or-ganizations include own and attracted resources. Own resources include retained earnings, trust funds, formation of a statutory fund, additional contributions of shareholders to the statutory fund, mergers and acquisitions, etc. Borrowed funds comprise interbank loans, issuance of debt securities, term deposits, etc. The main part of the resource base of banking sector belongs to the large credit organizations. The structure and mechanism of creating own and attracted resources by organizations of the banking sector are examined in detail. A review and analysis of existing methods of raising funds by credit organizations is presented. The main trends in changing the resource base have been studied; the assessment of the indicators characterizing the volume and dynamics of bank liabilities at the present stage has been presented. It has been found that the mechanism of forming the resource base of the banking sector has the certain difficulties. A key problem in or-ganizing fundraising mechanisms is the imbalance in long-term assets and liabilities. Today, credit organizations form a significant part of their resources from short-term sources. There has been in-ferred the existence of a priority task for the credit organizations in order to increase competition and liquidity: credit organizations have to choose a method to form a resource base that, at minimal cost, will ensure the payment of dividends, replenish reserves and funds, and provide necessary conditions for the effective development of the organization activities.

scholarly journals STABILITY OF THE RUSSIAN BANKING SECTOR: TRENDS AND RISKS

2021 ◽  
pp. 10-19
Author(s):  
E.V. Travkina ◽  
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
System Analysis ◽  
Negative Impact ◽  
Banking System ◽  
Qualitative Assessment ◽  
The Stability ◽  
Procedural Components ◽  
Statistical Survey ◽  
The Impact

In the modern conditions of functioning of the banking system, the issues that arise with the assess¬ment of the stability of a commercial bank individually and the banking sector as a whole in connection with the aggravation of the negative impact of many risk-forming factors associated with the manifestation of the pandemic are updated. In this regard, a comprehensive systematization of the existing Russian and international practice of implementing a qualitative assessment of the stability of banking organizations becomes important. The purpose of the study is to identify trends in the development of the Russian banking sector and the manifestations of banking risks that have a negative impact on its stability, as well as to identify practical opportunities to reduce the impact of these risks. The following general scientific and special methods were chosen as scientific tools for conducting this study: the method of system analysis, the method of retrospective analysis, as well as the methods of statistical survey. The information base of the study was the statistical data of the Bank of Russia. The theoretical and meth¬odological basis of the study was the works of such researchers as Fetisov G. G., Lavrushin O. I., Tarkhanov E. A., Muraviev A. K. Ovchinnikov O. P., Betz A. Yu., Peresetsky A. A. Kromonov V. S., etc. The study is based on the basic definitions of the stability of banking organizations and the regulatory framework for assessing the stability of the Russian commercial bank, as well as methods, mechanisms and procedural components for assessing the stability of the Russian banking sector. The results of the study are aimed at identifying trends and risks that affect the stability of both the Russian banking system as a whole and individual commercial banks. As practical recom¬mendations, the directions for further sustainable development of the Russian banking sector in the context of the negative impact of the pandemic on the national economy are presented.

scholarly journals Foreign Currency Loans and Stability of the Banking System in Poland

2018 ◽  
Vol 25 (3) ◽  
pp. 67-82 ◽  
Author(s):  
Grażyna A. Olszewska
Keyword(s):  
Exchange Rate ◽  
Banking Sector ◽  
Foreign Currency ◽  
Market Competition ◽  
Banking System ◽  
Mortgage Lending ◽  
Mortgage Loan ◽  
Swiss Franc ◽  
Mortgage Loans ◽  
The Stability

The aim of the study was to answer the question whether and to what extent foreign currency loans may pose a threat to the stability of the banking system in Poland. The reason for exploring this problem is the situation in which Swiss franc mortgage loan parties found themselves. The problem concerned not only Poland, but also appeared in Hungary, Spain and Ukraine. The aforementioned countries have adopted various strategies in order to solve this issue. Currently, there is a discussion in Poland over the form of solution to the situation in which the Swiss franc debtors have found themselves. This article presents the following hypotheses: (1) The credit policy of banks, which includes mortgage lending in Swiss francs, was a typical action in terms of risk management which in this case was two-way in nature. In addition, banks did not have the opportunity to significantly impose its policies on customers, as evidenced by the degree of market development and market competition. (2) Conversion of mortgage loans according to the CHF historic exchange rate can affect the stability of the banking system. The article presents the main types and sources of bank risks with particular emphasis on credit risk and foreign exchange risk. In addition, the paper shows the importance of this kind of risk in the context of the systemic stability of the banking sector in a situation of exchange rate stability disturbances. Verification of the research hypothesis was based on literature studies and analysis of statistical data.

Sign in / Sign up

Export Citation Format

Share Document