scholarly journals Modeling of the financial system?s stability on the example of Ukraine

Equilibrium ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 377-411
Author(s):  
Inna Shkolnyk ◽  
Serhiy Kozmenko ◽  
Olga Kozmenko ◽  
Volodymyr Orlov ◽  
Fathi Shukairi
Keyword(s):  
International Monetary Fund ◽  
Financial Institutions ◽  
Financial Stability ◽  
Desirability Function ◽  
Financial System ◽  
Value Added ◽  
The State ◽  
Depth Level ◽  
The International Monetary Fund ◽  
Range Of Variation

Research background: Financial stability is one of the key tasks in the functioning of the country?s financial system. National financial systems have significant differences in the level of their development, structure and approaches to regulation. There are no uniform world standards for methods and indicators of assessing financial stability. International financial institutions, including the International Monetary Fund, only outline certain areas and offer an indicative list of indicators that should be taken into account. Purpose of the article: Taking into account the peculiarities of the subject and object structure of Ukraine?s financial system, this study formed groups of indicators that reflect the state of financial depth, level of access and efficiency of the financial system, systematized by subject (financial institutions) and object financial markets) characteristics. Methods: The basis for the formation of a set of indicators is a matrix of characteristics of the financial system?s stability, which is formed according to the principle of 4x2 proposed by experts of the International Monetary Fund. The list of indicators to calculate the integrated indicator that characterizes the stability of the financial system of Ukraine, covers the period 2007?2019 and includes 29 indicators that take into account the peculiarities of its formation and development. Harrington?s desirability function is used to determine the integrated indicator that characterizes the state of financial stability. Findings & value added: The intermediate calculations obtained by modeling groups of indicators showed that the level of access to the financial system and the state of its depth are balanced during the study period (the range of variation of integrated indicators for these groups is minimal ? from 0.1 to 0.18), is at a satisfactory level and the basis for ensuring the financial system?s stability. Conversely, the efficiency of the financial system is low, and characterized by a high degree of volatility (range of variation ? 0.51). The obtained integrated indicator, which is in the range from 0.41 to 0.54 on the Harrington desirability scale, makes it possible to assess the state of the financial system?s stability in Ukraine as satisfactory, but with a high level of sensitivity to both external and internal shocks.

scholarly journals Latvijas valsts finanšu sistēmas drošība – starptautiskā finanšu sadarbībā

2015 ◽  
Vol 2 (2) ◽  
pp. 45-54 ◽  
Author(s):  
Mārtiņš Smilga
Keyword(s):  
International Finance ◽  
World Bank ◽  
Cash Flow ◽  
International Monetary Fund ◽  
Financial Institutions ◽  
Financial System ◽  
European Bank ◽  
Other World ◽  
The International Monetary Fund

Pēc Latvijas neatkarības atjaunošanas, lai garantētu valsts finanšu plūsmu un drošību, Latvija iestājās vairākās starptautiskajās finanšu institūcijās – Starptautiskajā Valūtas fondā, Eiropas Rekonstrukcijas un attīstības bankā, kā arī Pasaules Bankas organizācijās. Darbā tiks apskatītas šīs finanšu institūcijas, kuru dalībvalsts ir Latvija, Latvijas valsts statuss tajās, sadarbība, kā arī šo starptautisko finanšu institūciju darbības principi. Tiks secināts, cik lielu finanšu sistēmas drošību Latvijas valstij garantē dalība šajās organizācijās un vai tā ir pietiekama. After regaining independence, in order to insure national cash flow, Latvia joined a number of international finance institutions, namely, the International Monetary Fund, European Bank for Reconstruction and Development, and other World Bank organisations. This article examines these financial institutions, their main principles, collaborations, and the role of Latvia in them. Conclusions are made as to whether the security of the financial system due to membership in these organisations is sufficient.

scholarly journals ACTIVITY OF INTERNATIONAL FINANCIAL INSTITUTES AND THEIR PARTICIPANTS OF THEIR RELATIONS WITH UKRAINE

2019 ◽  
Keyword(s):  
International Monetary Fund ◽  
Financial Market ◽  
Financial Institutions ◽  
Technical Assistance ◽  
Financial Institution ◽  
Financial System ◽  
International Financial Institutions ◽  
The World ◽  
The International Monetary Fund ◽  
The Imf

The article deals with the peculiarities of the activities of international financial institutions and their relationship with Ukraine in modern conditions. The main goals and directions of the activities of key international financial institutions, such as the International Monetary Fund, the World Bank, are specified. It is noted that in the context of globalization their role and significance grows, because they are supranational regulators that affect financial security of both the individual countries of the world and security of the world financial market as a whole. The main reasons for the emergence of international financial institutions and the basic goals of their activities are systematized. The International Monetary Fund is the main international financial institution, which is the institutional basis of the world monetary and financial system. The IMF assesses the sufficiency of the global financial protection system, provides economic supervision and control over the safe operation of the global monetary and financial system, and should respond to emerging problems and imbalances in a timely manner, providing the necessary funding and technical assistance to countries under the approved arrangements. The analysis of the statistics on loans provided by the IMF within various lending mechanisms, the analysis of the state of the world 's debts to the IMF in the context of its privileged and non – beneficial loans, the peculiarities of the IBRD' s relations with the member countries are analyzed and there are identified current trends in this direction. The key problems and challenges in the work of international financial institutions are formulated and prospective ways of their development are defined, the use of which will promote both optimization of their activities and strengthening the security of the world financial market.

The Threats of Ukraine Financial Security: Identification and Systemization

2019 ◽  
pp. 73-80
Author(s):  
Oleksandra Maslii ◽  
Andrii Maksymenko ◽  
Svitlana Onyshchenko
Keyword(s):  
Financial Stability ◽  
System Development ◽  
Financial System ◽  
Economic Security ◽  
The State ◽  
Financial Security ◽  
Monitoring And Control ◽  
Development Indicators ◽  
Security Indicators ◽  
And Control

Place of monitoring and control of risks of financial stability of the state in the system of ensuring financial security of the state was substantiated. Methods of identifying threats to Ukraine's financial security through the current and strategic analysis of financial system development indicators were considered. Tendencies of economic development of Ukraine in the context of revealing sources of threats to financial stability of the state were analyzed. Dynamic analysis of the actual values of the financial security indicators of Ukraine as a whole and its separate components had been carried out. Threats to Ukraine's financial security were identified based on comparative and trend analysis. Reasons for the critical state of debt, banking and monetary security in the financial structure and the preconditions for the emergence of systemic threats had been investigated. Systematization of risks and threats to Ukraine's financial security by its components had been carried out. Influence of systemic threats in the financial sphere on the economic security of the state was generalized. International experience of monitoring financial stability of the state was analyzed. Additional risks to the national financial system are associated with the globalization and digitization of the state financial system that are not taken into account by valid methodological recommendations for calculating the level of economic security of Ukraine were highlighted.

From IMF Poster Child to Wayward Student

2019 ◽  
pp. 185-193
Author(s):  
Jerome Roos
Keyword(s):  
United States ◽  
International Monetary Fund ◽  
Financial System ◽  
The United States ◽  
Fiscal Discipline ◽  
Enforcement Mechanism ◽  
International Financial System ◽  
The International Monetary Fund ◽  
The Imf

This chapter considers why the International Monetary Fund (IMF) did it not prevent Argentina's record default of 2001. It suggests that the IMF was both unable and unwilling to stop it. While the second enforcement mechanism of conditional IMF lending was initially fully operative, helping to enforce Argentina's compliance in the first years of the crisis, the outcome of the megaswap greatly reduced the risk of an Argentine default to the international financial system. Combined with mounting domestic opposition in the United States to further international bailout loans, this greatly weakened the IMF's capacity to impose fiscal discipline on Argentina, eventually leading the Fund to pull the plug on its own bailout program, causing the second enforcement mechanism to break down altogether. The chapter recounts the process through which this breakdown occurred.

scholarly journals Financial stability: does social activism matter?

2019 ◽  
Vol 28 (2) ◽  
pp. 183-214
Author(s):  
Peterson K. Ozili
Keyword(s):  
Gender Equality ◽  
Financial Institutions ◽  
Environmental Sustainability ◽  
Financial Stability ◽  
Social Protection ◽  
Social Activism ◽  
Financial System ◽  
System Stability ◽  
Content Type ◽  
The Impact

Purpose This study investigate the impact of social activism on financial system stability. Design/methodology/approach Financial stability was analysed from two complementary perspectives: bank-led financial stability and financial system stability driven by sector-wide credit supply. Social activism was analysed from three perspectives: gender equality advocacy, environmental sustainability advocacy and social protection advocacy. Findings The findings reveal that gender equality and environmental sustainability advocacy have significant positive effects for financial stability, whereas social protection advocacy has a significant negative effect for financial stability. In addition, social activism has negative effects for financial stability in the post-2008 financial crisis era. Finally, there are differential effects for country-groups, for instance, social activism strongly improves bank-led financial stability in African countries and for BLEND countries (countries that are eligible for International Development Association (IDA) borrowing based on per capita income levels and are also creditworthy for some borrowing from the International Bank of Restructuring and Development). The findings are relevant for the on-going debate about whether social inclusivity and activism has any economic value for the stability of businesses and the financial system. The findings have implications. Research limitations/implications The implication for policy-making is that the pressure on, or commitment of, financial institutions to be socially inclusive in all social matters such as gender equality, environmental sustainability and social protection does not guarantee stability in the financial system – whether bank-led financial stability or sector-wide financial stability. Therefore, regulators should ensure that financial institutions exercise careful discretion when adjusting their risk models to include all “social risk” factors amidst the recent pressure on corporations to be socially inclusive. Practical implications Another implication for business practice is that business leaders in financial institutions should identify the optimal level of social inclusivity that improves the stability of their corporations, because it would seem counterproductive if business leaders adopt full-scale social inclusion (or considerations) that subsequently make their corporations financially unstable which could lead to loss of shareholders wealth. Originality/value This study is the first attempt to investigate the impact of social activism on financial stability to determine whether greater social activism promotes stability or instability in the financial system.

A Discussion of Mark Blyth's Austerity: The History of a Dangerous Idea

2017 ◽  
Vol 15 (2) ◽  
pp. 557-558
Author(s):  
Glyn Morgan
Keyword(s):  
Central Bank ◽  
International Monetary Fund ◽  
Financial Institutions ◽  
European Central Bank ◽  
Eurozone Crisis ◽  
European Central ◽  
History Of ◽  
Fiscal Austerity ◽  
The International Monetary Fund

The ongoing Eurozone crisis has brought to the fore the discourse of “austerity.” A number of countries, most dramatically Greece, have been called upon to institute policies of fiscal austerity as a condition of further support from the international financial community. The situation has generated some serious disagreements among economists, policymakers, and indeed important financial institutions such as the International Monetary Fund and the European Central Bank. Mark Blyth’s Austerity: The History of a Dangerous Idea speaks directly to these ongoing current debates. We have invited a range of political scientists working on related issues to comment on the book’s arguments and their relevance to the work that they do.

WHY ARE THE G-20 DATA GAPS INITIATIVE AND THE SDDS PLUS RELEVANT FOR FINANCIAL STABILITY ANALYSIS?

2013 ◽  
Vol 04 (03) ◽  
pp. 1350018 ◽  
Author(s):  
ROBERT HEATH
Keyword(s):  
Stability Analysis ◽  
Central Bank ◽  
International Monetary Fund ◽  
Financial Stability ◽  
Data Dissemination ◽  
Data Sets ◽  
Global Crisis ◽  
Close Link ◽  
Data Gaps ◽  
The International Monetary Fund

In the wake of the recent global crisis, the international community is giving an increased focus on stability of the financial system. With the increasing need for data sets to undertake this analysis, the question naturally arises as to what types of data are needed? While various data initiatives are underway, two initiatives at the forefront are: (1) the International Monetary Fund/Financial Stability Board Group of Twenty (IMF/FSB G-20) Data Gaps Initiative (DGI) which is endorsed by the G-20 Finance Ministers and Central Bank Governors as well as the IMF's International Monetary and Financial Committee and (2) the new Special Data Dissemination Standard (SDDS) Plus, aimed particularly at economies with systemically important financial sectors. This paper explains the relevance of the DGI for financial stability analysis and the close link with the SDDS Plus.

Book Reviews

2014 ◽  
Vol 52 (1) ◽  
pp. 234-236
Keyword(s):  
World Bank ◽  
International Monetary Fund ◽  
Financial Stability ◽  
International Affairs ◽  
Financial History ◽  
Bretton Woods ◽  
The World Bank ◽  
Research Associate ◽  
The World ◽  
The International Monetary Fund

Richard N. Cooper of Harvard University reviews, “The Bretton Woods Transcripts” by Kurt Schuler and Andrew Rosenberg. The Econlit abstract of this book begins: “Presents the verbatim record of meetings of the Bretton Woods Conference, which established the International Monetary Fund and the World Bank. Transcripts focus on Commission I—the International Monetary Fund; the committees of Commission I; and Commissions II and III—the World Bank and other means of cooperation. Schuler is an economist in the Office of International Affairs at the U.S. Department of the Treasury and Senior Fellow in Financial History at the Center for Financial Stability. Rosenberg is a research associate at the Center for Financial Stability.”

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