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.

Boosting the Business Activity: Does the Banking System have a Potential?

2018 ◽  
Vol 11 (3) ◽  
pp. 27-37
Author(s):  
M. Yu. Pechalova
Keyword(s):  
Banking Sector ◽  
Driving Forces ◽  
Banking System ◽  
Business Activity ◽  
Resource Base ◽  
Loan Portfolio ◽  
Balanced Growth ◽  
Russian Economy

Despite the currently observed positive dynamics of the industrial production, the problem of reversing the Russian economy to the sustainable and balanced growth has not been resolved. The expansion of the investment lending by banks might give the necessary impetus to the economic development; however, the weak demand of corporate borrowers for long-term loans of late is counterbalanced by the unwillingness of creditors themselves to be at risk. The purpose of the study was to identify the reasons why the Russian banking system practically lost its potential to promote the business activity in the economy. The paper analyzes the expectations and uncertainty factors in the economy, exposes weaknesses of the resource base and the loan portfolio of the banking system and reveals the key trends in the regulation of the financial-and- banking sector. It is concluded that the problems aggregated during the last two crises, combined with the attitude of the regulator insisting on the limited role of banks in investment lending, do not allow the banking system to prove itself as one of the main driving forces contributing to the growth of other market segments.

scholarly journals Антикризисное управление: анализ изменений механизмов финансового оздоровления кредитных организаций в национальной экономике

2019 ◽  
pp. 110-123
Author(s):  
Алина Кинаш
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Current State ◽  
Market Malfunction ◽  
The Russian Federation ◽  
License Revocation ◽  
The Stability ◽  
Financial Recovery ◽  
Current Mechanism

Активная работа по обеспечению устойчивости банковского сектора России, стартовавшая в 2013 г., предусматривает применение механизма отзыва лицензии или финансового оздоровления, которое осуществляется при выявлении системной значимости банка как на уровне банковской системы в целом, так и на региональном уровне, а также риска нарушения функционирования финансового рынка, риска ухудшения положения в отраслях экономики или региона. В настоящее время в экономических школах нет единого мнения относительно того, способно ли государство как публично-правовое образование долгосрочно поддерживать устойчивость банковской системы или лучше оставить эту задачу саморегулирующемуся рынку, однако все эти вопросы крайне актуальны для современного состояния национальной экономики. В работе представлены хронология изменения механизмов санации в Российской Федерации и практики их применения, затронуты вопросы практики применения нормативно-правовой базы банковской сферы, выделены положительные и отрицательные характеристики применения текущего механизма. The energetic efforts to ensure the sustainability of the Russian banking sector started in 2013. It stipulated a license revocation or the financial recovery instruments application. The financial recovery is performed when identifying the bank systemic importance both at the level of the banking system as a whole and at the regional level, as well as the risk of the financial market malfunction, the risk of declining in the branches of economy or in the region. At present there is no consensus of opinion among the economic schools as to whether the state as a legal public entity is able to maintain the stability of the banking system at a long term or it would be better off leaving this responsibility to the self-regulating market. However all these issues are extremely relevant to the current state of the national economy. The article aims at reviewing the chronology of the Resolution Mechanisms changes in the Russian Federation, as well as the practice of their application, encompasses the issues of the banking sector regulatory basis application. Positive and negative characteristics of the current mechanism application are shown.

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 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 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 STRATEGIC ASPECTS OF DIVERSIFICATION AND MODERNIZATION IN THE ECONOMY OF SINGLE-INDUSTRY SETTLEMENTS

2018 ◽  
Vol 2018 (2) ◽  
pp. 139-145
Author(s):  
А. Севастьянова ◽  
A. Sevastyanova
Keyword(s):  
Mineral Resources ◽  
Development Planning ◽  
Raw Material ◽  
Strategic Partnership ◽  
Resource Base ◽  
Industrial Sectors ◽  
Single Industry ◽  
Industry Affiliation ◽  
Effective Development

<p>The current research features approaches to solving the problems associated with a decline in the development of old industrial sectors in single-industry towns (monocities, or monocommunities). The target of the study is to show the necessity of strategic approach and interaction of all management levels. Particular attention is paid to resource-dependent communities. Enterprises of mineral resources sector have limits of effective development, associated with gradual depletion of their resource base. Diversification and modernization of the economy of resource-dependent communities are logically linked to a timely achieving of strategic objectives to ensure their long-term sustainable development. Strategic aspects are also important for development planning in the sphere of new raw material deposits. A comprehensive analysis should help avoid the risks of creating new monocommunities with a poor prospect of long-term development. The article includes an analysis of international experience of Germany, Canada, and China. It is shown that a progress in solving the problems of company towns heavily depends on a strategic partnership between the federal, the regional, and the municipal governments, as well as on their collaboration with business. A conclusion is made that a uniform strategy for the development of various single-industry towns does not exist. The choice of the way of the development for each particular monotown is determined<br />by its socio-economic characteristics. Among those, remoteness or proximity to large urban agglomerations, industry affiliation and prospects for the development of the cityforming<br />enterprise, opportunities for economic diversification, investment potential and opportunities for attracting investors are of paramount importance. The process of positive changes, as a rule, is slow and complicated. Thence, it is important to justify the purpose and ways to achieve it. As a rule, extrapolation methods do not work in this case</p>

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.

The Risk of Insolvency and its Impact on Romanian Banks

2016 ◽  
Vol 7 (2) ◽  
pp. 97-104
Author(s):  
Elena Violeta Drăgoi ◽  
Larisa Elena Preda
Keyword(s):  
Sustainable Development ◽  
Banking System ◽  
Capital Adequacy ◽  
Beneficial Effects ◽  
The Stability ◽  
The Impact

Abstract The new regulations on capital adequacy aimed to strengthen the stability of financial and banking system because a stable banking system contributes to assure a sustainable development with long term beneficial effects on economy. This article represents a review of the impact on new higher standards for Romanian banks regarding capital adequacy.

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.

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