scholarly journals Bank Stability Measures in Dual Banking System: A Critical Review

2019 ◽  
Vol 5 (2) ◽  
pp. 59
Author(s):  
Norzitah Abdul Karim ◽  
Amirul Afiff Muhamat ◽  
Azreen Roslan ◽  
Sharifah Faigah Syed Alwi ◽  
Mohamad Nizam Jaafar
Keyword(s):  
Global Financial Crisis ◽  
Financial Institution ◽  
Banking System ◽  
Banking Supervision ◽  
Basel Committee ◽  
System A ◽  
Overall Stability ◽  
Regulatory Bodies ◽  
Banking Stability ◽  
Definition Of

The 2007-2009 Global Financial Crisis showed that despite reported as ‘healthy’ financial institution prior to crisis had indeed suffered many problems including liquidity during the crisis. Thus, there is confusion on the healthy financial institutions, leading to loss of confidence on the overall stability of the banking system. Thus, there is an urgent need to review the current measures of financial as well as banking stability. This paper aims to look at the definition of ‘stability’ used in the academic researches and by different regulatory bodies, like International Monetary Fund, Basel Committee for Banking Supervision (BCBS) and central banks in selected countries with dual banking systems. It is then, critically review indicators used as measures of financial as well as banking stability. This review is hope to identify areas of strengths as well as weaknesses of the current measures of stability and serves as foundation for further research in future.

Shadow Banking

2019 ◽  
pp. 529-569
Author(s):  
Tobias Adrian ◽  
Adam B. Ashcraft ◽  
Peter Breuer ◽  
Nicola Cetorelli
Keyword(s):  
Financial Crisis ◽  
Case Studies ◽  
Financial Intermediation ◽  
Financial Institution ◽  
Banking System ◽  
Financial Innovation ◽  
Shadow Banking ◽  
A Chain ◽  
Definition Of

Financial innovation has transformed intermediation from a process involving a single financial institution to a chain of transactions broken down among several institutions. Following the Great Financial Crisis, financial intermediation has shifted significantly from banks to non-banks, providing credit in the “shadows” of the regulated banking system. This chapter offers a definition of shadow banking and explanations for its existence, as well as providing an overview of attempts to measure its size. It explains how shadow banking differs from other forms of non-bank intermediation, in particular market-based finance, and discusses why regulators and academics should care about it. Further, the chapter reviews efforts to strengthen supervision and regulation and discusses some policy challenges on the horizon in the context of case studies.

scholarly journals Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

2019 ◽  
Vol 14 (4) ◽  
pp. 22-33
Author(s):  
Lyubov Khudoliy ◽  
Oleg Bronin
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Basel Iii ◽  
Banking Supervision ◽  
Macroeconomic Shocks ◽  
Bank Supervision ◽  
Banking Institutions ◽  
The Global Financial Crisis

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

scholarly journals Global administrative law: The Basel Committee revisited

2021 ◽  
Author(s):  
◽  
James Gallagher
Keyword(s):  
International Law ◽  
Global Financial Crisis ◽  
Legal Theory ◽  
Administrative Law ◽  
Democratic Accountability ◽  
Banking Supervision ◽  
Basel Committee ◽  
Policy Agendas ◽  
The Global Financial Crisis ◽  
Law Making

<p>Global Administrative Law is the branch of Global Governance that seeks to provide guidance and structures for decision‐making bodies and international organisations that rely on co‐operation between a range of international actors to achieve various objectives or implement policy agendas. In 2006, Michael S. Barr and Geoffrey P. Miller critically analysed the Basel Committee on Banking Supervision. Their article Global Administrative Law: The View from Basel sought to dispel the critiques that international‐law making processes lacked democratic accountability and oversight by offering the Basel Committee’s own processes as a model for international law‐making with greater accountability and legitimacy.  This article examines the Basel Committee since Barr and Miller’s 2006 article, in light of the global financial crisis and the development of ‘Basel III’. It will seek to determine whether the processes described by Barr and Miller proved to be effective, and if Global Administrative Legal theory is appropriately applied to the Basel Committee. Finally, the article will ask whether the Basel Committee still serves as a model for international law‐making with greater accountability and legitimacy, or if more work is needed to fulfill this model.</p>

scholarly journals Global administrative law: The Basel Committee revisited

2021 ◽  
Author(s):  
◽  
James Gallagher
Keyword(s):  
International Law ◽  
Global Financial Crisis ◽  
Legal Theory ◽  
Administrative Law ◽  
Democratic Accountability ◽  
Banking Supervision ◽  
Basel Committee ◽  
Policy Agendas ◽  
The Global Financial Crisis ◽  
Law Making

<p>Global Administrative Law is the branch of Global Governance that seeks to provide guidance and structures for decision‐making bodies and international organisations that rely on co‐operation between a range of international actors to achieve various objectives or implement policy agendas. In 2006, Michael S. Barr and Geoffrey P. Miller critically analysed the Basel Committee on Banking Supervision. Their article Global Administrative Law: The View from Basel sought to dispel the critiques that international‐law making processes lacked democratic accountability and oversight by offering the Basel Committee’s own processes as a model for international law‐making with greater accountability and legitimacy.  This article examines the Basel Committee since Barr and Miller’s 2006 article, in light of the global financial crisis and the development of ‘Basel III’. It will seek to determine whether the processes described by Barr and Miller proved to be effective, and if Global Administrative Legal theory is appropriately applied to the Basel Committee. Finally, the article will ask whether the Basel Committee still serves as a model for international law‐making with greater accountability and legitimacy, or if more work is needed to fulfill this model.</p>

scholarly journals Kingdom of Lesotho

2020 ◽  
Vol 20 (222) ◽  
Author(s):  
◽  
Keyword(s):  
Evaluation Process ◽  
Capital Adequacy ◽  
Assessment Process ◽  
Basel Iii ◽  
Banking Supervision ◽  
Basel Committee ◽  
Disclosure Requirements ◽  
Adequacy Assessment ◽  
Definition Of

This mission, a follow up to the earlier mission from IMF AFRITAC South (AFS) conducted in March 2017 (STX Mr. Bernie Egan), was designed to further help the authorities in the implementation of Basel II and select elements of Basel III. The main objectives of the mission were to help the CBL finalize the Draft Guidelines to banks on Pillar 1; assist in the implementation of Pillar 2, with attention paid to the Supervisory Review and Evaluation Process (SREP) and the banks´ Internal Capital Adequacy Assessment Process (ICAAP); and evaluate current disclosure requirements in view of the recent revision of Pillar 3 by the Basel Committee on Banking Supervision (BCBS). The adoption of select elements of Basel III especially those related to definition of capital was discussed.

scholarly journals Analysis of problematic debt in the banking system of Ukraine

2019 ◽  
pp. 9-12
Author(s):  
Olena KRUKHMAL ◽  
Oryna KOVRYHINA
Keyword(s):  
Financial Institution ◽  
Banking System ◽  
Absolute Amount ◽  
Credit Risks ◽  
Current State ◽  
Banking Institutions ◽  
The Absolute ◽  
Definition Of ◽  
Investment Capacity ◽  
Bad Debt

Crisis phenomena has led to an increase in problem debt in banks' loan portfolios, a decline in lending and a decrease in the number of banking institutions in Ukraine. The issue of debt reduction remains an urgent problem for Ukrainian banks, as it affects the bank's liquidity and can lead to insolvency or even bankruptcy of a financial institution, so banks have to make significant reserves for credit risks, which directly affects the investment capacity of banking institutions. The article was written to investigate the nature of the concept of problem credit, analyze the dynamics of problem loans of Ukrainian banks, investigate the reasons for increasing the absolute amount of arrears, suggest directions for improving the management of problem loans of banks in Ukraine. The purpose of the article is to analyze the dynamics of the share of problematic debt in the banking system of Ukraine in times of crisis, to study the current state and causes of problem loans. The positions of scientists on the interpretation of the essence of the concept of "problem credit" are analyzed, the author's approach to the definition of this concept is proposed. The dynamics of problematic debt in the banking system of Ukraine over the last ten years and in crisis periods is analyzed. The reasons for increasing the absolute amount of arrears are investigated Taking into account our results, namely the analysis of the dynamics of problem loans, we emphasize the expediency of our recommendations for overcoming bad debts. The proposed measures will have a positive effect on minimizing credit risks for banks, will help reduce the amount of bad debt and automatically ensure the growth of the country's economy.

scholarly journals The NBU Economic Standards as an Instrument for Regulating the Banking Activities

2021 ◽  
Vol 3 (518) ◽  
pp. 119-126
Author(s):  
L. V. Sus ◽  
◽  
Y. Y. Sus ◽  
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Banking System ◽  
Banking Supervision ◽  
Correlation And Regression Analysis ◽  
Basel Committee ◽  
Credit Risks ◽  
Banking Institutions ◽  
Banking Institution ◽  
The Impact

Researching the problems of banking supervision in the course of the policy of cleaning the banking system of Ukraine is of particular importance. The issues of efficiency of regulation of the activities of commercial banks with the help of economic standards of the NBU remain topical. The article is aimed at a theoretical-methodical substantiation of the NBU economic standards system and identifying the peculiarities of their application as instruments for regulating the banking activities. The state of compliance with capital, liquidity and credit risk standards by commercial banks of Ukraine is examined. A correlation and regression analysis of the impact of credit risk standards on the volumes of overdue credit arrears of banks is carried out. Ways to improve the system of regulation of the activities of commercial banks based on the principles developed by the Basel Committee on Banking Supervision are proposed. A further proposal is made as to introducing an additional economic standard for the regulation of credit risks, which would assess the risks of repayment of loans. In addition, it will be expedient for Ukraine to build a conceptual banking supervision, which will ensure close interaction of components in order to improve the efficiency of banking institutions. A comprehensive system of banking supervision should diagnose the level of risks and implement systems of their management at the level of each separate banking institution.

scholarly journals Do Deposit Insurance Systems Promote Banking Stability?

2021 ◽  
Vol 9 (3) ◽  
pp. 52
Author(s):  
Nafis Alam ◽  
Ganesh Sivarajah ◽  
Muhammad Ishaq Bhatti
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Global Financial Crisis ◽  
Institutional Environment ◽  
Insurance Coverage ◽  
Banking System ◽  
Insurance System ◽  
Deposit Insurance System ◽  
Banking Stability ◽  
The Impact

During the global financial crisis (GFC), regulators and policymakers turned to deposit insurers, along with monetary and fiscal measures, to help restore market confidence and promote financial stability. These events have focused attention on the role of deposit insurers and their role in the banking system. Recent literature reveals that during the GFC, deposit insurance maintained banking stability and successfully prevented customers doing ‘runs’ on the banks. The objective of this paper is to examine the deposit insurance system’s coverage limits and the impact on banking stability, in the context of a jurisdiction’s economic and institutional environment. Our model examines 61 jurisdictions in Asia and Europe with explicit deposit insurance systems, covering the pre- and post-GFC period between 2004 and 2014. We also examine subsets to investigate the effects of the region by comparing Asia and Europe, as well as a subset using the date of establishment of the deposit insurance system to understand if maturity matters. The results indicate that deposit insurance systems, and specifically deposit insurance coverage levels, have both positive and negative effects on banking stability. We find significant associations with certain economic and institutional factors; however, there are differences between the models we ran. These can be ascribed to regional factors and the date of when a deposit insurance system was established.

scholarly journals Ethics in Banks’ Publicly Accessible Documents: The Case of Slovenia

2018 ◽  
Vol 1 (3) ◽  
pp. 21
Author(s):  
Maja Tihole ◽  
Sabina Taškar Beloglavec
Keyword(s):  
Financial Institution ◽  
Banking System ◽  
Annual Reports ◽  
Ethical Behaviour ◽  
Socially Responsible ◽  
Front Office ◽  
Recent Financial Crisis ◽  
Part Deal ◽  
Definition Of ◽  
Back Office

The article focuses on ethics being mentioned and addressed to in banks’ publicly accessible documents in Slovenian banking system. Authors in the first part deal with the question, whether a bank as a financial institution can be ethical as such, taking the responsibility for formation and development in the recent financial crisis into consideration. However, ethics in banking refers to ethical behaviour and activities at all levels of banking operations: from back office to front office, bank’s policies and strategies, and nevertheless, banks’ influence and involvement in the community. Such banks provide financing for projects and scholarships, sponsor events, promote environmental protection and similar activities described as socially responsible banking. Socially responsible banks can by all means act ethically. Our research is geographically wise limited to the banking system of Slovenia and content wise by looking merely into the fact whether or not ethics and ethical principles are present in Slovenian banking system and being a subject of banks’ reporting. We do not place a judgment about individual bank or banking system behaviour regarding ethics. The research is fully based on the presumption that information held in annual reports and other publicly accessible sources are correct and honest. In that context we set and tested two hypotheses. First (H1), being divided into two sub hypotheses, deals with the presence of ethics and ethical activities (H1a) and definition of ethical bank behaviour in banks’ publicly accessible documents (H2a) and second (H2) tests, whether banks in Slovenian banking system have ethical codes. We have accepted H1a and H2 and partly accepted H1b.

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