The state and development problems of the banking sector of the Republic of Dagestan

2021 ◽  
Vol 27 (5) ◽  
pp. 1043-1057
Author(s):  
Naida Yu. MAGOMEDOVA ◽  
Patimat G. ISAEVА
Keyword(s):  
Empirical Analysis ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Tabular Method ◽  
National Bank ◽  
The Republic

Subject. This article explores the functioning of the regional banking sector of the Republic of Dagestan in the current conditions. Objectives. By studying the state and identifying problems, the article aims to determine the trends in the banking sector of the Republic of Dagestan in the context of the crisis economy of the region. Methods. For the study, we used an empirical analysis, comparison, and the tabular method to present data. Results. Analysis of the state of and changes in the banking sector of the Republic of Dagestan shows that the number of credit organizations in the region has significantly decreased. This is due to trends such as the consolidation of banks and the consolidation of the banking system as a whole. Relevance. The results of the study can be used by the Bank of Russia's Branch, the National Bank for the Republic of Dagestan, to develop the concept of Main Trends in the Economy and Monetary Sphere of the Republic of Dagestan in the following years.

CHARACTERISTICS OF THE FINANCIAL SECURITY OF THE BANKING SECTOR IN THE REGION (ON THE EXAMPLE OF THE REPUBLIC OF KOMI)

2021 ◽  
Vol 2 (5) ◽  
pp. 98-108
Author(s):  
M. S. KYZYUROV ◽  
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Financial Security ◽  
The Republic

The article presents the characteristics of the financial security of the regional banking sector, examines the threats to the financial state of the banking system in the region. The author's methodology for conducting a point assessment of financial security is proposed, based on the indicative method and the use of the nor-malizing function, as well as the distribution of ratings depending on the points awarded for six security zones. The method is tested on the example of the Republic of Komi. Significant threats to the financial security of the region have been identified, and recommendations for their elimination have been proposed. The meth-odology is proposed to be used when the state authorities and the Bank of Russia monitor the state of the banking sector in the region.

STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

2017 ◽  
Author(s):  
Olha Drachevska
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Banking Regulation ◽  
State Regulation ◽  
The State ◽  
Protective Measures ◽  
System Protection ◽  
Banking Activity ◽  
National Bank ◽  
Threatening Situation

The article is devoted to the analysis of scientific approaches to the interpretation of the concepts of "state regulation", "state regulation of banking", "banking regulation" and the measures on which the state regulation of banking is based. An analysis of the scientific literature in various fields allows us to conclude that scholars ambiguously interpret the term "state regulation of banking." Most often, state regulation of banking is seen as a system of measures by which the state through authorized bodies regulates the activities of banks. The domestic legislator considers the concept of "banking regulation" as one of the functions of the National Bank of Ukraine, which is to create a system of norms governing the activities of banks, determine the general principles of banking, banking supervision, liability for violations of banking legislation. The main purpose of banking regulation is security and financial stability of the banking system, protection of the interests of depositors and creditors. The importance of state regulation of banking as an integral part of public policy is emphasized. Effective state regulation of banking activities should ensure stable and uninterrupted operation of the banking system, guarantee the provision of quality services by banks to depositors and borrowers and protect their interests. Preventive and protective measures on which the state regulation of banking activity in Ukraine is based are considered. Preventive measures should be implemented through the approval of mandatory regulations. The application of protective measures should provide protection against the already threatening situation for the bank. Attention is also paid to the forms in which state regulation of banks by the National Bank is carried out. Such forms are administrative regulation and indicative regulation.

scholarly journals DEFIBRILLATORS OF EXPECTED MINES IN THE DEVELOPMENT OF THE BANKING SYSTEM OF UKRAINE: LESSONS OF THE CRISIS

2019 ◽  
pp. 26-36
Author(s):  
Bohdan LUTSIV
Keyword(s):  
Monetary Policy ◽  
Banking Sector ◽  
Internal State ◽  
Substantial Reduction ◽  
Banking System ◽  
Significant Deterioration ◽  
Policy Paradigm ◽  
Loan Portfolios ◽  
National Bank ◽  
The Government

Introduction. The effective functioning of the banking system determines the stability of the monetary market in the country. Stability and transparency of functioning and effective management are a guarantee of growth of deposits and attractiveness for investors. However, in recent years, the Ukrainian banking system is in a state of recession and does not fulfil the functions assigned to it. This led to the need for a so-called “purge” of the banking system and led to significant losses for both banks and for all the country’s economists. The instability that resulted from the crisis has caused even more distrust from people to banks. The main problems of the banking system of Ukraine in recent years is the curtailment of lending, a significant deterioration in the quality of loan portfolios, the reduction of its own capital and loss-making activity. Purpose. There is an analysis of the current post-crisis situation and expectations of changes in the development of the banking system of Ukraine in accordance with the new monetary policy paradigm. Results. The last economic crisis (2014–2015) is not generated by the banking system itself, but rather by economical quality. The policy of the Government and the monetary policy of the National Bank of Ukraine. Ukrainian banks are heavy and burdened with a large share of unprofitable loans, and the banking system itself is highly concentrated but not sufficiently consolidated. At the beginning of the crisis, the state of the banking sector was characterized by fictitious capitalization of banks, the involvement of the business of its shareholders, the with drawal of regulator refinancing, huge volumes of “garbage” securities in bank portfolios, etc. The National Bank of Ukraine has resorted to a “purge” of the banking system, in which the subjectivity and opacity appeared. The whole burden of reimbursing the costs associated with the withdrawal from the market of bankrupt banks took upon itself the fund for guaranteeing deposits of individuals. The influence of state banks on the general state of banking sector reform and ways to improve corporate governance in state banks is shown. The so-called defibrillators of changes which are expected in the near future in development of the banking system of Ukraine are defined. Conclusions. At present, the banking system of Ukraine demonstrates the following key trends: the end of the “bankruptcy” period; the problem of improvement of loan portfolios and optimization of operations with the bonds of an internal state loan is acute; the need for a substantial reduction of state participation in the banking system.

scholarly journals Institutional development and bank competitive transformation in late industrializing economies: the Spanish case

2016 ◽  
Vol 18 (1) ◽  
pp. 27-62 ◽  
Author(s):  
Angela Garcia Calvo
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Historical Analysis ◽  
Institutional Development ◽  
The State ◽  
Role Of The State ◽  
Strategic Coordination ◽  
The Government ◽  
New Generation ◽  
Late Industrializing

This paper explores the contribution of national institutions to the competitive transformation of big commercial banks in late industrializing countries through the analysis of the Spanish case. The paper uses a comparative historical analysis to establish that strategic coordination between the state and large banks is a structural feature of the banking sector but may be articulated differently depending on the balance of power between states, banks and industry, the preferences of these actors, and their resources. Using evidence from Spain since the late 1970s, the paper argues that in this country, state-bank coordination was articulated as a non-hierarchical system of negotiated interactions and mutual exchanges of benefits between small groups of decision-makers at the government, the central bank, and big banks. Under the Spanish model, large banks contributed to the fulfillment of public policy objectives to develop the central bank's capacity to conduct monetary policy, strengthen supervision of the banking system, and modernize the financial sector. In exchange, big banks benefited from a favorable regulation that enabled them to restructure, consolidate the leadership of a new generation of bankers, and reach the efficiency frontier of their industry. The paper contributes to the literature of institutionalism by questioning the traditional dichotomy between market and strategic coordination. It also contributes to the literature of competitiveness by stimulating debate about the role of the state in supporting the transformation of big business.

scholarly journals ISSUES OF FORMING PERSONNEL CAPACITY IN THE CONTEXT OF THE DEVELOPMENT OF THE ISLAMIC BANKING SECTOR IN THE REPUBLIC OF TAJIKISTAN

2020 ◽  
pp. 127-132
Author(s):  
Sh. S. Sharipov
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Banking System ◽  
Training System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Personnel Training ◽  
Banking Services ◽  
The Republic

The issues of forming personnel capacity in the Republic of Tajikistan, in the context of the launch of the first Bank providing services in accordance with the principles of Islamic Finance have been considered. For the purpose of a comprehensive assessment of the situation, the experience of individual countries in this area of activity, as well as the experience of previous research, ware studied. Conclusions about the state and prospects of development of the Islamic banking system in the current conditions, as well as a description of a number of measures, the implementation of which will ensure the acceleration of formation of the necessary personnel capacity in the Republic of Tajikistan have been given. In particular, the proposed measures address the issues of creating a competitive personnel training system, improving the quality of banking services provided and customer satisfaction.

scholarly journals ANTI-CRISIS REGULATION OF BANKING BUSINESS: CASE OF AZERBAIJAN

2020 ◽  
Author(s):  
Fakhri Fuad Murshudli ◽  
◽  
Muslum Mursal Mursalov ◽  
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Business Case ◽  
Independent Field ◽  
Banking Activity ◽  
Banking Business ◽  
The Republic ◽  
Definition Of

The article examines the experience of the Republic of Azerbaijan (RA) in anti-crisis regulation of the banking sector. The author reveals the current state of the banking system of RA. Its development is monitored from three time perspectives – on the eve of the crisis (2005-2007), in the crisis (2008-2009) and post-crisis periods (2010-2020). The characteristics and features of each of them are revealed. The conceptual essence of the definition of “anti-crisis management” is revealed. The factors contributing to the study of anti-crisis management (regulation) of banking activity as an independent field of scientific research, as well as the distinctive features of its methods and tools are highlighted. The article analyzes the impact of anti-crisis regulation on the banking system of RA in the context of the global economic crisis, as well as anti-crisis measures taken by the country’s monetary authorities at various stages of the modern financial collapse. The authors concluded that these measures are inconsistent, and that it is necessary to further improve regulation and supervision in this area, aimed at achieving high financial stability of the banking system, primarily due to an adequate level of capitalization, optimal indicators of financial reserves and liquidity.

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.

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.

State and tendencies of development of the banking system in the context of structural reform of the national economy of Ukraine

2020 ◽  
Vol 23 (12) ◽  
pp. 84-98
Author(s):  
Marta Barna ◽  
Nadiya Ruschyshyn
Keyword(s):  
National Economy ◽  
Government Regulation ◽  
Structural Changes ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
The State ◽  
Structural Reform ◽  
Bank Capital ◽  
Stage Of Development

The relevance of the study lies in the fact that the fulfilment of the potential of the banking system is capable of providing positive structural changes in the economy of Ukraine. The purpose of the study is to analyse the state and trends of the banking system of Ukraine in the focus of its impact on the structural reform of the national economy. The study used methods of statistical analysis (to analyse the state and dynamics of the banking system) and the analogue method (to identify the extent of the development of the banking system on structural changes in the economy). It was substantiated that the effective functioning of the banking system is key to successful economic development of the national economy, in particular its reform. It is proved that a mechanism of redistribution of financial resources and money acts through the banking system; therefore, they are mobilised and involved in economic circulation in those sectors of the economy that need it most. The state and trends of development of the banking system as preconditions of fulfilment of its potential in structural reform of national economy are generalised. As a result of the analysis of the state and trends of the banking system, both their positive and negative features were identified. It is proved that in Ukraine, at the present stage of development of the national economy, the banking system has been cleared of low-liquid and conditionally fictitious banking structures, the volumes of assets, in particular highly liquid ones, are growing, and the loan portfolio of banks is improving, their financial results, liquidity and solvency, resistance to currency shocks, bank lending to the economy increase. The study also demonstrated that the country's banking system is described by a number of systemic shortcomings, especially the high level of concentration of bank capital and deposits in the largest banks, as well as state banks in a number of segments of the banking sector by number of departments, ATMs, terminals, active payment cards. There is a trend to weaken the penetration of the banking sector into the economy, especially in terms of affordable lending to individuals and strategic sectors of the economy. The practical value of the study lies in the fact that based on the identified shortcomings of the banking system and its impact on structural reforms, strategic lines of work for improving government regulation in this area have been identified

RESEARCH OF REALIA OF BANK LENDING TO ECONOMIC ENTITIES

2017 ◽  
Author(s):  
Nataliya Sainchuk ◽  
◽  
Nataliya Marusyak ◽  
Bohdan Haruk ◽  
◽  
...  
Keyword(s):  
Banking Sector ◽  
Foreign Currency ◽  
Negative Impact ◽  
Bank Lending ◽  
The State ◽  
Economic Stability ◽  
National Bank ◽  
Systemic Problems ◽  
Negative Balance ◽  
Solvency Ratio

It has been determined in the article that the development of the market economy in combination with internal problems and external challenges creates certain conditions for bank lending, which are characterized by instability and slow pace. This, in turn, has a negative impact on the economy in general and on the business sector in particular. In the process of studying this issue, both on the part of the banking segment and on the part of enterprises, there have been discovered systemic problems that are parallel — the imbalances of the banking segment are negatively correlated with enterprises in terms of lending. It has been analyzed that the number of banks decreased during the study period. This is evidence that banks with a significant solvency ratio remain in the financial market. This situation signifies that the banking sector is evolving in line with legislation, which, although variable, is quite "rigid" in nature. Whereas this reflects the fact that the banking sector should lend to businesses. In the context of the study, the phenomenon of declining lending to businesses and identifying factors that have a significant impact on receiving loans by enterprises: inflation, the discount rate of the National Bank of Ukraine, and the "price" of new loans. It has been substantiated that the state of bank lending to economic entities today is unsatisfactory. This is due to the fall of the industrial production index, and the negative balance of export-import operations. Certain priority sectors of the national economy also have a negative trend. During the analyzed period, they tend to decline. In addition to the factors that have an impact on these indicators, it has been emphasized that the greatest impact on the state of corporate lending has the instability of the economy. This factor has a negative impact on bank lending, which in turn correlates with the economic stability of enterprises. Therefore, the article has concluded that banks do not provide loans because companies have a negative credit history, and it is because the banking sector issues expensive loans (sometimes in foreign currency and for the short term), and this results in non-repayment of loans.

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