TRENDS IN BANK LENDING IN UKRAINE

2017 ◽  
Author(s):  
Nataliia Moroz ◽  
◽  
Lidiya Bondarenko ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Banking System ◽  
Bank Lending ◽  
Loan Portfolio ◽  
Quality Requirements ◽  
Balance Sheets ◽  
Rate Level ◽  
Systemic Risks ◽  
Systemically Important Banks

A study has been carried out on the credit environment of the banks, which constrains and stimulates their credit activity, is the crisis caused by the COVID-19 pandemic, as well as the monetary policy of the regulator (interest rate level, changes in the assessment of the creditworthiness of borrowers). Trends in lending to the banking system of Ukraine, in particular the dynamics of credit operations by categories of borrowers have been analysed. The reasons for the negative trends in bank lending have been identified. Ten banks with the largest share of non-performing loans have been identified, as well as six banks with the largest share of non-performing loans as of 01.08.2020. It has been shown that 75 per cent of non-performing loans belong to four systemically important banks, the lack of adequate functioning of which may increase the systemic risks of the banking system. It was suggested that the regulator should tighten the quality requirements of the loan portfolio of systemically important banks and encourage them to write off, sell and restructure non-performing loans more actively from their balance sheets.

scholarly journals Monetary policy and bank lending in euro area since the outset of the global financial crisis

2020 ◽  
pp. 10-10
Author(s):  
Agata Wierzbowska
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Euro Area ◽  
Global Financial Crisis ◽  
Banking System ◽  
Bank Lending ◽  
Liquidity Provision ◽  
The Individual ◽  
The Global Financial Crisis ◽  
The Impact

In this article, we present the impact of the monetary policy stance of the European Central Bank(ECB)since 2007 on bank lending in the euro area and compare the effects of the main measures: interest rate changes, liquidity provision, and asset purchase programmes. We also analyse the channels through which monetary policy might influence the banking system and narrow our focus to the individual countries. The main results indicate stimulating impact of ECB?s policy stance on bank lending that extends its influence mainly through interest rate cuts further supported by the liquidity provision and asset purchase programmes. However, we also find considerable differences across the member states, of ten depending on the state of the banking system and loan demand in the member state. The results support the variety of monetary policy measures introduced by the ECB, as each played its own role in supporting the banking system and encouraging bank lending in the euro area.

scholarly journals The Deposits Channel of Monetary Policy*

2017 ◽  
Vol 132 (4) ◽  
pp. 1819-1876 ◽  
Author(s):  
Itamar Drechsler ◽  
Alexi Savov ◽  
Philipp Schnabl
Keyword(s):  
Monetary Policy ◽  
Market Power ◽  
Banking System ◽  
Strong Relationship ◽  
Bank Lending ◽  
Liquidity Premium ◽  
Balance Sheets ◽  
Fed Funds Rate ◽  
Bank Balance Sheets ◽  
Transmission Of Monetary Policy

Abstract We present a new channel for the transmission of monetary policy, the deposits channel. We show that when the Fed funds rate rises, banks widen the spreads they charge on deposits, and deposits flow out of the banking system. We present a model where this is due to market power in deposit markets. Consistent with the market power mechanism, deposit spreads increase more and deposits flow out more in concentrated markets. This is true even when we control for lending opportunities by only comparing different branches of the same bank. Since deposits are the main source of liquid assets for households, the deposits channel can explain the observed strong relationship between the liquidity premium and the Fed funds rate. Since deposits are also a uniquely stable funding source for banks, the deposits channel impacts bank lending. When the Fed funds rate rises, banks that raise deposits in concentrated markets contract their lending by more than other banks. Our estimates imply that the deposits channel can account for the entire transmission of monetary policy through bank balance sheets.

ANALYSIS OF SYSTEMATICALLY IMPORTANT BANKS OF UKRAINE

2017 ◽  
Author(s):  
Rita Korolenko ◽  
◽  
Iryna Ukhova ◽  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
State Level ◽  
Bank Lending ◽  
Balance Sheets ◽  
Loan Portfolios ◽  
Systemic Risks ◽  
Banking Institutions ◽  
Systemically Important Banks ◽  
Authorized Capital

The article considers the key performance indicators of systemically important banks of Ukraine, which are the main players in the banking sector of Ukraine. It is established the contribution of SIB to the domestic BSU is 82,45% of assets, 83,77% of liabilities, 73,36% of equity, 86,14% of profit of BSU in 2019. Emphasis is placed on the fact that the BSU has a law «80-20, 20-80»: 14 SIBU (18,67%) of system participants generates 82,45% of the resources of the entire BSU. These financial institutions have a significant impact on the overall result of the BSU and they are systemically important. The problems of functioning of domestic systemically important banks are considered and it is revealed that these institutions have similar problems, which can be defined as follows: slowdown of bank lending of systemically important banks of Ukraine; a significant share of bad debts on the balance sheets; imbalance of the indicator «loans-deposits» (LDR); tendency of low values of profitability of deposits of systemically important banks of Ukraine; the share of the authorized capital of SIB exceeds 60% of the own capital (unprofitable activity of banks due to excessive amount of toxic loans, dependence on owners' funds); nationalization of the banking sector and inefficient management of state SIB. General recommendations are provided for solving these problems: it is necessary to ensure changes in the legislative field of regulation of banks of this group at the state level (for example, the NBU's introduction of monthly financial stability reporting) and improve the management of the banking institutions themselves (for example, optimize loan portfolios, form a strategy for managing systemic risks before the onset of the crisis, the implementation of the «sports interest» method to deal with problem debts).

Trends and problems of retail Bank lending in modern conditions on the example of «Sberbank of Russia»

2020 ◽  
pp. 156-165
Author(s):  
В.В. Мандрон ◽  
А.Ю. Ефименко ◽  
Д.Г. Свиридов
Keyword(s):  
National Economy ◽  
Positive Impact ◽  
Banking System ◽  
Bank Lending ◽  
Real Income ◽  
Real Estate Market ◽  
The State ◽  
Loan Portfolio ◽  
Effective Development

Эффективное развитие механизмов кредитования физических лиц оказывает положительное влияние не только на рынок недвижимости, автомобильную промышленность, потребительский рынок, но и на темпы развития банковской системы, что значительно влияет на рост национальной экономики и улучшает качество жизни населения РФ. Исследование посвящено ключевым тенденциям и проблемам функционирования рынка розничного кредитования в современных условиях. Определены главные проблемы, которые оказывают существенное влияние на организацию рынка розничного кредитования, его объемы и качество. Проведен анализ данных отражающих состояние рынка розничного кредитования на современном этапе. На состояние данного сегмента кредитного рынка оказывает влияние как общее экономическое состояние государства, курс денежно-кредитной политики Банка России, уровень реальных доходов населения, а также форс-мажорные ситуации. В статье дается оценка объема, состава и структуры кредитного портфеля одного из крупнейших финансово-кредитных институтов страны – ПАО «Сбербанк России». Особое внимание уделено кредитованию физических лиц в разрезе отдельных форм и видов кредитных инструментов, отражается связь состояния национальной экономики и качества кредитного портфеля банка. Effective development of mechanisms for lending to individuals has a positive impact not only on the real estate market, automotive industry, consumer market, but the pace of development of the banking system, which greatly affects the growth of the national economy and improves the quality of life of the Russian population. The research is devoted to the key trends and problems of functioning of the retail lending market in modern conditions. The main problems that have a significant impact on the organization of the retail lending market, its volume and quality are identified. The analysis of data reflecting the state of the retail lending market at the present stage is carried out. The state of this segment of the credit market is influenced by the General economic state of the state, the rate of monetary policy of the Bank of Russia, the level of real income of the population, as well as force majeure situations. The article provides an assessment of the volume, composition and structure of the loan portfolio of one of the largest financial and credit institutions in the country-PJSC Sberbank of Russia. Special attention is paid to lending to individuals in the context of individual forms and types of credit instruments, reflecting the relationship between the state of the national economy and the quality of the Bank's loan portfolio.

A Note on the ECB's Monetary Policy when Confronted with International Systemic Risks

2005 ◽  
Vol 5 (1) ◽  
pp. 1850029
Author(s):  
Alyson Bloomer ◽  
Thierry Warin
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Institutional Environment ◽  
September 11 ◽  
Liquidity Management ◽  
Systemic Risks ◽  
Before And After ◽  
The U.S ◽  
The Eu

This paper provides an analysis of the liquidity management of the euro. We tested the influence of five variables (the exchange rate, the price of oil, the EU deficit, the EU interest rate, and the U.S. interest rate) on the euro liquidity supply in addition to the fluctuation of the liquidity supply before and after September 11, 2001. While the literature focuses on the internal European institutional environment, this study looks at the international systemic risks and their influence on the liquidity supply. Ultimately, we come to the conclusion that the ECB’s liquidity supply is affected by international factors.

The roles of domestic and foreign Islamic banks in Malaysian monetary transmission

2014 ◽  
Vol 7 (2) ◽  
pp. 161-169 ◽  
Author(s):  
Fidlizan Muhammad ◽  
Asmak Ab Rahman ◽  
Ahmad Azam Sulaiman
Keyword(s):  
Monetary Policy ◽  
Banking System ◽  
Bank Lending ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Bank Lending Channel ◽  
Content Type ◽  
Lending Channel ◽  
Level Data ◽  
Loan Supply

Purpose – The aim of this paper is to empirically test the presence of the bank lending channel for the Islamic banking system in Malaysia. Design/methodology/approach – Distributional effects from monetary policy changes were analyzed by three bank characteristics such as size, liquidity and capital. Using the econometric model by Kashyap and Stein (1995), the implementation of a policy contraction leads to reduction in loan supply because some banks may not able to offset a reduction in deposits. The paper explores the response shown between domestic and foreign Islamic banks in Malaysia using bank-level data from 2005 to 2010. Findings – The empirical result indicates presence of the bank lending channel in the Islamic banking system in Malaysia, size and liquidity as sources of difference response of financing supply in domestic bank and capital for foreign Islamic bank and Islamic interbank rate as an efficient tool in conducting monetary policy especially in the Islamic banking system. Originality/value – The paper manages to explore the effectiveness of Islamic the monetary policy tools in the Islamic Banking system in Malaysia. Using Islamic interbank rate as a policy tool, it provides valuable view to policy makers, who are analyzing for efficiency of transmission channel.

What Do a Million Observations on Banks Say About the Transmission of Monetary Policy?

2000 ◽  
Vol 90 (3) ◽  
pp. 407-428 ◽  
Author(s):  
Anil K Kashyap ◽  
Jeremy C Stein
Keyword(s):  
Monetary Policy ◽  
Bank Lending ◽  
Monetary Transmission ◽  
Bank Lending Channel ◽  
Data Set ◽  
Balance Sheets ◽  
Lending Channel ◽  
The Impact ◽  
Transmission Of Monetary Policy ◽  
Quantitative Importance

We study the monetary-transmission mechanism with a data set that includes quarterly observations of every insured U.S. commercial bank from 1976 to 1993. We find that the impact of monetary policy on lending is stronger for banks with less liquid balance sheets—i.e., banks with lower ratios of securities to assets. Moreover, this pattern is largely attributable to the smaller banks, those in the bottom 95 percent of the size distribution. Our results support the existence of a “bank lending channel” of monetary transmission, though they do not allow us to make precise statements about its quantitative importance. (JEL E44, E52, G32)

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 Role & Impact of Interest Rate in Jordan’ Economy from Points of View of Banking Managers

2017 ◽  
Vol 7 (4) ◽  
pp. 15
Author(s):  
REEM SAHER Alaraj
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Lower Cost ◽  
Banking System ◽  
Islamic Banks ◽  
Demand For Money ◽  
Two Factors ◽  
Effective Role ◽  
Points Of View

<p><strong>The research aimed at investigating the role, impact and determinants of interest rate in Jordanian economy from view points of banking managers in Jordan. The methodology is descriptive and analytical using mean, standard deviation, t-test and percentages as statistical tools. The study concluded that the role of interest rate in Jordanian monetary policy is restricted by two factors: pegging JD with US$ which limits the effective role of interest rate in Jordanian monetary policy and the dual banking system of traditional and Islamic banks where Islamic banks do not deal with Interest rate. Raising interest rate in Jordan caused higher cost of credit for companies, less competitiveness of exports, less liquidity in the economy, higher profit margin for banks, higher exchange rate of JD and higher inflation. Nevertheless, lowering interest rate in Jordan caused lower cost of borrowing, higher liquidity, better competitiveness of exports and more credit facilities by banks but inflation was much lower. </strong><strong>Moreover, the study concluded the determinants of interest rate in Jordan are money supply, demand for money, inflation and economic conditions. </strong><strong>In order to have an effective role for interest rate in monetary policy, the researcher recommends pegging JD to a basket of currencies</strong>. </p>

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