scholarly journals Financial Stability of Banks and Its Monitoring in Ukraine

2020 ◽  
pp. 69-77
Author(s):  
Svitlana Yehorycheva ◽  
Oksana Vovchenko
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Management ◽  
The World Bank ◽  
Banking Institutions ◽  
National Bank

The concept of financial stability of banks as a complex and multifaceted category, the content of which is constantly enriched, has been developed. Approaches to determining the financial stability and financial stability of banks, in particular, are considered. It is noted that modern operational, functional, institutional, technological features of banks cannot but affect the content of their financial stability and update the mechanisms for its ensuring. Emphasis is placed on the need for early adaptation of banking institutions to objective transformations of the economic environment through the integration of risk-oriented approach and the use of advanced methods of bank management in all its business processes. The level of financial stability of banks in Ukraine is monitored, for which the main volume indicators of their activity and the Bank Z-score indicator calculated by the World Bank are analyzed. The analysis of indicators of banks’ penetration into the economy shows that the development of the banking sector lags behind the needs of the real sector, so its financial stability is relative, although there are trends to strengthen it. The constant increase in the capital base of Ukrainian banks and their compliance with capital adequacy ratios is particularly positive. However, the quality of banks’ loan portfolios is unsatisfactory, which poses a threat to their financial stability, even given the large amounts of formed provisions for loan impairment. The dynamics of financial stability indicators calculated by the National Bank of Ukraine confirms the existence of prerequisites for its long-term provision, despite the difficult environmental conditions. The directions of monitoring of financial stability offered in the article allow diagnosing its deterioration in time to prevent critical consequences for the national economy.

scholarly journals Финансовая устойчивость банковского сектора Казахстана

2020 ◽  
pp. 124-132
Author(s):  
D. Kerimkulova ◽  
G. Alina ◽  
M. Zholamanova ◽  
Д.Д. Керимкулова ◽  
Г.Б. Алина ◽  
...  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Equity Capital ◽  
Capital Adequacy ◽  
Theoretical Development ◽  
National Bank ◽  
Second Tier ◽  
Relationship Of ◽  
The Impact

Today, the banks’ financial stability remains one of the most important problems in both scientific and practical aspects. Various factors play a role in achieving financial stability. The most important of which are the adequacy and quality of equity capital, which also serves as an indicator of financial stability. Based on this, this article examines the relationship of the Bank's equity capital with indicators of financial stability. Based on the study of previously published literature, the authors show the degree of scientific and theoretical development of the problem by both domestic and foreign scientists. Based on the materials of the Kazakhstan’ second-tier banks, was conducted a statistical analysis of the domestic second-tier banks equity capital for 2014-2019. A detailed analysis of the structure, quality and capital adequacy ratios of the banking sector of Kazakhstan for a five-year period was carried out. The article also examines the impact and role of the regulator-the National Bank on the financial stability of the country's banking sector. На сегодняшний день финансовая устойчивость банков остается одной из важных проблем как в научно-теоретическом так и практическом аспекте. В достижении финансовой устойчивости играют роль различные факторы. Важными из которых являются достаточность и качество ссудного портфеля, что также служит индикатором финансовой устойчивости. Исходя из этого в данной статье рассмотрена взаимосвязь собственного капитала банка с показателями финансовой устойчивости. На основании изучения ранее изданной литературы авторы показывают степень научно-теоретической разработанности проблемы как отечественными, так и зарубежными учеными. На материалах банков второго уровня Республики Казахстан проведен статистический анализ собственного капитала отечественных банков второго уровня за 2014-2019 годы. Проведены детальный анализ структуры, качества и рассчитаны коэффициенты достаточности собственного капитала банковского сектора Казахстана за пятилетний период. В статье также рассматривается влияние и роль регулятора – Национального Банка на финансовую стабильность банковского сектора страны. На основе анализа литературы и практической ситуации обосновываются задачи и перспективы деятельности банков по стабилизации финансового состояния и повышению качества собственного капитала. Авторы также проводят аналитический обзор текущей ситуации в банковском секторе в целом, деятельности Национального банка по повышению финансовой устойчивости банковского сектора и результатов оценки качества активов.

scholarly journals The Role of Banks and Stock Market in the German Economy

2019 ◽  
Vol 12 (4) ◽  
pp. 93-108
Author(s):  
B. E. Zaritskiy
Keyword(s):  
Stock Market ◽  
Banking Sector ◽  
German Economy ◽  
Banking System ◽  
Capital Adequacy ◽  
Stock Exchanges ◽  
Federal Republic Of Germany ◽  
Banking Institutions ◽  
German Stock

Relevance. The purpose of this article is to analyse particular features of the modern situation in of the banking and stock market sectors of the Federal Republic of Germany. Some of the topical characteristics of the development of the German banking system during the last years are as follows: The restructuration of the Lands Banks, which was in the centre of the financial crisis of 2008–09; Continuing attempts to reorganise the Deutsche Bank which was and is in continued failure of profits; The decrease in inter-banking credits on the background of expected abandonment of the policy of “quantitative easing”. On the other hand, following a series of unlucky attempts by Deutsche Boerse to establish an alliance with the largest World’s Stock Exchanges, Frankfurt hope to get even with London and become European “financial capital” after Brexit completed.Methods. By analysis of publications edited by EU, ECB, Bundesbank, related German agencies, and also books and articles written by Russian and foreign authors this text demonstrates the changes within the structure of the German banking sector and the strong and weak aspects of the stock market of this country. The author used system’s approach and historical and statistical methods to allow the making of a holistic analysis of the selected topic in its development, as well as ranging statistical data properly and drawing up some conclusions regarding the eventual scenario of further development.Results. This research provided a background for the conclusion that the world financial and economic crisis of 2008–09 has more strongly affected the German banking sector than in former considerations. The leading banking institutions of the country such as Deutsche Bank and Commerzbank are in a hard financial situation. Relatively limited capital adequacy and low level of profitability of the majority of German banks represent important limits for its international activities. Meanwhile, the German stock market remains underdeveloped and therefore plays a subordinated role in financing companies.Prospects. The outcomes of this research could be useful for the assessment of long-term perspectives of the socioeconomic and innovative development of Germany which remains the biggest economy of the EU.

CURRENT TRENDS IN THE BANKING CREDIT MARKET OF UKRAINE

InterConf ◽  
2021 ◽  
pp. 29-36
Author(s):  
Lidiia Avramchuk ◽  
Oleksii Muravskyi
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Foreign Currency ◽  
Credit Market ◽  
Current Trends ◽  
Loan Portfolios ◽  
Banking Institutions ◽  
Banking Credit

In recent years, the banking sector of Ukraine has witnessed low lending standards and insufficient protection of creditors' rights. In addition, there were two crises in the country and, as a result, borrowers were unable to repay funds in time. At the same time the quality of loan portfolios deteriorated, therefore more than 50% of all loans became "problematic". Due to the increase in interest rates, most borrowers began to take loans for up to 3 years and in the national currency, because they are less risky. According to statistics, only about 25% of all loans are long-term. In order to encourage borrowers to take long-term loans and borrowings in foreign currency, banking institutions have reduced interest rates on these types of loans, but these actions have given only a slight increase in such loans.

scholarly journals ВОПРОСЫ ОЗДОРОВЛЕНИЯ БАНКОВСКОГО СЕКТОРА КАЗАХСТАНА

2019 ◽  
pp. 17-20
Author(s):  
Н. А. Гумар ◽  
Г. К. Жанибекова
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Stability ◽  
Stress Testing ◽  
Banking Sector ◽  
Rehabilitation Program ◽  
Wide Range ◽  
National Bank

Monetary policy is affected by a slowdown in economic growth. In the formation of financial stability cannot do without measures to improve the banking sector.Obviously, the accumulation of risks in this area is fraught with the inability of the banking sector to show resilience to external shocks.The banking sector rehabilitation program in Kazakhstan is a wide range of activities, including the assessment of the quality of banks 'assets, so-called stress testing, and support for SLBs from the resources of the National Bank, provided that they are capitalized by second-level banks' shareholders.The main directions of the Program are: increasing the financial stability of the system-forming bank; Increasing financial stability of large STBs and change the regulatory and supervisory environment to improve the financial stability of the banking sector.

scholarly journals Crisis risk in the 21st century and their impact on the banking sector

2020 ◽  
Vol 8 (2) ◽  
pp. 31-38
Author(s):  
Tamara Vesić ◽  
Jovan Petronijević ◽  
Nenad Ravić
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Capital Adequacy ◽  
The Other ◽  
Business Research ◽  
Work From Home ◽  
The World ◽  
National Bank ◽  
The Republic ◽  
Electronic Delivery

Just over a decade after the outbreak of the global economic crisis in 2008, the world is once again facing a global crisis caused by the Covid-19 virus pandemic. The paper compares the effects of the crisis on the banking sector with special reference to the measures of the National Bank of Serbia that were implemented in order to preserve financial stability in the Republic of Serbia. It was concluded that the Serbian banking sector has consistently submitted to the moratorium introduced by the NBS, most likely as a consequence of high liquidity and capital adequacy in previous periods. On the other hand, due to the corona virus pandemic, many factories have stopped producing gold, the transport of goods is functioning slowly, which has led to a shortage of gold, so it is almost impossible to buy a gold ducat or gold bar in Europe. As a result, the jump in demand consequently affected the increase in the value of gold. Although bankers quickly adapted to work from home and electronic delivery of services to end users, what is a fact is that in the future we will certainly face new financial shocks, so one of the goals of the work is to create foundations and recommendations for further business research in risky situations.

scholarly journals Determinants of Polish financial stability in 2017-2018

2019 ◽  
Vol 30 (2) ◽  
pp. 5-19
Author(s):  
Kinga Górska ◽  
Karolina Krzemińska
Keyword(s):  
Financial Markets ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial System ◽  
National Bank ◽  
The Stability

This article seeks to present the essentials of financial stability and to analyse and evaluate selected determinants of stability Poland’s financial system in the years 2017–2018. The study comprises exemplary ratios or indicators that are used in measuring the stability of a financial system. The proposed analysis is confined to selected groups of stability ratios/indicators that are pertinent to the macroeconomic situation, the situation in financial markets, and the situation of the banking sector. The analysis is based upon the data and statistics provided in the reports of the National Bank of Poland, available by 31st November 2018.

Maintaining Financial Stability in the Banking Sector

2019 ◽  
pp. 30-48
Author(s):  
Meltem Gurunlu
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Basel Accords ◽  
Risk Management System ◽  
Strategic Approach ◽  
Global World

Maintaining financial stability in the banking sector through a well-functioning risk management system is a strategic approach in today's global world where the risks have become much more diversified than ever. This chapter was undertaken in order to investigate the risk management topic by focusing on the experiences learned from the banking crises up-to-date and implications of the Basel Accords which outlined capital adequacy standards to prevent such crises. With paying special attention to the case of Turkish banking system, main challenges and possible solutions are also discussed.

scholarly journals ANALISIS SOLVABILITAS PERBANKAN SYARIAH DI INDONESIA PERIODE 2001 – 2004

IQTISHODUNA ◽  
2011 ◽  
Vol 2 (2) ◽  
Author(s):  
Indah Yuliana, SE., MM.,
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Ratio Analysis ◽  
Descriptive Research ◽  
Religious Rituals ◽  
Bank Management ◽  
Analysis Technique ◽  
Accounting Report ◽  
Conventional Banks

The birth of ‘Syariah Bank’ in Indonesia is really hoped by the Indonesians (especially the Moslems) who think that the interest of the bank       is forbidden in Islam. However actually sharing principle in the accounting institution has been known well both in Islamic and non-Islamic countries. ‘Syariah Bank’ is not related with religious rituals (Islam) but it is about a sharing concept in business between the owner of the capital and the capital manager. Bank management with syariah principle can be accessed and managed by all societies and not only by the Moslems. However, it is not debatable that nowadays in Indonesia ‘Syariah Bank’ is developing within the Islamic societies. From this aspect, the opportunity to develop ‘Syariah Bank’ in Indonesia is big enough, as Indonesia is a country having the biggest Moslem followers. ‘Syariah bank’ as an accounting intermediary institution is hoped to be able to give a better performance than the conventional banks. The goodness and the badness of the ‘Syariah Bank’ can be known from its performance reflected from the accounting report. But the accounting report   on the Syariah Banking sector is to provide an information related to the accounting position, performance and also accounting position, and bank activities that will be useful for the decision making.This research aims to describe the solvability ability of Syariah Bank in Indonesia based on the banking ratio analysis technique. This is a descriptive research and the population of this research is the Syariah Bank that has been doing IPO in BEJ.  The result of the research shows:First, CAR ability from 2001 to 2004 its value is above the determined standard from BI. the CAR that is far above the standard shows that the bank has not used the capital maximally. This can be caused by the bank’s doubt to distribute its capital to the risk ‘assets (aktiva)’. Second, debt to equity from 2001 to 2004 gets increased. It shows that the number of debt year by year gets increased. Third, long term debt to equity from 2001 to 2003 whose values at the syariah banking industry is the smallest   is ‘Syariah Mandiri Bank’. While, in 2004 it is ‘Indonesian Muamalat Bank’. It means ‘Syariah Mandiri Bank’ and ‘Indonesian Muamalat Bank’ are the banks which its long term debt composition is under the industrial average, so that the smaller the long term debt to equity ration, the smaller the bank ‘assets (aktiva)’ financed by the long term debt.

scholarly journals A Study of Non Performing Advances and It’s Management With Special Reference to Punjab National Bank

2021 ◽  
pp. 507-512
Author(s):  
Dr. Martha Sharma
Keyword(s):  
Banking Sector ◽  
Negative Impact ◽  
Capital Adequacy ◽  
Reserve Bank ◽  
Capital Adequacy Ratio ◽  
National Bank ◽  
Performance Area ◽  
Definition Of ◽  
Reserve Bank Of India

Banking industry plays an important role in the development of an economy. Banks have become very cautious in extending loans. The reason being mounting non-performing assets (NPAs). NPAs put negative impact on the profitability, capital adequacy ratio and credibility of banks. It is defined as a loan asset, which has ceased to generate any income for a bank whether in the form of interest or principal repayment. As per the prudential norms suggested by the Reserve Bank of India (RBI), a bank cannot book interest on an NPA on accrual basis. In other words, such interests can be booked only when it has been actually received. Therefore, this has become what is called as a ‘critical performance area’ of the banking sector as the level of NPAs affects the profitability of a bank. This paper touches upon the meaning and consequently the definition of a non-Performing asset, the conceptual framework of non-performing assets, classification of loan assets and provisions. The study also evaluates the adverse effect of non-performing assets on the return on total assets of Punjab National Bank Limited for the period 2013 to 2015, 2016-17, and 2019-20. Particularly discussing some remedial measures taken up by the Bank to overcome this situation of NPA.

scholarly journals Operational control over the financial stability of banking

2020 ◽  
Vol 15 (1) ◽  
pp. 51-58
Author(s):  
Angela Kuznetsova ◽  
Borys Samorodov ◽  
Galyna Azarenkova ◽  
Kateryna Oryekhova ◽  
Maksym Babenko
Keyword(s):  
Credit Risk ◽  
Financial Stability ◽  
Control Charts ◽  
Banking System ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Operational Control ◽  
Regulatory Capital ◽  
Control Value ◽  
Banking Institutions

Maintaining proper financial stability of each banking institution is one of the main tasks facing the banking system of Ukraine. This enables operational control over the financial strength of banking activities.The purpose of the article is to develop recommendations on the operational control of financial stability of banking and to test them using banking institutions in Ukraine as an example.To execute operational control over the financial stability of banking, economic standards of banking regulation are grouped under the “at least” or “not exceeding” principle. To determine their change over time, Shewhart control charts are proposed.The recommendations were tested through the example of the Ukrainian banking institutions (with state, foreign and private capital). It was found out that in 2017–2019, the following three economic standards of banking regulations were not met: regulatory capital adequacy, high credit risk, and average investments; besides, there were two standards at the limit of control value: the ratio of regulatory capital to total assets and the maximum amount of credit risk per counterparty.To improve the financial status of banking institutions, it is recommended to take organizational and financial measures to change the average value of the relevant economic standards for banking regulation to a level that ensures financial stability.

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