scholarly journals DYNAMICS OF MAIN INDICATORS OF THE CANADIAN BANKING SYSTEM

2020 ◽  
Vol 6 (3) ◽  
pp. 136-142
Author(s):  
Maryna Korol
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Practical Significance ◽  
Loan Portfolio ◽  
The World ◽  
The Stability ◽  
Canadian Banking

Relevance of research. During the global financial collapse of 2008–2009, Canadian banks demonstrated stability and vastly avoided the international crisis. There was a view that Canada’s banking system was strict and overly risk-oriented, but after the crisis, it was recognized as logical in terms of lending, which required careful government supervision and regulation based on the principles of security and reliability. In fact, the World Economic Forum recognizes Canadian banks as the most stable in the world. So, all mentioned above prompted us to study the dynamics of the main indicators of the Canadian banking system. The aim of the study is to summarize and characterize the existing trends of banking system evolution in Canada. Methodological basis of the study is based on the analysis of the study of the Canadian banking system according to the indicators of the number of banking institutions, their profitability / loss, the quality of the loan portfolio and analysis of the largest banks in the country. A systemic analysis of the quantitative and qualitative composition of the above-mentioned banking indicators, synthesis and generalization were used to generalize and formulate conclusions. Scientific results. This article is devoted to the study of the dynamics of the main indicators of the Canadian banking system during the period from 2000 to 2019 inclusively. It is argued that the number of commercial banks has had a positive dynamics during the analyzed period, even the period of the global financial crisis of 2008-2009 has not reduced their number, which indicates the stability and prudent policy of commercial banks and the Central Bank as a whole. It has been established that 2019 is the year of the historical maximum assets of the Canadian banking system (more than 277% of Canada’s GDP). It is shown that the assets of eight largest banks in Canada account for 91% of the total assets of the banking sector. A record decline in the bank’s profits was recorded in 2009. The quality of the loan portfolio of commercial banks in Canada since 2009 shows a significant decrease in the share of outstanding loans. The practical significance of the study is to rate the strengths and weaknesses of the Canadian banking system. Significance / originality. The results achieved form an integrated view of the functioning of the Canadian banking system. The following studies will focus on methods and models for verifying the stability of banking systems, including the Canadian banking system.

scholarly journals COMPETITION OF TRANSNATIONAL BANKS: MAIN TRENDS AND WAYS OF DEVELOPMENT

2021 ◽  
pp. 151-157
Author(s):  
Надежда Константиновна Савельева ◽  
Татьяна Алексеевна Тимкина
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Competitive Advantages ◽  
International Banking ◽  
Statistical Research ◽  
Cross Border ◽  
The World ◽  
Financial Transactions ◽  
Level Analysis

Статья посвящена проблемам сохранения конкурентных преимуществ коммерческих банков для осуществления финансовых операций на трансграничных рынках. Целью исследования является анализ основных тенденций развития деятельности транснациональных банков в условиях глобализации. Объектом исследования являются мировые лидеры международной банковской сферы. Научная новизна заключается в разработке основных направлений развития банковской системы на международном уровне, результатах анализа опыта лидирующих транснациональных банковских компаний в условиях пандемии The article is devoted to the problems of maintaining the competitive advantages of commercial banks for the implementation of financial transactions in cross-border markets. The aim of the study is to analyze the main trends in the development of the work of transnational banks in the context of globalization. The object of research is the world leaders of the international banking sector. In the process of research, the authors have analyzed theoretical and practical material used in general methods of scientific knowledge and statistical research. Scientific novelty lies in the development of the main directions for the development of the banking system at the international level, analysis of the experience of leading transnational banking companies in the context of a pandemic.

MODELING THE INFLUENCE OF THE STRUCTURE AND QUALITY OF ASSETS ON THE PROFITABILITY OF A COMMERCIAL BANK

2021 ◽  
pp. 10-18
Author(s):  
Alena S. Kudriavtseva ◽  
Olga G. Arkadeva
Keyword(s):  
Economic Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Factors Affecting ◽  
Correlation And Regression Analysis ◽  
The Stability ◽  
Classical Economic ◽  
Sound Management

In modern conditions, the methods of classical economic analysis are not enough to solve the problem of bank stability. This requires the development of methods and tools to analyze the current situation in the bank and to develop sound management decisions aimed at ensuring the stability of the bank. The article notes that the analysis of the influence of the structure and quality of assets on the profitability of commercial banks is an important step for assessing the financial position and reliability of a bank, and a method is proposed for constructing a model of the dependence of bank’s profitability on the factors that determine it. The scientific sources were the works of Russian and foreign researchers in the field of modeling and characteristics of the banking system, financial stability of credit institutions, assessment of the creditworthiness of potential borrowers, system organization and information technology. The article uses the methods of economic analysis, differential calculus and mathematical statistics, as well as the achievements of the main scientific schools dealing with the problems of economic and mathematical modeling and economic analysis of banking. In order to determine the most significant economic factors affecting the profitability of commercial banks, generalization of the theoretical, methodological and applied aspects of studies devoted to the study of the influence of the structure and quality of assets on the profitability of commercial banks was carried out, and a correlation and regression analysis was made. The model presented in the article can be used to predict changes in the profitability of Russian commercial banks and to predict promising directions for growth in profit and profitability of the bank.

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 Procesy koncentracji w polskim sektorze bankowym

2004 ◽  
pp. 69-87
Author(s):  
Elżbieta Kacperska ◽  
Jakub Kraciuk
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Financial Sector ◽  
Foreign Banks ◽  
Financial Policy ◽  
Foreign Investors ◽  
Banking Sector Development ◽  
The World ◽  
Set Up

The financial sector presents the strongest tendency towards capital concentration, what is the effect of its deregulation, liberalization and strong competitiveness. Fusions and foreign investors, who are taking banks over, are accomplishing this concentration. From the beginning of 1993 until the first quarter of 2004, the number of active commercial banks decreased from 87 to 59 and 27 fusions and assumptions were noticed. At the beginning of 2004 foreign investors controlled 46 commercial banks out of 59 operating in Poland. The value of their investments exceeded 7 .2 billions PLN and they owned 76.3% of equity and supplementary funds and 67.4% of assets. Owing to these investments, the banking sector development has started and the investors subsidised existing banks, improved infrastructure and made many innovations. The large foreign banks, which were set up as a result of concentration, made banking system more effective and facilitated development of national economy. On the other hand, the superior contribution of large foreign banks obstructs national financial policy and makes the financial sector sensitive to prosperity fluctuations and a crisis of the world banking system.

scholarly journals The role of capital adequacy standards in creating financial safety of the bank: the evaluation and analysis of the survey results

2021 ◽  
Vol 20 (3) ◽  
pp. 641-657
Author(s):  
Irena Pyka ◽  
Aleksandra Nocoń ◽  
Mateusz Muszyński
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Conducting Research ◽  
The Global Financial Crisis ◽  
Credit Institutions

Motivation: After the global financial crisis, banks’ financial safety has been considered as a public good and put under closer control and supervision. The prudential regulations of credit institutions which are the main subject of the study, have been significantly tightened. Although the minimum level of banks’ own funds, set adequately to the risk, had been a fundamental indicator of banks’ financial safety since the end of 1980s, after the global financial crisis the quality of this capital has changed and the scope of its regulation has been increased. By respecting the new prudential standards of the Basel Committee on Banking Supervision at the international level, financial safety of the banks has been additionally put under the macro-supervision. The concern about the overregulation of the banking system raises many controversies, what justifies conducting research on this subject. Aim: The main purpose of the article is to identify changes in the bank’s strategies of creating financial safety after the global financial crisis, considering macro- and micro-prudential regulations, aimed at strengthening the level and quality of bank capital, based on the results of the conducted research. Results: The results of the empirical research indicate that there is a strong belief among management staff in commercial banks in Poland that the increase in the level and structure of the own funds in credit institutions rises their financial safety. The results confirm the intensification of the process of implementing Basel regulations in commercial banks in Poland.

Assessing the Inter Bank Disparity in Non-Performing Assets (NPAs) Management in Indian Public Sector Banks

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 49-59
Author(s):  
Dhananjaya K. ◽  
Krishna Raj
Keyword(s):  
Public Sector ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Public Sector Banks ◽  
Recovery Mechanisms ◽  
The Stability ◽  
The Global Financial Crisis

In a bank-dominated financial system like India, the strength of the overall financial system or financial stability highly depends on the soundness of banks. Indian Banking system proved to be strong and resilient during the global financial crisis of 2008. But of late, there has been increased concerns about the continued deterioration in the stability of the banking sector. Financial stability report of RBI confesses to the fact that the risks to Indian banking sector have been increasing in the post-recession period particularly the risk of accumulating NPAs. This study attempts to analyse the trend in profitability, NPAs, and the effectiveness of recovery mechanisms and interbank disparity in NPA management with respect to public sector banks. We found that the profitability of public sector banks is declining in the post-crisis period and the amount of NPA has been on the rise. Further, the recovery mechanisms have proved to be ineffective in containing the problem of bad debts.

scholarly journals Modeling of credit portfolio management efficiency

2021 ◽  
Vol 70 (3) ◽  
pp. 89-101
Author(s):  
N. Ostrovska
Keyword(s):  
Portfolio Management ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Estimation Methods ◽  
Loan Portfolio ◽  
Credit Risks ◽  
Economic Entity ◽  
The World ◽  
The Relationship

Credit operations, among the great variety of services provided by the bank, are one of the most important activities. In the assets of commercial banks, loans occupy a strong position of the most extensional and profitable items. The reliability and financial stability of commercial banks depends on the composition and structure of the bank's loan portfolio and the process of its management. Under current conditions, the development and improvement of the bank's loan portfolio management system intended to minimize the credit risks and ensure the sustainable operation of commercial banks have become particularly important. Crisis phenomena in economy have proved that the activities of any economic entity is associated with uncertainty in market development. Adverse developments in the world markets directly affected the solvency of borrowers of many banks. The increase in defaults of most borrowers resulted in the increase in defaults on loans, causing the increase in overdue debt, lower profitability and liquidity problems in banks. Thus, the recent crisis in the world economy, including Ukrainian economy, has demonstrated the failure of the methods used to assess and manage credit risk in banking, as well as the imperfection of the methods used to manage the loan portfolios of commercial banks. The results of the previous carried out investigation indicate that in order to form the correct management decisions and take practical actions concerning the formation of loan portfolio for commercial bank, it is necessary to assess its status. In this regard, the method of econometric modeling (determination of the relationship between gross domestic product and overdue debt of the banking system in Ukraine, the relationship between the volume of loans issued by banks and the discount rate; the relationship between the volume of loans issued to individuals and the volume of the loan portfolio in general) is differentiated in this paper from other estimation methods. This method made it possible to determine the effectiveness of loan portfolio management of commercial banks. The results of the calculations provide reasons to confirm that there is insignificant relationship between the level of loans to individuals and the loan portfolio.

scholarly journals Development of Commercial Banks during Pre and Post Globalization Era in India: An Analysis

2019 ◽  
Vol 7 (1) ◽  
pp. 26-34
Author(s):  
U Yuvaraja ◽  
B Gururaja ◽  
K Sampreetha
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Secondary Data ◽  
Poor Performance ◽  
Central Banking ◽  
Indian Society ◽  
Indian Banks ◽  
The Stability ◽  
Central Pillar

Banking is an old business and a central pillar of Indian society. Money lending activities in India had traced back to the Vedic period (according to Central Banking Enquiry Committee-1931). The professional banking system existed long ago- Manu Murthy, Kautilya’s Arthashastra- in India. Initial stage growth of Indian banks was very sluggish and also experienced episodic failure between 1913 and 1948. The banking sector in the pre-reform period was experienced poor performance and caught into deep crisis due to excessive loans in comparison to total deposits having a ratio more than 50 per cent consisting of about 90 per cent of all commercial banks which posed a significant threat to the stability and transparency of the financial system. During those days, the public had lesser confidence in the banks. Government at this juncture decided to introduce comprehensive economic reforms. Environmental and regulatory changes have made this sector more competitive and improved the health of the Indian banking sector. The study's main purpose is to analyse the growth of India scheduled commercial banks during pre and post-globalisation period in three phases viz., a)Early Phase of growth of the CBS: 1936-1969, b) Period of Social Control:1967 -1991 and c)Phase of Globalization:1991-2018. The present study is based on, purely, secondary data.

scholarly journals Assessment of Competitiveness Factors of an Agent of the Financial Environment: Methodology and Comparative Analysis

2021 ◽  
Vol 110 ◽  
pp. 01006
Author(s):  
Elvira Sitnikova ◽  
Tatyana Kolmykova ◽  
Irina Tretyakova ◽  
Darya Lobacheva
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Capital Intensity ◽  
Loan Portfolio ◽  
The Public ◽  
Current Trends ◽  
The World ◽  
Banking Institutions ◽  
European Economies

The functioning of the banking sector of the economy in the world is characterized by a decrease in its capital intensity due to a decrease in the concentration of foreign capital, a deterioration in the quality of the loan portfolio, an outflow of urgent deposit resources and the receipt of significant losses by banking institutions during the COVID-19 pandemic. Taking into account the current trends in the spread of the virus, the development and implementation of fundamentally new approaches to anti-crisis management in the banking sector of both the world economy and Russia is of great importance today. The COVID-19 pandemic came as a big shock to the global and European economies. While banks are not hit by the pandemic as directly as other retail institutions, they are in the public eye as they provide funding to corporations and individuals. Their stability is crucial for maintaining the efficiency of the entire economic system, not only of a particular country, but also of the world. Currently, the need for a comprehensive study of the competitiveness of a commercial bank is determined by the objective modern conditions of the life of banks operating in a competitive environment. The article proposes the author’s methodology for assessing the competitiveness of a commercial bank, which includes five groups of indicators, which makes it possible to identify not only problematic, but also stable areas of activity. The proposed method for calculating the integral indicator for assessing the competitiveness of a commercial bank has been tested on the example of Russian Agricultural Bank and Sberbank, and a set of measures has been developed to increase the level of competitiveness of a commercial bank.

scholarly journals Management of Liquidity Risk and the Banking Activity

2019 ◽  
Vol 8 (2) ◽  
pp. 01-08
Author(s):  
Leonora Haliti Rudhani ◽  
Driton Balaj
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Liquidity Risk ◽  
Risk Indicators ◽  
Liquidity Management ◽  
Banking Activity ◽  
The Stability ◽  
High Level

The banking sector in Kosovo continues to have a high level of sustainability and financial stability. Two substantial components for the stability of the banking system appear to be liquidity and liquidity risk. The purpose of this paper is to analyze liquidity management in Kosovo's commercial banks through liquidity risk indicators from 2008 to 2017. By comparing the methodology of the data presented, the study will assess the state of management of the liquidity risk of commercial banks. From 2008 until now, commercial banks in Kosovo have had liquidity reserves at a level higher than the level required by CBK, which means that exposure to liquidity risk was minimal.

Sign in / Sign up

Export Citation Format

Share Document