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 ESTIMATION OF Z-SCORE FOR UKRAINIAN BANKING SYSTEM

10.23856/3003 ◽  
2018 ◽  
Vol 30 (5) ◽  
pp. 43-51
Author(s):  
Bohdan Kyshakevych ◽  
Ivan Klymkovych
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
System Stability ◽  
Z Score ◽  
Macroeconomic Factors ◽  
Explanatory Variables ◽  
Banking Business ◽  
Score Model ◽  
Bank System

The article analyzes the problematic aspects of evaluating the financial stability of banking systems on the basis of the Z-score methodology. The econometric model estimation of Z-score for the Ukrainian banking system was constructed where the following indicators were chosen in role of explanatory variables:  the share of foreign capital in bank system, inflation, change in nominal GDP and share of overdue loans in credit portfolio. We have conducted the analysis of the banking sector in Ukraine on the base of the constructed Z-score model and determined macroeconomic factors that have the most significant impact on the Z-score assessment and banking system stability.  Drawbacks and limitations of the Z-score methodology usage in banking business are discussed.

scholarly journals Topical issues of building a "strong banking system" in interbank competition: analysis and e

2020 ◽  
pp. 140-148
Author(s):  
Н. Хамитхан ◽  
Н.В. Кабашева ◽  
N. Khamithan ◽  
N. Kabashеva
Keyword(s):  
Asset Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Competition Analysis ◽  
Coverage Ratio ◽  
The Republic ◽  
Credit Portfolio ◽  
Legal Entities

Мақалада банк секторының бәсекеге қабілеттілігін және қаржылық тұрақтылығын арттыру мақсатында қажетті талаптарға сәйкес болмауын анықтау мәселесі туындап отыр. Сол себебті, ҚР банк секторы сапалы өнім ұсыну мен қызмет көрсету мақсатында бәсекеге қабілеттілікте «күшті банк жүйесін» құрудағы қаржылық инновациялардың өзгерістерін бағалау үшін Д. Синки "ФОКУС" («ҚАККТ») тұжырымдамасына сүйене отырыпбанк активтерін басқару сапасын арттыру қажеттілігі туындады. Банк активтерін басқару сапасы активтердің өтімділігімен (кредит портфелінің сапасына) тікелей байланысты. Зерттеу объектісі ретінде банк секторының белсенді қызметі таңдалды. Осы зерттеулерді жүргізе отырып, банк секторының кредит портфелінің сапасының құрылымына, заңды және жеке тұлғалардың кредит портфелінің сапасының құрылымына талдау жүргізі отырып, проблемалық несиелердің әр жыл сайынға жағдайына баға берілді. Сондықтан, 90 күннен астам мерзімі өткен берешегі бар қарыздарды ХҚЕС бойынша провизиялармен жабу коэффициентін анықтаумен байланысты болғандықтан мемлекеттің қаржылай қолдаумен проблемалық несиелерді стандартты несиелермен алмастыруға мүмкіндік бере отырып проблемалық несиелерді есептен шығарылғаны атап көрсетілді. Соның ішінде, заңды және жеке тұлғалардың күмәнді және үмітсіз несиелер көлемі талдау арқылы салыстырмалы түрде бағаланып қорытынды берілді. The article raises the problem of determining non-compliance with the requirements necessary to improve the competitiveness and financial stability of the banking sector.In this regard, in order to assess changes in financial innovations in building a "strong banking system" in the competitiveness of the banking sector of the Republic of Kazakhstan in order to provide quality products and services, it became necessary to improve the quality of asset management of the Bank, based on the concept of D. Sinki "FOCUS".The quality of the Bank's asset management is directly related to the liquidity of assets (the quality of the loan portfolio).Activities of the banking sector was selected as the object of the study.After conducting these studies, analyzing the quality structure of the credit portfolio of the banking sector and the quality structure of the credit portfolio of legal entities and individuals, an assessment of each annual state of problem loans is given.Therefore, due to the determination of the provision coverage ratio under IFRS for loans with overdue debts of more than 90 days, with the financial support of the state, problem loans were written off, allowing to replace them with standard loans.In particular, the volume of doubtful and bad loans to legal entities and individuals was analyzed and conclusions were given.

scholarly journals DEVELOPMENT OF A MECHANISM FOR MANAGING THE INCOME OF FINANCIAL AND CREDIT INSTITUTIONS IN THE CONTEXT OF ECONOMIC MODERNIZATION

2021 ◽  
Vol 80 (1) ◽  
pp. 53-58
Author(s):  
G. P. Koptayeva ◽  
◽  
M. Kanabekova ◽  
Ye. Zh. Yertayev ◽  
A. B. Orazbayeva ◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Banking Sector ◽  
High Efficiency ◽  
Banking System ◽  
Economic Security ◽  
Practical Implementation ◽  
The Stability ◽  
Definition Of ◽  
Credit Institutions

The research is caused, firstly, by the need to specify the definition of financial and credit institutions as subjects of the banking sector of Kazakhstan, analyze and evaluate existing approaches to managing their stability in the strategic aspect and identify factors (possible threats and dangers) that lead to loss of financial stability, and, secondly, by the need to develop a mechanism for managing the financial profitability of financial and credit institutions, ensuring their stable position both in the short and long term. To improve the quality of financial management and ensure the profitability of financial and credit institutions, it is necessary to justify and develop a strategy for managing their financial stability. At the same time, it should be borne in mind that even with high efficiency and profitability, insufficient attention to the issues of ensuring the stability and economic security of financial and credit institutions can lead to financial difficulties for them. Taking into account the problems discussed above, the relevance of issues related to improving the stability mechanism of financial and credit institutions has significantly increased, as has the need to find a new methodological apparatus aimed at adapting and studying foreign experience and its practical implementation in the domestic banking system.

scholarly journals SOURCES OF THEORETICAL AND METHODOLOGICAL DIFFERENCES IN THE INTERPRETATION OF THE TERMS "FINANCIAL SYSTEM" AND "FINANCIAL STABILITY"

2019 ◽  
pp. 47-54
Author(s):  
A. Luchenok
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Financial System ◽  
Real Sector ◽  
The Real ◽  
National Bank ◽  
The Republic ◽  
Definition Of

The article considers two interpretations of the terms “financial system” and “financial stability”. It is shown that the definition of this concept by the monetarists pursues departmental goals and is focused on the priority of the interests of the banking sector to the detriment of the real sector of the economy and population. It is concluded that it is necessary to bring the activities of the National Bank in line with the Constitution of the Republic of Belarus, as well as the inexpediency of creating the so-called “mega-regulator” in the country.

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.

scholarly journals INFRASTRUCTURE OF FINANCIAL SYSTEM AND BANKING OPERATIONS OF THE REPUBLIC OF SERBIA

2019 ◽  
Vol 30 (6) ◽  
pp. 1581-1586
Author(s):  
Tatjana Mrvić
Keyword(s):  
Economic Activity ◽  
Financial Stability ◽  
Banking Sector ◽  
Dominant Role ◽  
Banking System ◽  
Financial System ◽  
Cash Flows ◽  
National Economic ◽  
The Republic ◽  
Banking Operations

The Financial system has a very important and specific role in the adequate development of a particular national economy. Its key role is essential for the development of the entire national economic activity, which is reflected in the fact that it forms the basis of all financial or cash flows in it. Within the financial system of the Republic of Serbia, the banking system plays a dominant role, and therefore the operations of banks as depository credit institutions. In order for the banking system to develop steadily with less risky transactions, to be trustworthy, it must meet the conditions of publicity and business transparency and to operate in a rounded and complete infrastructure of the financial system and market. The goal and purpose of this study is to present the tendency of the development of the banking sector and the necessity of forming complete infrastructure within the financial system for banking operations and financial stability of the banking sector.

scholarly journals REGULATION OF THE BANKING SECTOR: PANDEMIC CHALLENGES AND DIGITAL SOLUTIONS

2021 ◽  
Author(s):  
Muslum Mursal Mursalov ◽  
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Banking Regulation ◽  
Regulation System ◽  
Current State ◽  
Banking Activity ◽  
The World ◽  
The Republic ◽  
The Impact

The article analyzes the current state of the world banking system. The main trends in its development in conditions of global instability are distinguished. The role of the coronavirus pandemic as a catalyst for the digital transformation of the banking sector is revealed. The article considers the development of regulatory innovations in the banking sector in the digital economy. The real situation in the field of regulatory activity and its specific features in this sector of the economy of the Republic of Azerbaijan are revealed. Using certain cases, the author shows the emergence of completely new, original forms of banking regulation, which have no analogues in the world practice and are possible due to a complex combination of a number of causes (financial crisis, technological revolution, coronavirus outbreak, etc.). The main directions of the impact of digitalization on the transformation of the process of regulation of banking activity are presented, a comprehensive study of which will allow to develop fundamentally new approaches to its improvement. The feasibility of implementing innovative practical measures to improve the efficiency of the banking regulation system was justified.

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 EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

scholarly journals Too Much Technology and Too Little Regulation? The Spectacular Demise of P2P Lending in China

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ding Chen ◽  
Simon Deakin ◽  
Andrew Johnston ◽  
Boya Wang
Keyword(s):  
Banking Sector ◽  
Central Government ◽  
Focal Point ◽  
Banking System ◽  
Internal Controls ◽  
Banking Activity ◽  
P2p Lending ◽  
Fundamental Uncertainty ◽  
The Government ◽  
Specific Regulation

Abstract In this paper we trace the rapid growth and spectacular demise of online peer to peer lending in China. Drawing on a series of interviews conducted in China in 2017 and 2018, we follow the expansion of the sector from the establishment of the first major platform in 2007, through the introduction of limited regulation in 2015 in response to a series of platform failures to the final de facto closure of the whole sector by the regulator in 2019–20. However, contrary to claims that technology would reduce risk, the new platforms appear to have given rise to new risks by connecting dispersed borrowers and lenders whilst the regulator had decided to leave the sector to evolve without specific regulation. While there were hopes that P2P lending might increase flows of finance to the SMEs that are excluded from the formal banking system, ultimately too much of the activity on the P2P platforms was characterised by what we term ‘transactional ambiguity’ and ‘legal fluidity’: it occurred on the fringes of legality, often amounting to Ponzi schemes, fraud or unlicensed banking activity. In contrast to the banking sector, where their intermediation role ensures that banks are the focal point in the event of borrower default, and conventional moneylending, where moneylenders bear the risk of default, defaults and platform failures in the P2P sector distributed losses far and wide around the country, often to lenders who were not capable of bearing them. Whilst the central government did not formally stand behind the P2P sector (as it does with banks because of the systemic implications of their operations), the government could not help but become involved where P2P lending transmitted losses to lenders who were dispersed around the whole country. Ultimately, central government announced a wholesale reversal of policy that led to the sector effectively being closed down. The episode cautions against overly optimistic claims that technology can eradicate the risks of fraud and fundamental uncertainty inherent in lending, and reminds us that, without appropriate regulation and adequate internal controls, financial institutions will always operate in ways that result in instability.

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