scholarly journals Anti-crisis management of the bank in the conditions of financial market instability

2021 ◽  
Vol 2 (99) ◽  
pp. 40-49
Author(s):  
O. O. Drahan ◽  
I. O. Herasymenko ◽  
N. O. Verniuk
Keyword(s):  
Crisis Management ◽  
Financial Market ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Bank Management ◽  
The Past ◽  
Financial Condition ◽  
Market Instability ◽  
Domestic Banks

The aggravation of problems in the banking system is generally associated with the deterioration of the financial condition of some banks under the COVID-19 pandemic, military aggression in eastern Ukraine and the need to introduce anti-crisis management. The lack of timely and effective crisis management has led to the liquidation of more than forty commercial banks over the past five years. The need for crisis management by domestic banks is exacerbated by the instability of the financial market and requires a review of views on the essence of crisis management. The purpose of the article is to develop theoretical provisions for crisis management in conditions of financial market instability. The theoretical and methodological basis of the study were the scientific works of domestic and foreign scientists. Scientists most often associate anti-crisis bank management with the banking crisis, that is, the state of the entire banking system, and at the same time level other destructive factors. The set of commercial banks that received a net loss was determined: A critical analysis of the definitions of domestic scientists, the concept of "anti-crisis management of the bank" and identified the following groups of approaches: as a process of identifying, preventing and overcoming crisis phenomena; as a process aimed at identifying and preventing crisis situations; as measures taken during the crisis; as measures to rehabilitate the bank; as measures to increase the solvency of the bank; as a component of the bank's financial stability management; as a component of achieving the effective functioning of the bank; as a system for counteracting the bankruptcy of the bank. It is proposed to understand the essence of the category "anti-crisis management of the bank" as a special type of management, interpreted in a narrow and broad sense with the need for specific types and management methods and carried out to diagnose, prevent, neutralize and overcome crisis phenomena, including financial instability market.

scholarly journals FINANCIAL STABILITY OF A BANK - FACTOR OF STABILITY OF BANKING SYSTEM

2018 ◽  
pp. 5-11
Author(s):  
Andrii Ramskyi ◽  
Inna Budnichenko
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Development Program ◽  
Financial Sustainability ◽  
Internal Factors ◽  
Financial Condition ◽  
Stage Of Development ◽  
Banking Institutions ◽  
The Stability

The article is devoted to the analysis of the financial stability of Ukrainian banks at the present stage of development and the identification of the main factors of influence that are associated with it. The main tendencies of development of the banking system of Ukraine are considered. The present state of the banking system of Ukraine is determined. Financial stability plays a significant role in planning the activities of commercial banks. In general, its indicators reflect the level of riskiness of the functioning of the entity of the banking system. Managing financial sustainability has a significant impact on the functioning of banks. That is why it is necessary to create special control departments in banking institutions. The research of financial stability of banks is based on financial sustainability indicators developed and used by the IMF and the World Bank as the basis for the "Integrated Financial Sector Development Program until 2020". The necessity of applying different methods for evaluating the financial stability of commercial banks has been established in order to identify a wider range of problems related to the efficiency of the functioning of the banking system. The description of  two main groups of factors, under the influence of which the financial stability of banks  undergoes changes, is presented. It was revealed that external factors have a more significant impact on the financial stability of a bank. In particular, the factors of mega environment have become more important when banks enter the international financial space. Internal factors lie mostly in the management plane, and it is just the inefficient management of the bank that leads to the disruption of its stable financial condition. Specific features of management of financial stability and methods of its evaluation are considered. The analysis of economic standards of the banking system of Ukraine is carried out. The measures are proposed to minimize the risks and maintain the stability of banking institutions at the required level for normal functioning in modern conditions. It has been proved that providing, supporting, analyzing and evaluating the financial stability of commercial banks is a driving force in the development of the banking system, and hence the entire Ukrainian economy.

ANTI-CRISIS MANAGEMENT OF THE ENTERPRISE AS A MEANS OF BANKRUPTCY PROTECTION OF THE ENTERPRISE

2019 ◽  
Vol 4 (3) ◽  
pp. 181-187
Author(s):  
Nadiya REZNIK ◽  
Vitalii KOSTYLIANU
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Banking System ◽  
Enterprise Management ◽  
Main Task ◽  
Negative Consequences ◽  
Economic Sectors ◽  
Business Executives ◽  
Financial Condition ◽  
Investment Capital

The functioning of most medium-sized, small and large enterprises in today's realities remains at a low level of professionalism. Many business executives do not pay enough attention to analytical work, do not develop new strategies and do not improve the proposal related to crisis management. Only the enterprise management of the adequate level of qualification can avoid all the negative consequences of the crisis. The main task of enterprises is to comply with the requirements of the enterprise anti-crisis policy, namely the calculation of financial ratios that reflect its financial stability. The coefficients allow to consider the company from different sides, among which the most important in the implementation of anti-crisis management are: the efficiency of current assets using, own and borrowed funds, using of production potential, effective management in the enterprise, the dynamics of production and sales of products, depreciation of fixed assets, using of investment capital. In addition to monitoring indicators, crisis management involves identifying problem areas in the enterprise and developing measures to eliminate them. The final part of the enterprise's anti-crisis policy is the implementation of these measures, which prevents the bankruptcy of the enterprise at the stage of possible threats and problems. Unfortunately, modern entrepreneurs neglect this measure and therefore find themselves in a difficult financial and managerial situation. Another issue of crisis management is the issue of securities, which allows to raise additional funds used by the enterprise as a means of eliminating possible bankruptcy. This process is a means of lending in today's realities that is more effective than loans made through the banking system. In today's market economy, business development is the driving force, so we believe that the topic of crisis management is relevant, because such measures are developing enterprises, which in turn develops the economic sectors and the country's economy. Keywords: crisis management, crisis, bankruptcy, financial instruments, enterprise management, analysis of financial condition.

scholarly journals Efficiency of Commercial Banking in Developing Countries

Mathematics ◽  
2021 ◽  
Vol 9 (14) ◽  
pp. 1597
Author(s):  
Violeta Cvetkoska ◽  
Katerina Fotova Čiković ◽  
Marija Tasheva
Keyword(s):  
Developing Countries ◽  
Commercial Banks ◽  
Feasible Solution ◽  
Banking System ◽  
Efficiency Score ◽  
Commercial Banking ◽  
Real Situation ◽  
Super Efficiency ◽  
Bank Management ◽  
The Stability

The aim of this paper is to evaluate the relative efficiency of commercial banks in three developing countries in Europe (North Macedonia, Serbia, and Croatia) in the period from 2015 to 2019, and to provide targets for improvement for the inefficient banks by using DEA. The variables are selected under the income-based approach. Based on the output-oriented BCC model, unusual results are obtained for a few commercial banks in each country, that is, they are BCC relative efficient, which is contrary to the real situation. In order to identify outliers that can affect the efficiency results, a super-efficiency procedure is applied so that banks with a super-efficiency score higher than 1.2 (outliers) or for which a feasible solution was not found are considered in detail and removed, and then the output-oriented BCC model is rerun. Based on the obtained results, the Macedonian commercial banking system shows the highest efficiency (91.1%), followed by the Croatian (90.9%) and the Serbian (81.9%) banking system. The estimated targets for improvement of the inefficient commercial banks could help their top bank management in better resource allocation and making fact-based and faster decisions by which they can improve the operation of the banks they lead and contribute to the stability of the financial system.

scholarly journals Commitments of commercial bank management

2019 ◽  
pp. 21-24
Author(s):  
Olena POLOVA ◽  
Hanna BALALAIEVA
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Common Source ◽  
Resource Base ◽  
Future Directions ◽  
Bank Management ◽  
Liability Management ◽  
Commercial Bank Management ◽  
The Interest Rate ◽  
Banking Institution

One of the basic problems of the banking system is the resource providing for the bank activities, and so the question of the resource potential management of the institution is actual today. The article deals with the economic essence and structure of the liabilities of commercial banks. A review of the specific features of banking and bank management defines the goal in the liability management. The dynamics of the resource base of Ukrainian banks. The article deals with the overall analysis of management problems for involved and borrowed resources of banks. Attention is concentrated on factors of banks' resources. Summarizes the main methods of deposit liability management. Considers the features of the borrowed resources management. Defines the main parameters of the resource base formation. Proposed future directions of research in the field of the liabilities management . The purpose of the study is to determine the peculiarities of managing the obligations of commercial banks and improve the methodology of this process. In the course of the study, attention was drawn to the process of forming a commercial bank's resource base, where two main management parameters need to be considered - the value of borrowed and borrowed funds and their volume. The most common source of formation of bank resources is customer deposits. The need to attract non-deposit resources arises in the event of a lack of current liquidity or as a result of an attempt to balance payment flows at subsequent dates. Further research should be directed to substantiate the methods, instruments and instruments of deposit and non-deposit policy, which will provide not only sufficient capital but also a high rating of a banking institution. It is determined that price and non-price management methods are used to provide the desired structure, volume and level of expenses on deposit liabilities. The essence of pricing methods is to use the interest rate on deposits as the main lever in the competition for free cash of individuals and legal entities. Raising the bid offered by the bank makes it possible to attract additional resources.

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.

Improvement of Premium Banking Services: The Need and the Potential

2021 ◽  
pp. 158-176
Author(s):  
Tatiana V. Schastnaya ◽  
◽  
Arina V. Horoshilova ◽  
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Banking System ◽  
Quality Parameters ◽  
Economic Interests ◽  
Banking Services ◽  
Balanced Development ◽  
Real Value ◽  
Financial Awareness ◽  
Market Premium

The need for a transition to an intensive and innovative development path is overdue in the banking system of Russia. The quality parameters of the premium banking service program for top-5 banks were analyzed. Factors of interest to the banks and their clients were identified. Suggestions on possible ways to improve premium banking programs were formulated. For the analysis, the authors selected banks with the most interesting bonus programs. The contextual analysis of the qualitative parameters of the premium banking programs allowed identifying these programs’ important components and possible problems. These are: the digitalization of banking services, which actively penetrates the segment of the wealthy client; lower business margins; search for the real value of a premium service for the customer. In the authors’ opinion, the most urgent problem is the combination of trends in the digitalization of the banking services and the needs of individualization of the approach to servicing a premium client. The main directions for improving premium banking programs were formulated. They are associated with improving the skills of the program staff; searching for new additional offers and organizing operational feedback for this; expanding the line of financial products offered to premium customers, for example, investment and insurance products, legal services. Premium banking provides a premium client with a special status in terms of service individualization, involves working with target segments, and offers bonus programs of banking products and services aimed at specific target audiences. Therefore, premium banking encourages the bank to identify and differentiate different target groups (audiences) by income level, investment goals, etc.; to conduct events (training seminars, conferences, presentations) to attract individuals to the financial market. Premium banking provides a balance between the economic interests of the company, the financial market and the banking system, commercial banks and individuals. Therefore, the task of developing this segment of the banking services market becomes relevant, meeting the modern needs of the economy. Primarily, the introduction and improvement of premium banking are beneficial to commercial banks themselves, as it increases their level of competitiveness, contributes to the formation of customer loyalty, thus allowing for a more complete satisfaction of customer needs in special services. Currently, improvements in premium banking could also contribute to raising the financial awareness of private clients concerning investment opportunities in the financial markets that would provide effective and balanced development of the financial market of Russia.

Determinants of Non-Performing Assets of Commercial Banks in India

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Commercial Banks ◽  
Financial Stability ◽  
Policy Effectiveness ◽  
Credit Growth ◽  
Dynamic Provisioning ◽  
The Past ◽  
Economic Slowdown ◽  
Monetary Policy Effectiveness

Banks’ credit growth continues to decelerate in India due to huge non-performing assets (NPAs) overhangs in banks. Using the panel data methodology, this study empirically analyzed the determinants of NPAs of scheduled commercial banks in India during 2009-2020. Results indicated that the excessive credit growth in the past increased the surge in the current NPAS. The economic slowdown also aggravated loan delinquencies in Indian commercial banks. While higher priority sector lending created higher loan delinquencies, higher banks size and higher profitability reduced it. This study suggested that counter capital buffer, dynamic provisioning and a sound credit appraisal NPA improved the financial stability and monetary policy effectiveness. These findings are useful for policymakers, bankers and other stakeholders to make appropriate strategies to resolve the NPA issue in India.

scholarly journals Investigating the Economic and Financial Damage around Currency Peg Failures

2019 ◽  
Vol 12 (2) ◽  
pp. 92 ◽  
Author(s):  
Colin Ellis ◽  
Emilia Gyoerk
Keyword(s):  
Exchange Rate ◽  
Financial Stability ◽  
Currency Crises ◽  
Exchange Rate Regime ◽  
Banking Crisis ◽  
Banking System ◽  
Economic Damage ◽  
Real Economy ◽  
The Past ◽  
Floating Exchange Rate

The choice and structure of a country’s exchange rate regime has wide implications for the effectiveness and flexibility of monetary policy tools, as well as for economic and financial stability. We examine 21 instances where exchange rate pegs have been abandoned in the past, to gauge the potential economic damage associated with pegs failing. The sample includes major exchange rate shifts over the past thirty years, spanning from the Latin America currency crises of the 1990s to the peg abandonment in Egypt in 2016. Given the close interconnection of banks to the sovereign and the real economy, risks often flow through to, and can also be magnified by, the banking system. We therefore examine the interaction of currency peg abandonment with the occurrence of a banking crisis to investigate the different circumstances and impacts of exchange rate pegs failing. We have found that countries that simultaneously suffered a systemic banking crisis during the period of exchange rate regime shift also experienced significantly greater economic and financial damage following the adoption of a freely floating exchange rate. Nevertheless, regardless of whether there was a banking crisis, countries start showing signs of recovery after the same amount of time once the currency floated.

scholarly journals Chile

2020 ◽  
Vol 20 (160) ◽  
Author(s):  
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Financial Stability ◽  
Settlement System ◽  
Central Counterparties ◽  
Securities Settlement

The BCCh is considering broadening access to its services beyond commercial banks and some Financial Market Infrastructures (FMIs). The services include settlement accounts, intra-day liquidity, standing deposit and lending facilities, and eligibility for ELA. Banks have always had access to these services, while Central Counterparties (CCPs) and the Securities Settlement System (SSS) were granted access to a settlement account in 2009. The BCCh is considering extending its services to various types of Nonbank Financial Institutions (NBFIs) to enable it to more closely manage and mitigate financial stability risks.

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.

Sign in / Sign up

Export Citation Format

Share Document