scholarly journals PANDEMIC CRISIS AND ITS EFFECTS ON BULGARIAN BANKING SYSTEM’S EFFICIENCY

2021 ◽  
Author(s):  
Gergana Mihaylova-Borisova ◽  
Keyword(s):  
Growth Rate ◽  
Interest Rates ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Debt Crisis ◽  
Parametric Method ◽  
Banking System ◽  
Data Envelopment ◽  
The Global Financial Crisis

The economies are once again facing the challenges of another crisis related to the spread of coronavirus in 2020. The banking sector, being one of the main intermediaries in the economies, is also affected by the spread of the new crisis, which is different compared to the previous crises such as the global financial crisis in 2008 and the European debt crisis in 2012-2013. Still, the banking sector in Bulgaria suffers from the pandemic crisis due to decelerated growth rate of loans, provided to households and non-financial enterprises, as well as declining profits related to the narrowing spread between interest rates on loans and deposits. The pandemic crisis, which later turned into an economic one, is having a negative impact on the efficiency of the banking system. To prove the negative impact of the pandemic crisis on the efficiency of banks, the non-parametric method for measuring the efficiency, the so-called Data envelopment analysis (DEA), is used.

scholarly journals ANALYSIS OF THE FINANCIAL STATUS OF THE BANKING SECTOR OF UKRAINE

2020 ◽  
pp. 155-162
Author(s):  
D. Tsyhaniuk ◽  
A. Rudniak
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Banking System ◽  
Financial Condition ◽  
Systemic Risks ◽  
Significant Negative Impact ◽  
The Global Financial Crisis ◽  
The Impact

Considering the significant negative impact of financial crises on the banking sector in Ukraine, issues related to the assessment of the financial condition of banks are becoming particularly relevant. Analysis of the impact of the global financial crisis on the activities of Ukrainian banks in recent years has led to the conclusion that an effective, working mechanism for anti-crisis management has not yet been developed, focused on forecasting, overcoming, and limiting the spread of the crisis in the banking system. In this study, we analyzed the state of the banking system of Ukraine, the factors of crises that affected the financial condition of the banking sector of Ukraine in the context of 2009-2019; studied the main performance indicators of banks currently operating in Ukraine; analyzed the financial results of banking activities; Identified systemic risks that operate in the banking sector, as well as the largest risk factors for the financial sector. Calculated indicators of financial stability indicated the existence of systemic risks. According to the results of our study, the dynamics of the ratio of non-performing loans pointed out that the banking system of Ukraine, along with the unstable political and general economic situation, further increases systemic risks for the banking system and for the economy in the entirety; analysis of the Z-score indicator confirmed the presence of systemic risks and clearly demonstrated the duration and level of the crisis; an analysis of the dynamics and the political component of the country's incapacity index indicated that now Ukraine is in the most volatile situation in the last decade.

scholarly journals ECB policy responses between 2007 and 2014: A chronological analysis and an assessment of their effects

2016 ◽  
Vol 63 (4) ◽  
pp. 455-473 ◽  
Author(s):  
Carlos Rodríguez ◽  
Carlos Carrasco
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Lender Of Last Resort ◽  
Policy Responses ◽  
The One ◽  
The Global Financial Crisis

The paper analyses the monetary policy responses of the European Central Bank (ECB) to the global financial crisis and the European sovereign debt crisis. Our goals are on the one hand to explain chronologically the main measures in conventional and unconventional policies adopted by the ECB and on the other hand to analyse their effects on key interest rates, monetary aggregates and the money multiplier. The assessment is that the ECB?s monetary policy responses to the crisis have been ?too little, too late?, constrained by the institutional framework, which prevents the ECB from acting as a true central bank with the role of lender of last resort.

Global Financial Crisis and Bank Productivity in Mexico

2015 ◽  
pp. 581-599
Author(s):  
Francisco Vargas Serrano ◽  
Luis Rentería Guerrero ◽  
Gang Cheng ◽  
Panagiotis D. Zervopoulos ◽  
Arnulfo Castellanos Moreno
Keyword(s):  
Financial Crisis ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Significant Difference ◽  
Before And After ◽  
Domestic Banks ◽  
Productivity Indicators ◽  
The Global Financial Crisis

This chapter presents an attempt to compare the productivity of the Mexican banking sector in two different periods: the 2007-2011 period of global financial crisis and the 2003-2006 stage, which can be regarded as a relatively stable period. The purpose of this study is to disclose whether the global financial crisis affected Mexican banking productivity. Three Data Envelopment Models (DEA) are tested in order to assess whether there is a significant difference between the productivity patterns of Mexican banks before and after the financial crisis. Such models are the radial Malmquist Index, the non-radial and slacks-based model, and non-radial and non-oriented. Essentially, no significant difference of productivity indicators for both foreign and domestic banks was found. Likewise, no significant difference between the pre- and post-crisis periods was perceived, as far as productivity indicators are concerned. Therefore, the global financial crisis was effectless in banking operation.

scholarly journals Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

2019 ◽  
Vol 14 (4) ◽  
pp. 22-33
Author(s):  
Lyubov Khudoliy ◽  
Oleg Bronin
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Basel Iii ◽  
Banking Supervision ◽  
Macroeconomic Shocks ◽  
Bank Supervision ◽  
Banking Institutions ◽  
The Global Financial Crisis

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

scholarly journals The level of financial inclusion in Ukraine: Measuring access, quality, and usage of financial products and services

2021 ◽  
Vol 16 (2) ◽  
pp. 59-67
Author(s):  
Yuliia Shapoval ◽  
Andrii Shkliar ◽  
Oleksii Shpanel-Yukhta ◽  
Kateryna Gruber
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial Inclusion ◽  
Clear Understanding ◽  
Financial Products ◽  
Medium Level ◽  
The Global Financial Crisis

While financial inclusion is seen as a goal of socio-economic development, there is still no clear understanding of how to measure it. Following this concern, the paper deals with the computation of the financial inclusion index of the Ukrainian economy using an annual dataset spanning from 2008 to 2020 and following the Sarma methodology. The object of the study is a set of indicators of usage, access and quality of financial products and services. The obtained results demonstrate the medium level of financial inclusion. The improvement of financial inclusion is observed in 2012, 2013, 2020 (namely 0.55 – 0.56 in the range of 0 and 1). From 2015 (0.38) till 2018 (0.39), the revealed downward trend affirms that the withdrawal of banks from the market has deteriorated the level of quality and usage of financial products and services. Financial inclusion declined during the cleaning up of the banking system in 2014–2016, just as it did after the global financial crisis in 2009–2010. Despite the development of the payment infrastructure, there is a need to diversify access, increase quality, and quicken the usage of financial products and services due to existing distrust in national financial institutions. Improving financial literacy and consumer protection, and closing regulatory gaps in the non-banking sector are seen as ways to enhance financial inclusion. Thus, financial regulators should establish an upward trend in financial inclusion that will ensure full access to formal financial services and will not adversely affect the stability of financial system.

scholarly journals MECHANISMS OF STATE REGULATION OF ANTI-CRISIS MANAGEMENT OF ECONOMIC SECURITY OF BANKING INSTITUTIONS OF UKRAINE

10.31732/ms ◽  
2020 ◽  
Author(s):  
Yana Koval
Keyword(s):  
Crisis Management ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Economic Security ◽  
State Regulation ◽  
International Standards ◽  
Wide Range ◽  
Banking Institutions ◽  
The Global Financial Crisis

An important condition for sustainable economic growth of the country is the reliability and predictability of the banking sector of the economy. The global financial crisis, which has also affected Ukraine, indicates the inconsistency of domestic monetary policy with the requirements of the economic environment. Bringing in line with international standards of banking institutions revealed internal and external risks and threats that negatively affected the functioning of the entire banking system and led to a decrease in the number of Ukrainian banks from 180 at the beginning of 2014 to 77 at the beginning of 2019. Negative changes which took place in the banking system of Ukraine reduced the overall level of its economic security and necessitated the development of an effective mechanism for state regulation of anti-crisis management of economic security of banking institutions in Ukraine. The monograph is devoted to solving a scientific problem related to the development of a mechanism for state regulation of anti-crisis management of economic security of banking institutions of Ukraine on the basis of the development of conceptual, methodological and applied components. In the course of the work the theoretical bases of realization of the mechanism of state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are investigated. Diagnosis of the current state of state regulation by anti-crisis management of economic security of banking institutions. The directions of improvement of the mechanism of the state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are developed. The monograph is designed for a wide range of scientists, managers, specialists in public administration and economic security, teachers, graduate students and students of higher education institutions studying the mechanisms of state regulation of crisis management of economic security of banking institutions in Ukraine.

Determinants of Bank Cost Efficiency in Transition Economies

2019 ◽  
pp. 1-28
Keyword(s):  
Empirical Evidence ◽  
Transition Economies ◽  
Cost Efficiency ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Banking System ◽  
South East Asia ◽  
Bank Management ◽  
Risk Appetite ◽  
The Global Financial Crisis

This chapter leads a complex research study on the determinants of bank cost efficiency in transitional economies based on empirical evidence for Latin America, Central, and Eastern Europe, and South-East Asia. The empirical results suggested that banks, which follow a more cautious strategy, characterized by lower risk appetite and average expectations on profitability, have higher cost efficiency. Moreover, the empirical evidence highlighted the fact that a higher gross domestic product growth rate implies an increase in the inefficiency level, indicating an unsustainable bank management behavior, which in periods of economic growth adopts policies that can generate inefficiency in order to gain market share and to obtain higher bonuses. The global financial crisis has had a high negative impact on the banking system in transition economies.

scholarly journals Slovenian economy in the grip of credit crisis – How to proceed?

2015 ◽  
pp. 19-25
Author(s):  
Imre Balogh
Keyword(s):  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Policy Decision ◽  
Credit Crisis ◽  
Corporate Sector ◽  
Credit Expansion ◽  
Debt Overhang ◽  
The Global Financial Crisis

The Slovenian economy has been through steep ups and downs post-EU accession (2004), and is at the crossroads again. The period 2004–2008 was characterized by balanced monetary and fiscal policies resulting in the adoption of the Euro (2007), coupled with overheated economic growth and propelling corporate indebtedness, fuelled by rapid credit expansion from cheap and abundant foreign funding. The global financial crisis has exposed the “home-grown” vulnerability of the Slovenian economy, bringing about the second largest GDP fall (9.4%) in the Eurozone after Greece, with a double-dip recession (2009, 2012–13). Growth rebounced in 2014 to 2.6% from its low, but the competitiveness of the Slovenian economy continued to slide in international rankings. For further recovery Slovenia, squeezed by high public debt at 82% of GDP, credit contraction despite EUR 5bn state aid injected into the 70% domestically (basically state) owned banking sector, and the continued threat of massive bankruptcy and debt overhang in the corporate sector, has 3 fundamentally different policy options. − Profound restructuring of the banking system and the real sector, on the basis of earnest privatization and voluminous FDI inflow. − Slow creditless recovery due to half-hearted reforms in the financial system and corporate sector. − Substituting wide-ranging micro level restructuring with Government-stimulated credit expansion, reproducing current tensions in even higher magnitudes in the future. In the current state of the Slovenian economy, equity-led growth, combined with far-reaching institutional reforms seems the only choice in laying the foundation for long-term sustainable economic development. This study outlines the critical further steps in re-invigorating the financial system, utilizing also the proposals elaborated by the author and his banking team for the Slovenian macro policy decision-makers.

scholarly journals Ketahanan Bank Umum Syariah di Indonesia Terhadap Fluktuasi Makroekonomi dalam Negeri dan Suku Bunga Dana Federal Reserve

2021 ◽  
Vol 1 (2) ◽  
pp. 349-361
Author(s):  
Donna Sita Soraya Kristanti Jatmiko ◽  
Djoni Djatnika ◽  
Setiawan Setiawan
Keyword(s):  
Interest Rates ◽  
Federal Reserve ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Capital Adequacy ◽  
Return On Equity ◽  
Vector Error Correction ◽  
The Global Financial Crisis ◽  
Internal And External Factors

The development of banking in a country cannot be separated from internal and external factors that can influence it. The monetary crisis in 1998 and the global financial crisis in 2008 are some examples that show that the banking sector can be affected by the surrounding economic conditions, both from within and outside the country. The purpose of this study is to determine the resilience of Islamic commercial banks in Indonesia if there are shocks that occur in macroeconomics, in this case, namely inflation, exchange rates, Bank Indonesia benchmark interest rate (BI rate), SBIS yields (rSBIS) and Federal Reserve funds interest rates. (FFR). This study uses the Vector Autoregression (VAR) and Vector Error Correction Model (VECM) methods. The conclusion of this study is that Non-Performing Financing (NPF) and Return on Assets (ROA) in Islamic commercial banks in Indonesia tend to be more resistant to fluctuations that occur in domestic macroeconomics and FFR. The Capital Adequacy Ratio (CAR) is relatively stable in responding to a shock, while the Return on Equity (ROE) and Financing Deposit Ratio (FDR) have fluctuated in the long term in other words, they are more vulnerable to shocks and fluctuations that occur in domestic macroeconomic variables and FFR.

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