scholarly journals APPLICATION OF LEGISLATIVE AND NONLEGISLATIVE MORATORIES IN THE MATTER OF SUSPENSION OF BANK LOANS

2021 ◽  
Vol 14(63) (1) ◽  
pp. 155-166
Author(s):  
Carmen Adriana Gheorghe ◽  
Keyword(s):  
Banking System ◽  
The State ◽  
Bank Loans ◽  
Domestic Economy ◽  
Negative Effects ◽  
Banking Market ◽  
Public Exposure ◽  
The Postponement

In order to avoid blocking the capacity of the banking system to finance the domestic economy, a legislative package was issued in order to protect the interests of bank debtors, at the suggestion of EBA and against the background of the crisis caused by COVID-19. In addition, the legislative moratorium was supplemented by a non-legislative moratorium, and as a result of their application, the payment obligations of the debtors who requested the postponement were suspended. The analysis of the effects produced on the banking market leads to the conclusion that the government's measures caused both positive and some negative effects - the risk of default for banks and public exposure being the sensitive factors. As a result, the state and the B.N.R. intervened with specific means.

Methodological Approach to Assessing the Investment Attractiveness of the Industry for the Banking Sector

2019 ◽  
Vol 26 (12) ◽  
pp. 52-60 ◽  
Author(s):  
A. V. Larionov
Keyword(s):  
Banking Sector ◽  
Public Investment ◽  
Methodological Approach ◽  
Banking System ◽  
The State ◽  
Bank Loans ◽  
Real Sector ◽  
Theoretical Concepts ◽  
Factors Affecting ◽  
The Real

This paper presents selected results of the study on improving information and methodological tools to increase the effectiveness of entrepreneur’s and state investment policy. Final result of this study - is developing guidelines for calculating the coefficient of investment attractiveness of the banking industry based on the physical theory of heat transfer. Classification of industries according to the degree of investment attractiveness allows to select the industries that will receive the least amount of resources from private investors. The least attractive sectors will be able to obtain public investment resources. For sectors with high investment attractiveness, public funds will only supplement the flow of free liquidity from the banking sector. The lack of liquidity in the real sector is compensated by attracting private funds, a significant share of which is in the banking sector. The real sector could also get the state investments. In this regard, it is important for the state and the banking sector to assess the industries from the position of the possibility of returning the funds, as well as obtaining additional income. The study presents guidelines for calculating the coefficient of investment attractiveness of the industry for the banking sector. The indicator takes into account both the distribution of bank loans in the economy by industry, and the expected profitability of lending, affecting the bank’s decision to issue a loan. Based on the analysis of theoretical concepts, it was demonstrated that the liquidity of the banking sector can be redistributed ≪freely≫ (due to market mechanisms) and ≪involuntarily≫ (through the implementation of state policy related to the direction of funds in certain sectors where there is a lack of resources). The study considers a methodological approach to the assessment of factors affecting the distribution of liquidity of the banking system in the real sector of the economy. The considered approach takes into account behavioral aspects of decision-making in the banking system.

scholarly journals Assessing the Reliability of Ukrainian Banks According to V. Kromonov's Rating Methodology

2021 ◽  
Vol 7 (522) ◽  
pp. 186-194
Author(s):  
Y. M. Dziurakh ◽  
◽  
I. Y. Kulyniak ◽  
Keyword(s):  
Financial Market ◽  
Banking System ◽  
The State ◽  
Private Capital ◽  
Relevant Issue ◽  
Banking Market ◽  
Banking Institutions ◽  
Rating Model ◽  
Reliability Coefficients ◽  
Foreign Banking

Assessment of the reliability of banks and their rating is a relevant issue for all participants of the financial market. Taking into account the fact that a methodology should be based on the availability of information data, clarity and openness of the algorithm, and a limited number of analyzed indicators, the authors, for assessing the reliability of the banking system of Ukraine in separate banking groups, chose the most popular methodology of V. Kromonov. The article contains the results of assessment of V. Kromonov's rating model indicators for the period 01.01.2017–01.06.2021 for the banking system of Ukraine in general, as well as for the group of banks with the State-owned share, banks of foreign banking groups and banks with private capital. It is identified that the level of reliability of the banking system of both Ukraine and banking groups is in poor condition, since the calculated values of integral reliability coefficients do not exceed the value of 30 points, which indicates the presence of significant problems in the functioning of the banking market, imbalance of assets and liabilities, low level of solvency of banks and same for liquidity of assets. A comparative characterization showed that the reliability of Ukrainian banks with the State-owned share is significantly inferior to the reliability of banks of foreign banking groups and banks with private capital. It is determined that the amount of equity of the banking system of Ukraine is not sufficient to repay possible losses in case of non-return or return in an impairment form of a working asset. A computation of liquidity coefficients showed a tendency to reduce the level of coverage of liabilities by liquid assets of banking institutions, to reduce the solvency of the banking system and worsen the ability of banks to fulfill their obligations. Improving their reliability should be one of the primary strategic tasks of all banks.

scholarly journals The Situation of Bank Lending in Ukraine: Current Problems and Prospects of Recovery

2016 ◽  
Vol 8 (3) ◽  
pp. 89-97 ◽  
Author(s):  
Svetlana Manzhos
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Bank Lending ◽  
The State ◽  
Bank Loans ◽  
Foreign Banks ◽  
Theoretical Research ◽  
Bank Failures ◽  
Investment Projects

Abstract The article investigates the state of bank lending in Ukraine, identifies the source of the severe banking crisis, that broke out in Ukraine in 2014-2015. Additionally, it suggests recommendations for the enhancement of the role of bank lending in the process of expanded incentives for investments in order to facilitate the exit from the economy crisis towards the economic growth. Using the general scientific methods of empirical and theoretical research, the dynamics of bank lending in Ukraine in 2003- 2014 was analysed and the following periods were distinguished: 2003-2007, which is the period of the rise of a strong banking system and the increase of bank lending; 2008-2009, when the crisis and post-crisis recovery processes have been attempted, and 2014-2015, which is the period of an unprecedented crisis and a wave of bank failures. The analysis revealed the following main factors constraining the lending to the economy of Ukraine in today’s conditions: a slowdown in the economic growth, increasing economic and political risks of inflation and devaluation expectations, rapid fluctuations of exchange rate, a high cost and the lack of credit because of insufficient domestic resources and the mismatch of terms and conditions of bank loans with the aim to attract resources, a significant credit risk and imperfect methods of management, the lack of clear mechanisms for loan repayment applicable to insolvent borrowers, and inadequate protection of the rights of lenders and borrowers. The article substantiates that the stimulation of the lending process should be based on the following: the improvement of the investment climate in Ukraine, using stricter lending criteria, ensuring effective mechanisms for provisioning for credit risks, and the improvement of measures for the protection of rights of lenders and borrowers. The state should focus on new projects stimulating - international investments by introducing the European standards on domestic enterprises, including joint investment projects in strategic sectors; the promotion of investment projects in support of small and medium enterprises; and intensified efforts to stimulate foreign banks to open credit lines for small and medium-sized businesses to implement energy efficiency projects under the state guarantee.

scholarly journals Assessment of the State of Competition in the Banking Market in the Russian Federation

2016 ◽  
Vol 62 (3) ◽  
pp. 13-19
Author(s):  
Anna Rabdanova ◽  
Vera Bulatova
Keyword(s):  
Russian Federation ◽  
Financial Services ◽  
Banking System ◽  
The State ◽  
Banking Competition ◽  
Monetary System ◽  
Current State ◽  
Banking Market ◽  
The Russian Federation ◽  
The Stability

Abstract Competition is one of the factors directly influencing the development of the banking market, the stability of the banking system, and the monetary system as a whole. This article describes the features of banking competition, methods of analysis of banking competition, and an analysis of the current state of competition in the banking market in the Russian Federation. The analysis of banking competition in the Russian Federation was performed using the concentration ratio for the top three companies and the Herfindahl-Hirschman Index. The research concludes with an assessment of the state of competition in the banking market and identification of the barriers to entering the financial services market.

scholarly journals МАРКЕТИНГОВОЕ ИССЛЕДОВАНИЕ РЫНКА БАНКОВСКИХ ПРОДУКТОВ ГРУЗИИ

2021 ◽  
Author(s):  
Хатуна Шаламберидзе ◽  
◽  
Наргиза Каркашадзе ◽  
◽  
Keyword(s):  
Everyday Life ◽  
Commercial Banks ◽  
Foreign Capital ◽  
Banking System ◽  
Complete Information ◽  
The State ◽  
Banking Market ◽  
National Bank

Today, the Georgian banking system is still at the stage of transformation and constant changes and it has not gone through all the stages of preparation for the market. The state is constantly striving to have healthy competition in the banking market and get the maximum result that the market can afford. According to the data published by the National Bank of Georgia, today 15 officially licensed commercial banks are officially registered, out of which 14 banks have foreign capital, which naturally sets high competition and standards. That is why it is important for banks to create products that will be acceptable to consumers. Banking products are becoming so necessary for everyday life that the interest and aspiration towards it is growing daily. From the above it becomes important to the bank Clients or the interested public to have complete and complete information about it.

scholarly journals Deposit insurance system as a guarantee of depositor’s protection

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Olena Sova ◽  
◽  
Nataliia Poliakova ◽  
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Banking System ◽  
Well Being ◽  
The State ◽  
Household Savings ◽  
Negative Effects ◽  
Guarantee System ◽  
European Standards ◽  
The Stability

The article examines the state and trends in the development of the deposit guarantee system for individuals in Ukraine. The challenges and needs of improving the mechanism of centralized insurance protection of depositors are identified. The authors emphasize the growing role of the Deposit Guarantee Fund of individuals in the banking market and expanding the scope of its modern mechanisms to reduce the negative effects of bank bankruptcy, which is an important factor in ensuring the stability of the banking system. Emphasis is placed on considering the disposable income of domestic households, as this indicator is an eloquent indicator of improving the country’s economic well-being. Parallels were made in the analysis of quantitative indicators of state social guarantees, namely: the expression of the living wage and the amount of the minimum wage for 2016-2020. The size of the household savings growing is estimated. The importance of converting household savings into investments for economic development is determined and the number of deposits and the value of deposits for households in 2016-2020 are analyzed. The authors also illustrate the dynamics of changes in the UIRD indicator. The deposit guarantee system is presented as an important factor in the financial stability of the state economy. The article emphasizes the successful steps of legislative regulation of the subject composition of the Deposit Guarantee Fund of Ukraine and reformation of compensation limits, which brings the domestic insurance field closer to European standards of depositor’s protection. According to the results of attracting deposits from the top-9 commercial banks of Ukraine, tables have been formed, the data in which allow making conclusions about the leaders of the deposit services market and the amount of potential reimbursement. Proposals have been formulated to improve the deposit guarantee system, aimed at optimizing insurance schemes and relations in accordance with the threats to financial security as an objective phenomenon of a market economy and the conditions of globalization.

On the diversity of the effects of the state support for agriculture

2019 ◽  
pp. 59-73 ◽  
Author(s):  
Nikolai M. Svetlov ◽  
Renata G. Yanbykh ◽  
Dariya A. Loginova
Keyword(s):  
Agricultural Production ◽  
The State ◽  
Russian Regions ◽  
Negative Effects ◽  
State Support ◽  
Soft Budget Constraints ◽  
Institutional Conditions ◽  
Positive Effects ◽  
Production Factors ◽  
Corporate Farms

In this paper, we assess the effects of agricultural state support of corporate farms on their revenues from agricultural production sales in 14 Russian regions that differ in technology, environment and institutional conditions. In addition to the direct effect of the state support, the indirect effects via labor and capital are revealed. For this purpose, we identify production functions and statistical models of production factors for each of these regions separately. We find out diverse effects of the state support on revenues among the regions. Positive effects prevail. Negative effects are mainly caused by labor reductions that follow subsidy inflows. Another cause of negative effects is the soft budget constraints phenomenon.

Discretionary Accruals in Italian Private Firms and Non-Linear Bank Loan Granting

2017 ◽  
pp. 83-99
Author(s):  
Elisabetta Mafrolla ◽  
Viola Nobili
Keyword(s):  
Financial Reporting ◽  
Banking System ◽  
Regulatory System ◽  
Discretionary Accruals ◽  
Bank Loans ◽  
Bank Loan ◽  
Banking Union ◽  
Private Firms ◽  
European Banking Union

This paper investigates whether and at what extent private firms reduce the quality of their accruals in order to signal a better portrait to the bank and obtain new or larger bank loans. We measure earnings discretionary accruals of a sample of Italian private firms, testing whether new and larger bank loans are associated with a higher (lower) quality of earnings in borrowers' financial reporting. We study bank loan levels and changes and how they impact discretionary accruals and found that, surprisingly, private firms' discretionary accruals are systematically positively affected by an increase in bank loans, although they are negatively affected by the credit worthiness rating assigned to the borrowers. We find that the monitoring role of the banking system with regard to the adoption of discretionary accruals is effective only when the loan is very large. This paper may have implications for policy-makers as it contributes to the understanding of the shortcomings of the banking regulatory system. This is an extremely relevant issue since the excessive amount of non-performing loans held by Italian banks recently threatened the stability of the European Banking Union as a whole.

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.

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