scholarly journals ANTI-CRISIS MANAGEMENT ECONOMIC SAFETY OF BANKING INSTITUTIONS ON THE STATE LEVEL: PROBLEMS AND WAYS OF THEIR SOLUTION

2018 ◽  
pp. 20-28
Author(s):  
Volodymyr Sidak ◽  
Yana Koval
Keyword(s):  
Financial Markets ◽  
Crisis Management ◽  
Transition Economies ◽  
Financial Institutions ◽  
Economic Activity ◽  
Financial Intermediation ◽  
Developed Countries ◽  
Financial Resources ◽  
Financial Activity ◽  
Banking Institutions

The development of the economy directly depends on the state of the banking system, financing and servicing of enterprises by banking institutions. A prerequisite for this is to ensure a stable financial position of banks, which is the main task of both their owners and the regulator of the banking sector. In transition economies with poorly developed financial markets, in most cases, banks are the only institutions that form the necessary information for financial intermediation, provide diversification of financial resources, reduce the level of risk of financial activity, and promote the implementation of leading standards of corporate governance. Even in economically developed countries, banks remain centers of financial and economic activity, while taking a special place among financial institutions as instruments of making credit investments, creating savings and ensuring payments. In addition, stability is extremely important given the functions of financial intermediation, the provision of cash flow, customer satisfaction in financial services, the efficient allocation of credit resources and the maintenance of financial discipline among borrowers. In transition economies with poorly developed financial markets, in most cases, banks are the only institutions that form the necessary information for financial intermediation, provide diversification of financial resources, reduce the level of risk of financial activity, and promote the implementation of leading standards of corporate governance. Even in economically developed countries, banks remain centers of financial and economic activity, while taking a special place among financial institutions as instruments of making credit investments, creating savings and ensuring payments. In the article, the directions of improvement of the mechanism of state regulation of anti-crisis management by the economic security of banking institutions of Ukraine are systematized by systematizing the main measures, which are united in the main directions, in particular such as: the period of implementation; by the entities that implement them; on the mechanisms of implementation; by types of banking activity.

scholarly journals THE PROBLEMS AND PROSPECTS FOR FINANCIAL INTERMEDIATION DEVELOPMENT IN UKRAINE

2019 ◽  
pp. 92-100
Author(s):  
Iryna PRIKHNO ◽  
Igor CHASTOKOLENKO ◽  
Artem MARCHENKO
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Intermediation ◽  
Financial Sector ◽  
Financial Resources ◽  
Financial Intermediaries ◽  
Banking Institutions ◽  
Business Entities ◽  
State Pension

In today's global economy, financial intermediation is an extremely powerful source of financial resources that can be used for investment purposes, since financial intermediaries can combine temporarily free (unused in the economy) financial resources of different business entities and direct them to those sectors of the economy that need investment. At the same time, financial intermediaries simultaneously provide the movement of financial assets and contribute to the development of the economy. It is proved that the objective need for a study of financial intermediation in Ukraine is to establish such a mechanism for the redistribution of financial resources in the country in order to achieve the maximum level of development of the economy both at the micro level and at the macro level. In Ukraine, the process of reforming the economy continues, including the financial market. The main participants in the financial market are financial intermediaries, which bring together buyers and sellers of financial assets. Activities of financial intermediaries in the financial market can be characterized by the fulfillment of the following main functions: accumulation of savings of economic entities; placing of attracted financial resources in the branches of economy; obtaining profit (own, as well as other economic entities); ensuring economic development. We believe that the main purpose of financial intermediaries is to create a balance in the financial market by matching interests and needs of all participants in the financial market and balancing demand and supply on financial resources. The most common is the division of financial intermediaries into banking institutions (banking sector) and non-bank financial institutions (non-banking financial sector). Currently, in Ukraine, banking institutions are represented by universal and specialized commercial banks of Ukraine, and non-bank financial institutions are represented by insurance and financial companies, credit unions and pawnshops, non-state pension funds and trust companies. According to statistics, the banking sector is larger in terms of assets, while the number of financial market participants is dominated by the non-banking financial sector. The analysis carried out shows an increase in the role of non-bank financial institutions in the financial market. Non-financial sector entities are dominated by financial companies. The article outlines the following main problems of the development of financial intermediation entities in Ukraine: the inconsistency of the financial system of Ukraine with the real sector of the economy, as a result of which the non-banking sector of the economy is not able to fully perform its main functions; the presence in the financial market of institutions that practically do not perform the functions assigned to them, thus creating significant risks for the normal functioning of the market; Ineffective legislation and an ineffective system for overseeing the activities of financial intermediaries, which gives rise to distrust of financial institutions; low level of financial literacy of the population. In order to overcome the problems identified and to provide an effective mechanism for the functioning of financial intermediary institutions in Ukraine, it is proposed to: introduce common rules of conduct in the financial market for banks and non-bank financial institutions, but taking into account the specifics of each type of financial intermediary; to intensify activity in the financial market of investment funds, insurance companies and non-state pension funds; Maximize the attraction of the non-banking financial sector to the development of the real sector of the economy; introduce a reliable mechanism for protecting the funds of the population and business entities; to create a service consulting center for the provision of services by non-bank financial institutions. We believe that the outlined directions for solving the problems of the development of financial intermediation create the basis for its further improvement and promote the activation of their effective activity.

scholarly journals INTERMEDIATION IN FINANCE

2019 ◽  
Vol 26 (6) ◽  
pp. 1727-1730
Author(s):  
Redon Koleci
Keyword(s):  
Financial Institutions ◽  
Financial Intermediation ◽  
Financial System ◽  
Capital Gains ◽  
The Other ◽  
Financial Resources ◽  
Financial Intermediaries ◽  
Other Hand ◽  
The One ◽  
Key Participants

Financial institutions are financial intermediaries in the process of transferring financial funds between participants in the financial system. The key participants in the financial system are: individuals, businesses, financial intermediaries and the government.Money holders are interested in investing their savings in earning income. As compensation for this, they earn profits in various forms, such as interests, dividends, capital gains, etc. Also, borrowers need additional financial funds to finance their investment or consumption programs. They are obliged to borrow those funds from financial institutions. For lending funds they pay a certain lender's price.With the intermediation of financial institutions, it is possible to transfer financial funds from entities that have surplus to entities lacking financial funds and at the same time need to be provided from external investment or consumption sources, if the accumulation of sufficient financial resources from own resources.The essence of financial intermediation lies in the collection of financial funds from many individuals and businesses that own financial savings, and their investment in various forms. With the disclosure of the financial intermediation process, we note its multidimensional aspect, on the one hand, as a pool of financial funds in various forms and their concentration, while on the other hand, as investment of shelled funds through various forms of loans to borrowers who need funding.

scholarly journals The Regulation and Use of Artificial Intelligence and 5G Technology to Combat Cybercrime and Financial Crime in South African Banks

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Princess Ncube
Keyword(s):  
Artificial Intelligence ◽  
South African ◽  
Financial Institutions ◽  
Insider Trading ◽  
Developed Countries ◽  
Policy Makers ◽  
Broadband Internet ◽  
Internet Connectivity ◽  
Generation Network ◽  
Banking Institutions

Artificial intelligence (AI) and fifth generation network technology (5G) are now being utilised by some companies and financial institutions such as banks to enhance their competitiveness and expand their businesses. The general types of AI include functional AI, interactive AI, text AI, visual AI and analytic AI. The key components of AI include machine learning, fast Internet connectivity, deep learning, neural networks and advanced data analysis. These components may be complemented by the adoption and use of standard 5G cellular networks. 5G utilises broadband Internet access and Internet connection, and is now employed by some banking institutions, especially in developed countries. It is not clear whether South African banking institutions have adopted 5G for their Internet connectivity and operations. AI and 5G may be used to detect and combat cybercrimes in banking institutions. On the other hand, AI and 5G may also be abused by cybercriminals to commit financial crimes such as money laundering and insider trading. In this regard it is submitted that South African policy makers should carefully revise the Cybersecurity Bill B6-2017 (Cybercrimes Bill) to embrace the use of AI and 5G to detect and combat cybercrimes in South African banks. Accordingly, this article examines the adequacy of the Cybercrimes Bill. It also explores the regulation and use of 5G and AI to detect, prevent and combat cybercrimes in banks and other financial institutions in South Africa.

scholarly journals The Impact of Learning Organization Practices on Subjective Performance of Employees: The Case of Islamic Financial Institutions (IFIs) of Developing Countries

2020 ◽  
Vol 7 ◽  
pp. 1-1
Author(s):  
Muhammad Abdul Rehman Shah ◽  
Meher Bano ◽  
Shaherbano
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Employee Engagement ◽  
Learning Organization ◽  
Financial Institutions ◽  
Developed Countries ◽  
Learning System ◽  
Islamic Financial Institutions ◽  
The Impact ◽  
The Relationship

Purpose: The objective of this study is to explore the relationship between learning organization practices and subjective performance of employees moderated by employee engagement in in emerging financial markets of Malaysia, Pakistan, and Indonesia. There are identified continuous learning, collaboration and team learning, system to capture learning, empower employees, the connection to organization, strategic leadership, inquiry and dialogue as seven dimensions of learning organization practices. All of them affect more or less the subjective performance of employees in any organization. Research Design: We select the sample of 230 people working in different departments of Islamic Financial Institutions (IFIs) of developing countries; Malaysia, Pakistan, and Indonesia. Data is collected from the concerned organizations. Findings: On empirical basis, the relationship is found highly significant, learning organization is affecting subjective performance of employees with maximum coefficient of β=.681, which means an increase in learning organization practices will affect subjective performance of employees positively in emerging Islamic financial markets of Malaysia, Pakistan, and Indonesia. Practical implications: The study recommends that learning organization practices should be considered to increase the subjective performance of the employees in IFIs of developing countries. Originality/ value: An association between learning organization practices and subjective performance is explored with major concentration on conventional institutions of the developed countries, whereas this study explores the impact of learning organization practices on subjective performance of employees in the case of Islamic financial institutions (IFIs) of developing countries.

scholarly journals Comparative assessment of Islamic and traditional banking in the context of their sustainability

2021 ◽  
Vol 110 ◽  
pp. 01045
Author(s):  
Magomed Tashtamirov ◽  
Milana Abdurakhmanova
Keyword(s):  
Financial Institutions ◽  
Traditional Approach ◽  
Comparative Assessment ◽  
Islamic Finance ◽  
Financial Activity ◽  
The Past ◽  
New Models ◽  
Banking Institutions ◽  
Insignificant Difference ◽  
Financial Transactions

The development of banking in particular, and the financial system as a whole, is associated with many transformations and transformations that relate not only to certain aspects of the activities of financial institutions, but also to the processes of forming new models for organizing financial transactions. One of these models is the Islamic system of organizing financial activities, which has been actively developing over the past 30 years. However, the question of comparing Islamic finance and the traditional approach to organizing banking activities in terms of their efficiency, stability and liquidity remains open. This study is aimed at identifying and systematizing the main approaches to the comparative assessment of the effectiveness of the two models of financial activity. As a result of the study, it was revealed that the Islamic bank has both differences from traditional banking institutions, which is associated with the specifics of individual states and the architecture of national banking systems, and similar identical characteristics, which indicate an insignificant difference in the efficiency and sustainability of the two models.

scholarly journals COVID-19: How does it impact to the Indonesian economy?

2020 ◽  
Vol 5 (02) ◽  
Author(s):  
Prihartini Budi Astuti ◽  
Arya Samudra Mahardhika
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Informal Sector ◽  
Economic Activity ◽  
Business Performance ◽  
Household Consumption ◽  
Capital Flight ◽  
Corporate Sector ◽  
Manufacturing Trade ◽  
Vulnerable Households

The Coronavirus began to enter Indonesia in officially in early March  2020. The massive spread of COVID-19 caused a decline in economic activity, and the pandemic has been infected in various sectors such as household consumption, investment, and financial institutions in Indonesia.  There is a threat of loss of community income because they cannot work to fulfill their daily needs, especially for poor and vulnerable households and the informal sector. The decline also occurred at MSMEs. This business actor cannot conduct his business activities so that his ability to fulfill credit obligations is impaired. The corporate sector has also been disrupted, especially in manufacturing, trade, and transportation. The disruption will reduce business performance so that it causes the termination of employment and even bankruptcy. Financial institutions also have the potential to experience liquidity problems, causing depreciation of Indonesian currency, volatility in financial markets, and capital flight.

Part I The General Context, 2 Risk and Capital

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
Economic Recession ◽  
General Context ◽  
Financial Difficulty ◽  
Conservative Attitude

This chapter considers the link between issues of risk and capital. It argues that although all commercial enterprises take risks, the activities of banks and other financial services enterprises give rise to special considerations because they may attract funds from individuals who have either no appetite for risk or a much more conservative attitude to risk. Moreover, the interconnection between financial institutions in the wholesale financial markets also means that if one institution gets into financial difficulty there is a serious risk, as the recent global financial crisis has shown, that the problem may spread rapidly to other financial institutions and cause serious financial instability, damaging economic activity across the board. Indeed, the evolution of the ‘credit crunch’ into the financial crisis, triggering the global economic recession that began in 2008, appeared to follow exactly this pattern.

Payment Systems of Financial Institutions

2006 ◽  
pp. 39-51
Author(s):  
Yutaka Kurihara ◽  
Shigeaki Ohtsuka
Keyword(s):  
Financial Institutions ◽  
Systemic Risk ◽  
Economic Activity ◽  
Developed Countries ◽  
Payment Systems ◽  
Settlement Systems ◽  
Market Participants ◽  
The Subject ◽  
Legal Frameworks ◽  
Entire Economy

Economic activity is always accompanied by payment. Payment systems, which are the subject of much recent discussion, are an indispensable part of the infrastructure that supports the entire economy. Progress in the field of information technology (IT) has spurred new developments in hardware and software that affect payment systems. Of recent interest are issues of increasing payment risk and the severe situation of financial institutions in some developed countries. The costs associated with setup and operation of payment systems is high, and market participants expect efficiency. Many problems are associated with bond payments. The spread of delivery vs. payment (DVP) systems and IT-based transactions are also impacting payment systems. Links between payment systems are also important and have made concerns about systemic risk if time-designated net settlements coexist with real-time gross settlements (RTGSs), which can alter outcomes or cause cancellations, thereby increasing systemic risk. If RTGSs and the net payment system are not operated by a single rule, this problem worsens. Unification of settlement systems, rules and dealings custom is critical. The complex legal frameworks that govern payment activity would benefit from structural revisions.

STRESS-TESTING OF COMPLEX RISKS IN THE BANKING SYSTEM, AS AN INSTRUMENT OF STATE ANTI-CRISIS MANAGEMENT

2018 ◽  
Vol 1 (12) ◽  
pp. 138-148
Author(s):  
Yana Sergeevna Koval
Keyword(s):  
Crisis Management ◽  
Stress Testing ◽  
Banking System ◽  
Regulatory Capital ◽  
Financial Activity ◽  
Optimal Balance ◽  
Functional Orientation ◽  
Banking Institutions ◽  
Constituent Elements

In the article the basic methods of crisis management of financial activity of banks are investigated. The constituent elements for the development of the program of financial rehabilitation of Ukrainian banks under the state anti-crisis management have been identified. The typology of stress-testing according to the functional orientation (sphere of use) is described. The types of stress-testing of risks in the banking system, as an instrument of state crisis management, are described. The basic methods of stress testing in the banking system as a tool of state crisis management are offered. The emphasis is on the factors in which stress testing is effective. Determined that the criteria for a successful exit from the crisis of the banking institutions, in addition to these results can be considered the use of certain methods of crisis management financing activities Bank: stop outflow of customers; creation of sufficient reserve of liquid assets; Achieving an optimal balance between assets and liabilities by maturity; reaching an agreement on restructuring with all or an absolute majority of creditors; absence of arrears of the bank before contractors; positive tendencies in returning debts by borrowers, increase of share of standard loans; stable tendency to reduce losses and subsequently — increase of the level of profitability of work; raising capitalization with a sufficient buffer of capital in the event of stress events and a steady excess of regulatory capital over statutory; stabilization of the management at the level of government and key units; closure of unprofitable or unpredictable and long-term business development projects of the bank; completion of the restructuring of the bank's affiliate network.

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

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