scholarly journals FACTORS FOR ATTRACTING HOUSEHOLD SAVINGS TO THE BANK DEPOSIT MARKET OF UKRAINE: REGIONAL DIMENSION

2020 ◽  
Author(s):  
Marianna Kichurchak ◽  
Keyword(s):  
Factor Analysis ◽  
Interest Rates ◽  
Principal Components ◽  
Methodological Approach ◽  
Banking System ◽  
Economic Conditions ◽  
Household Savings ◽  
Labour Market Situation ◽  
Independent Variables ◽  
Bank Deposits

It is important to specify the major conditions that influence the decision of households to deposit their temporarily free funds in the banking system by regions of the country. The purpose of the article is to identify the most important factors in attracting household savings to the bank deposits market in Ukraine taking into account its regions. The following scientific methods are used in the research, such as: induction and deduction, analysis and synthesis, comparison, factor analysis by the principal components method, econometric modelling. The author has substantiated that the structuring of factors of depositing households’ savings in the regional bank deposits market involves the use of such scientific and methodological approach as: determining dependent (volumes of households’ bank deposits by regions in total, national and foreign currencies) and independent variables which characterize main social and economic conditions of household activity, interest rates on deposits by types of currencies by regions; conducting factor analysis by the method of principal components in order to classify and rank factors which affect the dynamics of household bank deposits at the regional level; specifying sample regression functions as to define the types of relationships between dependent and independent variables. It is identifying that the decisions of households to deposit their savings in the bank deposits regional market in Ukraine have multifactorial origin; a special place belongs to the perception of potential depositors of the current economic situation, assessment of their welfare and labour market situation, focus on interest rates on deposits offered by banking institutions and its terms. The author has found out that the activation of attracting household savings to the bank deposits market is associated with the stabilization of social and economic conditions of development for the Ukrainian regions, positive expectations of depositors and the formation of proper deposit policy of commercial banks. It is outlined that the prospects for further research are related to the evaluation of the level of concentration of the household bank deposits market by regions of Ukraine.

scholarly journals The Role of Bank Loans and Deposits in the Monetary Transmission Mechanism In Malaysia

2009 ◽  
Author(s):  
Salina Kassim ◽  
M. Shabri A. Majid
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Banking System ◽  
Decomposition Analysis ◽  
Bank Loans ◽  
Monetary Transmission ◽  
Impulse Response Functions ◽  
Crisis Period ◽  
Transmission Process ◽  
Bank Deposits

This study attempts to determine the importance of the banking sector in the monetary transmission process in a developing economy. The study analyzes the Malaysian data focusing on three sample periods: the entire sample period (1989:01-2006:12); the pre-crisis period (1989:01-1996:12); and the post-crisis period (1999:01-2006:12). To achieve this objective, the study relies on two tests: first, the auto-regressive distributed lag (ARDL) model for the long-run relationship among the variables and second, the impulse response functions and variance decomposition analysis for the short-run relationship among the variables. The finding shows that both bank deposits and loans play crucial roles in the monetary transmission process in the economy, suggesting evidence for the money endogeneity theory of post-Keynesian economists. In particular, bank deposits and loans are shown to provide an important link from monetary policy to output. This underscores the importance of ensuring the soundness of banking system as a pre-requisite to economic stability in the absence of such market based tools as market-based actions on exchange rate or interest rates as monetary stabilisation tools.  

scholarly journals Financial dollarization: Trojan horse for Ukraine?

Ekonomika ◽  
2015 ◽  
Vol 94 (3) ◽  
pp. 21-45
Author(s):  
Nataliia Versal ◽  
Andriy Stavytskyy
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Foreign Currency ◽  
Banking System ◽  
Inflation Expectations ◽  
Domestic Currency ◽  
Currency Exchange ◽  
Bank Deposits ◽  
The Exchange Rate ◽  
Financial Dollarization

The paper revisits the causes and consequences of financial dollarization in Ukraine during the past decade (monthly data). Dollarization in emerging markets plays a dual role: positive and negative. This study of financial dollarization is in the context of resident household holdings of foreign currency-denominated bank deposits and loans. If exchange rates are stable, deposit dollarization allows the withdrawal of money from the shadow economy, and loan dollarization allows the lending of long-term money, which is not possible with domestic currency due to inflation expectations. At the same time, the instability and lack of supply of foreign currencies in the market result in the collapse of household and bank finances, leading to currency risk, credit risk, and liquidity risk. Therefore, the study uses estimate indicators, the deposit dollarization index (DDI), household foreign currency deposits and loans, loan to deposit ratio (LTD), and inflation to find out the tendencies in the context of a changing domestic currency exchange rate. We present three models to reveal the influence of financial dollarization on banking stability. The first one explains the real value of domestic currency deposits through indicators such as M2 (positive), exchange rate (negative), domestic currency deposits (positive), and panic effects (negative). The second one describes the influence of the exchange rate (negative) and panic effects (negative) on foreign currency deposits. The third one explains the DDI through such the exchange rate, M2, and interest rates. The combined models provide an insight about the time necessary to stabilize the Ukrainian banking system.

scholarly journals Household bank deposit market in Ukraine: structural and regional peculiarities

2020 ◽  
Vol 2020 (8) ◽  
pp. 26-41
Author(s):  
Marianna KICHURCHAK ◽  
Keyword(s):  
Interest Rates ◽  
Structural Changes ◽  
Methodological Approach ◽  
Banking System ◽  
Regional Level ◽  
System Integrity ◽  
Structural Peculiarities ◽  
Analysis And Synthesis ◽  
Favourable Environment ◽  
The Impact

The household bank deposit market belongs to one of the important components of the financial system of each country, leading to the need to clarify the dynamics of its development in the national economy and its regions. The purpose of the article is to determine the main regularities of functioning the household bank deposit market in terms of regions and the nature of structural changes in it, to develop recommendations for improving its environment and working conditions in the economy of Ukraine. Scientific methods of deduction and induction, analysis and synthesis, comparison and econometric modelling have been used. Structural peculiarities of the evolution of this market in 2009-20118 are evaluated at the regional level and its development is compared with similar markets in Belarus and Poland. The author has established this market had a tendency towards gradual decrease based on the reaction of households due to changes in social and economic and political conditions and violation of the banking system integrity in the years after 2014. It is determined that there was a gradual increase of regional concentration indices caused by raising differences of regional social and economic characteristics and household expectations. The following scientific and methodological approach to determining the nature of the development of the household bank deposit market by regions of Ukraine is worked out: specification of the main factors, their subsequent concretization by finding chief parameters of econometric models and clarifying the impact of identified factors on the regional structure of this market. It is found out that the improvements of social and economic conditions and activation of the labour market at the regional level, prudent policy of commercial banks concerning interest rates on deposits will create a favourable environment for the development of this market by region and achievement of positive structural transformations.

scholarly journals THE PROSPECTS OF INCREASING OF BANK’S RESOURCES POTENTIAL AT THE EXPENSE OF ACTIVATION OF INVOLVING HOUSEHOLD SAVINGS

2021 ◽  
Author(s):  
Olekii Yermolenko ◽  
Oleksandra Kokovikhina ◽  
Nataliia Lysonkova
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Foreign Currency ◽  
Household Savings ◽  
Monetary Aggregate ◽  
Bank Deposits ◽  
Level Of Economic Development ◽  
Potential Resource ◽  
Methodological Principles ◽  
To Receive

At present, the economy of Ukraine needs to attract significant financial resources and the Ukrainian financial system has them, but in a frozen state. This is the household savings in the cash form. The problem is to convert unorganized household savings into bank resources, which will meet the needs of economic entities in borrowed funds and at the same time allow citizens to receive additional income, which will lead to increased consumer demand. The purpose of this article is the development of theoretical and methodological principles and practical proposals for the transformation of household savings into banking resources. However, it is necessary to identify the factors of the formation of household savings, the main of which is undoubtedly the level of income. Certainly, the income of the population plays a significant role in the development of the whole country. And it is the level of economic development of the country that determines the motivation of households in the creation of savings. In addition, the amount of savings is also influenced by other factors, such as the level of income taxation, deposit and credit interest rates, the age structure of the population, etc. The article has analyzed the dynamics of incomes and savings of the population from 2005 to 2019, as well as the monetary aggregate M0 as a potential resource of commercial banks. It was determined that the amount of monetary aggregate M0 in 2005 amounted to UAH 60.2 billion, and by the end of 2019, this figure exceeded the mark of UAH 384.4 billion. The monetary aggregate M0 includes cash in circulation outside deposit-taking corporations, which includes funds of the population, which under certain conditions may become a banking resource. At the same time, the ratio of the monetary aggregate M0 and M3 in Ukraine during 2005-2019 remains consistently high - at 27%. Interestingly, that only about 50% of the population's savings become resources of banks. While businesses are looking for affordable sources of financing their investments, much of the savings are accumulated in the form of national and foreign currency. This is due to the low attractiveness of alternative investment options for the population (in private pension funds, life insurance, mutual investment institutions, real estate, etc.) bank deposits will remain the main means of investment soon. However, the formation of the resource potential of banks based on household savings should be based on a combination of tools at all levels of the hierarchy, such as the influence of the NBU, the banking sector, and individual banks.

A Factor Analysis of Advertising Practitioners' Perceptions of Advertising Ethics

1993 ◽  
Vol 73 (3_suppl) ◽  
pp. 1307-1314 ◽  
Author(s):  
Cornelius B. Pratt ◽  
E. Lincoln James
Keyword(s):  
Factor Analysis ◽  
Regression Analysis ◽  
Social Responsibility ◽  
Principal Components ◽  
Stepwise Multiple Regression ◽  
Stepwise Multiple Regression Analysis ◽  
Advertising Ethics ◽  
Independent Variables ◽  
Forward Stepwise ◽  
Public Responsibility

This research investigated the perceptions of advertising ethics among 460 members of the American Advertising Federation. A principal components factor analysis of members' perceptions, measured by 17 statements, produced four factors of “agencies' standards,” “active public responsibility,” “advertising claims,” and “agencies' social responsibility.” These factors, then used as composite independent variables in a forward stepwise multiple-regression analysis, showed that Factor 3 (“advertising claims”) was the best predictor of the application of deontological (or nonconsequential) ethics to ethically troublesome situations in advertising. Implications of these results for advertising ethics are outlined and suggestions for further research are offered.

Fintech Impact on EU Retail Savings and Investment

2018 ◽  
pp. 99-152 ◽  
Author(s):  
Manuel Gutierrez
Keyword(s):  
Interest Rates ◽  
Financial Institutions ◽  
Business Models ◽  
Debt Crisis ◽  
Banking System ◽  
Risky Assets ◽  
Bank Deposits ◽  
Political Events ◽  
The Impact ◽  
The Eu

Years after the 2007-2009 financial crisis and European debt crisis, the European Union's (EU) banking system sustained persistent strain due to those two shocks, austerity and economic contraction, political events, poor banking operations, enhanced regulation, and litigation. The European Central Bank's response was significant: short-term interest rates collapsed and markets were flooded with money via quantitative easing programs. Consequently, investors fled risky assets for the safety of government debt. Yet as banks recovered, savers sacrificed asymmetrically: yields on bank deposits and bonds were decimated. As macroeconomic challenges subsided, Fintech increasingly threatened legacy financial institutions' business models to the benefit of the EU savings public. This study assesses the impact by Fintech companies on legacy banks in the EU with respect to savings, lending, and wealth management. This study also assesses and makes recommendations on a strategy by Fintech to benefit savers, and the measures legacy institutions must take to survive amidst this new competitive landscape.

scholarly journals Reasons for low patronage of microfinance banks by women entrepreneurs in nigeria

2020 ◽  
Vol 10 (4) ◽  
pp. 1-6
Author(s):  
Ademola A.O ◽  
Adegboyegun A.E ◽  
Kazeem B.L.O ◽  
Akanbi T.A
Keyword(s):  
Factor Analysis ◽  
Interest Rates ◽  
Rural Areas ◽  
Women Entrepreneurs ◽  
Positive Relationship ◽  
Economic Conditions ◽  
High Interest ◽  
South West ◽  
And Performance ◽  
Recovery Methods

That microfinance banks are established to improve the socio-economic conditions of women especially in rural areas is a well-known fact, however in recent times, women entrepreneurs in Nigeria are no longer patronizing Microfinance banks like before. This calls for a research into factors responsible for low patronage of Microfinance banks by women entrepreneurs in South West Nigeria. The study employed Average Gross Turnover, Factor Analysis, Goodman and Kruskal’s gamma statistics to evaluate the effect of Microfinance banks on performance of women entrepreneurs and to determine the reasons for low patronage of Microfinance banks by women entrepreneurs. The result showed that weak but positive relationship exist between Microfinance banks and performance of women entrepreneurs. It was also observed that harsh loan recovery methods, high interest rates, short repayment periods and high charges imposed on customers are major reasons for low patronage of Microfinance banks by women entrepreneurs in Nigeria. It is recommended that Microfinance banks should reduce their interest rates drastically and lengthen the repayment periods so as to encourage women to patronize them more and to improve their performances.

scholarly journals Research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine

2018 ◽  
pp. 46-59
Author(s):  
Nataliia Tkachenko ◽  
Oleksandr Momot
Keyword(s):  
Principal Components Analysis ◽  
Principal Components ◽  
Structural Changes ◽  
Methodological Approach ◽  
Banking System ◽  
Financial Economic ◽  
Aggregate Index ◽  
Components Analysis ◽  
The Impact ◽  
Legal Entities

The article examines the impact of banks performing operations involving transnational banking capital on the banking system of Ukraine through the use of the principal components analysis. This approach is related to the method of multidimensional statistical analysis and is widely used to reduce the dimension of an analyzed set of attributes, and to select the most informative indicators and classification features. From the research, it is found that the principal components analysis is based on the idea according to which structural properties of relations between variables can be determined by their dependence on fewer non-measureable (concealed, latent, hypothetical) general factors. The direct estimation of the impact of banks performing operations involving transnational capital on the banking system of Ukraine is carried out by means of the application package named Statistica. For this analysis, the following relative indicators showing how Ukraine’s banks perform operations involving transnational capital are used: 1) percentage of funds raised from legal entities; 2) percentage of funds raised from individuals; 3) percentage of owned capital; 4) percentage of profit / loss after tax; 5) percentage of assets; 6) percentage of loans and debts of legal entities; 7) percentage of loans and debts of individuals. Based on the research findings, it is shown that there are three principal components which take into account more than 5% of total variance. However, there is only one component among them the value of which exceeds 1. The second component equals 0.954179, meaning that it approaches 1. The scree plot shows that the breaking point can be viewed as the eigen-value of correlation matrix which equals 23.85%. Consequently, the two principal factors have an essential impact on the processes of foreign capital penetration into Ukraine. It is claimed that the expansion of transnational banking capital into the banking system of Ukraine is controversial. On the one hand, these trends are quite obvious. On the other hand, financial, economic, military, and political instability hampers such processes. In conclusion, it should be stressed that unlike other approaches, the research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine, is based on the principal components analysis. This makes it possible to develop an aggregate index which characterizes the impact of banks performing operations involving transnational capital on the banking system of Ukraine, and to use it for monitoring of structural changes in the banking system.

2008 Economy Results: The End of the "Fat" Years

2009 ◽  
pp. 4-25 ◽  
Author(s):  
B. Zamaraev ◽  
A. Kiyutsevskaya ◽  
A. Nazarova ◽  
E. Sukhanov
Keyword(s):  
Economic Crisis ◽  
National Economy ◽  
Banking System ◽  
Housing Markets ◽  
Transmission Mechanism ◽  
Economic Conditions ◽  
Basic Change ◽  
Russian Economy ◽  
The World

The article analyzes the current economic conditions in Russia. Succession, distribution and the transmission mechanism of the world financial and economic crisis to the Russian economy are considered in this article as well as the changes in the banking system, share and housing markets. Production, consumption and investment on the boundary of 2008-2009 are described. The conclusion about the basic change of conditions of national economy development is presented.

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