ANALYSIS OF THE STATE OF FINANCIAL STABILITY OF THE UKRAINIAN BANKING SYSTEM AS COMPONENT IN PROVISION OF FINANCIAL SECURITY

Annotation. Introduction. Permanent financial crises, currency fluctuations, inflation expectations, intensification of competition, increasing regulatory requirements for bank capital and risk reserves, military-political instability, globalization processes - all this is pressure for a stable financial condition of the banking system. Given the Anglo-Saxon structure of the financial market of Ukraine, banks are in fact the only internal source of capital for individuals and legal entities, which determines the importance of the impact of the banking system on the financial security of the state. In the conditions of dynamism of the modern world the question of preservation of reliability and efficiency of the modern bank becomes more and more actual. The issue of crisis prevention, threats, risks is given considerable attention in world practice, which is due to the need to maintain public confidence in banking institutions. The resilience of the banking system and its members to internal and external threats cannot be ensured without effective tools for control and influence by the regulator. The state is directly responsible for ensuring not only the stable development of the banking services market, but also the effective functioning of all components of the financial system. Timely analysis of indicators of financial stability of the banking system allows to identify the main problems in the activities of domestic banks and identify areas for their elimination, which will ensure the stability of economic development of the state. Purpose. The purpose of the article is to clarify the essence of the concepts of "financial stability of the banking system" and "financial security of the state", as well as to determine the relationship between financial stability of the banking system and financial security of the state. Results. It is determined that assessing the financial stability of the banking system is an important strategic task to ensure the financial security of the state. The interconnectedness and the place of financial stability of the banking system among such categories as stability, security, efficiency and reliability are substantiated. As a result of the calculation, the place of the banking component in the general structure of the financial security of the state was clarified. The analysis allowed to systematize the main threats to the financial security of the state, the source of which are the factors of the banking sector

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ASSESSMENT OF FINANCIAL SECURITY OF THE BANKING SYSTEM OF UKRAINE

Scientific Herald of Kherson State University Economics Sciences ◽

10.32999/ksu2307-8030/2020-40-9 ◽

2020 ◽

pp. 51-58

Author(s):

Davydenko N. ◽

Kolodiazhna V.

Keyword(s):

Financial Stability ◽

Banking Sector ◽

Banking System ◽

The State ◽

Financial Security ◽

Monetary System ◽

Characteristic Features ◽

The Stability ◽

Financial Monitoring ◽

High Level

Today, the basis of financial security of the state is to ensure the stability and security of the banking system, because the decline in confidence in banks causes damage to the financial security of the whole country. The purpose of the article is to study the essence of financial security of the banking sector and develop proposals for its strengthening based on an assessment of the state of the banking sector at this stage of economic development. The primary tasks of the banking system are the stabilization of the monetary system of the state, the accumulation of financial resources of society, ensuring the stability of the national currency, which together have a signi-ficant impact on its financial security. That is why it is necessary to determine the state of the banking sector of the state in terms of its ability to withstand internal and external negative factors in the banking process. Therefore, the state of financial security of the banking system is subject to constant analysis, especially in our time, due to the difficult military-political situation and economic instability in the country, which has negatively affected the activities of commercial banks. The article presents the main indicators of the banking sector of Ukraine during 2014–2019, which provide an opportunity to analyze trends in its state under the influence of internal and external factors. The main characteristic features of the banking system of Ukraine in the conditions of modern challenges are determined. According to the results of the analysis, it can be stated that the state of the banking system of Ukraine is quite unstable, primarily due to the change in the structure of the banking sector and the fact that Ukraine is on the way to overcoming the crisis of the banking system. As a result of the research, measures have been identified to ensure the stability of the banking sector and increase the level of financial security of the banking system. It is established that in order to further ensure the stability of the financial security of the banking system of Ukraine at a high level, considerable attention should be paid to improving the banking management system and tools of state financial monitoring of the banking sector.Keywords: financial security, state, banking system, solvency, financial stability. У статті визначено сучасні підходи до визначення сутності фінансової безпеки банківської системи держави, як основної складової її економічної системи. Визначено основну мету підтримки фінансової безпеки банку та структуру банківського сектору держави в розрізі його платоспроможності. Здійснено оцінку основних показників діяльності банківського сектору держави та проведено аналіз сучасного його стану протягом 2014–2019 рр. на основі офіційної статистичної інформації Національного банку України. Визначено вплив націоналізації ПАТ «Приватбанк» та обґрунтовано основні її наслідки для державної частки банківського сектору. Охарактеризовано ефективність функціонування банківської системи України, а також вплив банківської реформи на нівелювання наслідків кризи банківської системи.Ключові слова: фінансова безпека, держава, банківська система, платоспроможність, фінансова стійкість

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STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

International scientific journal Internauka Series Juridical Sciences ◽

10.25313/2520-2308-2020-11-6535 ◽

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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The Threats of Ukraine Financial Security: Identification and Systemization

ЕКОНОМІКА І РЕГІОН Науковий вісник ◽

10.26906/eir.2019.2(73).1629 ◽

2019 ◽

pp. 73-80

Author(s):

Oleksandra Maslii ◽

Andrii Maksymenko ◽

Svitlana Onyshchenko

Keyword(s):

Financial Stability ◽

System Development ◽

Financial System ◽

Economic Security ◽

The State ◽

Financial Security ◽

Monitoring And Control ◽

Development Indicators ◽

Security Indicators ◽

And Control

Place of monitoring and control of risks of financial stability of the state in the system of ensuring financial security of the state was substantiated. Methods of identifying threats to Ukraine's financial security through the current and strategic analysis of financial system development indicators were considered. Tendencies of economic development of Ukraine in the context of revealing sources of threats to financial stability of the state were analyzed. Dynamic analysis of the actual values of the financial security indicators of Ukraine as a whole and its separate components had been carried out. Threats to Ukraine's financial security were identified based on comparative and trend analysis. Reasons for the critical state of debt, banking and monetary security in the financial structure and the preconditions for the emergence of systemic threats had been investigated. Systematization of risks and threats to Ukraine's financial security by its components had been carried out. Influence of systemic threats in the financial sphere on the economic security of the state was generalized. International experience of monitoring financial stability of the state was analyzed. Additional risks to the national financial system are associated with the globalization and digitization of the state financial system that are not taken into account by valid methodological recommendations for calculating the level of economic security of Ukraine were highlighted.

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DIAGNOSIS OF THE LEVEL OF FINANCIAL DECENTRALIZATION OF LOCAL BUDGETS ON THE BASIS OF INTEGRAL EVALUATION

Pryazovskyi Economic Herald ◽

10.32840/2522-4263/2021-3-16 ◽

2021 ◽

Author(s):

Yurii Puhach

Keyword(s):

Financial Stability ◽

Local Level ◽

The State ◽

Financial Resources ◽

Financial Security ◽

Regional Strategies ◽

Self Development ◽

Decentralization Reform ◽

Objective Description ◽

Functional Components

The process of implementing socio-economic change at the local level is closely linked to administrative reform and financial decentralization as important tools for regulating and allocating budget funds. Problems of reforming the administrative-territorial system, the formation of budgetary policy of the regions with the expansion of powers should be based on the development of regional strategies and a comprehensive analysis of financial resources. Approaches to the economic analysis of the efficiency of the allocation of financial resources in the context of decentralization reform are becoming increasingly important. The analysis of individual indicators somewhat narrows the perception of economic processes and does not allow to assess the level of provision of funds of administrative-territorial units by areas and in general. The issues of improving the methods and tools for assessing the financial resources of local budgets in the context of decentralization are becoming important. The article proposes improved approaches to the analysis of the level of financial decentralization of local budgets on the basis of aggregate indicators by areas. The technique allows analyzing the state of resource-functional components over time. The application of integrated assessment contributes to the objective characterization of the level of financial security of the regions, the revision and development of economic opportunities in the context of limited resources of local budgets. The proposed approach contributes to the formation of an objective description of the level of financial security of the region, and hence the financial opportunities for self-development. The methodology reveals the state of resource-functional components, the dynamics of deviations of integral values, allows monitoring of quantitative benchmarks to achieve the desired level of financial stability of regions and allows focusing on objective reasons for real financial decentralization in Ukraine. The results of the analysis focus on the assessment of regional development trends in the context of financial decentralization and form the need for further research in this direction.

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Diagnostics of the State of Agricultural Enterprises Financial Security

Accounting and Finance ◽

10.33146/2307-9878-2021-1(91)-52-60 ◽

2021 ◽

pp. 52-60

Author(s):

Olha Kovalenko ◽

◽

Liudmyla Yashchenko ◽

Keyword(s):

Financial Stability ◽

Negative Impact ◽

Methodological Approach ◽

Developed Countries ◽

The State ◽

Financial Security ◽

Net Income ◽

Scoring Method ◽

Agricultural Enterprises ◽

Analysis Of Dynamics

In the conditions of rapid changes in the modern market environment, it is extremely important for agricultural enterprises to respond in a timely manner to threats to their financial security. Therefore, economic diagnostics is of significant methodological importance, and makes it possible to learn about economic problems and interpret the results of enterprises activity that have certain deviations from the norm or the state required for the enterprise. The subject of the study is a set of theoretical, methodological and practical aspects of diagnosing the state of financial security of enterprises. The purpose of the article is to diagnose the state of financial security of agricultural enterprises on the basis of the proposed methodological approach and to substantiate proposals for its improvement. The methodological basis of the diagnostics used in the study was: methods of theoretical generalizations, financial analysis, scoring method, analysis of dynamics and structure, linear programming. The article reveals the tasks and areas of management of Ukrainian agricultural enterprises with an emphasis on the protection of their specific financial interests – ensuring liquidity, solvency, financial stability, autonomy and others. For research purposes all Ukrainian agricultural enterprises were classified on the size of the net income. The system of indicators for diagnostics of financial security of the agricultural enterprises was offered. The basic structural elements of the mechanism of financial security management were substantiated. According to the diagnosis results, it was found that the state of financial security of large enterprises in 2018-2019 has deteriorated and it has had a negative impact on their solvency. Instead, the financial security of small and medium-sized enterprises has improved. Based on the experience of developed countries, proposals for public policy instruments to promote financial security of agricultural enterprises were proposed.

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CHARACTERISTICS OF THE FINANCIAL SECURITY OF THE BANKING SECTOR IN THE REGION (ON THE EXAMPLE OF THE REPUBLIC OF KOMI)

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.05.02.017 ◽

2021 ◽

Vol 2 (5) ◽

pp. 98-108

Author(s):

M. S. KYZYUROV ◽

Keyword(s):

Banking Sector ◽

Banking System ◽

The State ◽

Financial Security ◽

The Republic

The article presents the characteristics of the financial security of the regional banking sector, examines the threats to the financial state of the banking system in the region. The author's methodology for conducting a point assessment of financial security is proposed, based on the indicative method and the use of the nor-malizing function, as well as the distribution of ratings depending on the points awarded for six security zones. The method is tested on the example of the Republic of Komi. Significant threats to the financial security of the region have been identified, and recommendations for their elimination have been proposed. The meth-odology is proposed to be used when the state authorities and the Bank of Russia monitor the state of the banking sector in the region.

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Financial security of a small open economy in conditions of globalization as a requirement for economic growth

Journal of Management and Financial Sciences ◽

10.33119/jmfs.2019.37.1 ◽

2019 ◽

pp. 9-24

Author(s):

Piotr Komorowski

Keyword(s):

Economic Growth ◽

Open Economy ◽

Financial Stability ◽

Small Open Economy ◽

Economic Security ◽

The State ◽

Financial Security ◽

Special Significance

In the conditions of the globalization of economies the issue of financial stability, which is a condition for the economic security of the state, has acquired a special significance. The aim of the article is to determine the importance of the role of financial stability for maintaining economic security and economic growth and to validate the role of the Safety Network Institution in maintaining stability.

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PROSPECTS FOR ENSURING THE FINANCIAL SECURITY AND STABILITY OF THE BANKING SYSTEM OF AZERBAIJAN USING THE PRINCIPLES OF THE BASEL ACCORD (BASEL II)

Vestnik of Polotsk State University. Part D. Economic and legal sciences ◽

10.52928/2070-1632-2021-56-5-2-4 ◽

2021 ◽

pp. 2-4

Author(s):

T. Garayev

Keyword(s):

Financial Stability ◽

Banking System ◽

Basel Ii ◽

Financial Security ◽

Basel Accord

The article discusses some aspects of the application of the developed Basel II principles to improve measures to ensure financial stability and security of the banking system of Azerbaijan. The advantages of using this agreement and the effectiveness of its application within the banking system of Azerbaijan are considered.

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Formation of a Mechanism for Ensuring the Financial Security of the Bank

Modern Economics ◽

10.31521/modecon.v25(2021)-11 ◽

2021 ◽

Vol 25 (1) ◽

pp. 73-78

Author(s):

Raisa Kvasnytska ◽

◽

Inna Dotsenko ◽

Dmitrii Prystupa ◽

◽

...

Keyword(s):

Financial Stability ◽

Banking System ◽

Financial Security ◽

Investment Funds ◽

Investment Activity ◽

Banking Services ◽

Low Level ◽

External Threats ◽

Banking Institution ◽

The Impact

Annotation. Introduction. The current situation in the market of banking services is due to the influence of internal and external factors that make the bank vulnerable to crises. The financial security of the bank is the key to its stable development, so its research is extremely important. The priority of ensuring the financial security of the bank necessitates a comprehensive approach by developing an appropriate mechanism to ensure the financial security of the bank, taking into account the impact of external and internal threats. Purpose. The purpose of the work is to develop elements of the mechanism for ensuring the financial security of the bank, taking into account internal and external threats. Results. Theoretical problems of the mechanism of financial security of the bank are considered. Based on a critical analysis of the economic literature, the author’s interpretation of the concept of “mechanism for ensuring the financial security of the bank” from the standpoint of the impact of internal and external threats. The purpose and tasks of the mechanism of ensuring the financial security of the bank are highlighted. It is proposed to divide the functions of the bank’s financial security mechanism into basic and specific functions, those that are inherent in banking. The principles of ensuring the financial security of the bank are highlighted. It is substantiated that the process of forming the mechanism of ensuring the financial security of the bank is complex and should take into account the impact of internal and external threats. The threats affecting the financial security of commercial banks are ranked, with their division into internal and external. The main threats to the external environment are: global or local financial crises; falling demand for loans and banking services; the level of distrust on the part of legal entities and individuals in the banking system; refinancing volumes and the size of the discount rate; low level of investment activity in the country, and consequently the lack of investment funds. The main internal threats to the bank’s financial security are: errors in strategic planning and forecasting; irrational use of the bank’s potential; low level of return on assets. The stages of the mechanism of ensuring the financial security of a banking institution on the basis of taking into account the impact of internal and external threats have been formed. Conclusions. Based on the proposed stages of the mechanism of financial security of the bank, taking into account the impact of internal and external threats, we can trace all possible options for using strengths and opportunities in developing a strategy for financial stability of the bank, as well as identify factors influencing the bank. Keywords: threats, internal threats, external threats, collateral, mechanism, financial security of the bank, functions of the mechanism, principles of the mechanism, subjects and objects of the mechanism.

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