scholarly journals Analyzing the Structural Changes in the Credit Performance Indicators of Banks of Ukraine

2020 ◽  
Vol 9 (512) ◽  
pp. 228-238
Author(s):  
M. S. Rakhman ◽  
◽  
O. M. Haltseva ◽  
Keyword(s):  
Financial Services ◽  
Structural Changes ◽  
Swot Analysis ◽  
Banking System ◽  
Current Status ◽  
Mathematical Functions ◽  
The Status ◽  
Legal Forms ◽  
Banking Institution ◽  
The Impact

The revenue part of the banking institution is formed mainly due to the volume of credits provided and depends on the conditions of crediting the financial services market participants. Consequently, the insufficiency or inaccessibility of credit resources adversely affects the status of the entire economy. The article is aimed at an economic and statistical analysis of the current status of credit activity of the banking system of Ukraine in the dynamic conditions of development of the national economy, identifying tendencies, substantiating the prospects for expanding and reducing the risks of credit activities of banking institutions. The role and tasks of the bank’s credit operations in the country’s economy are considered; the status of the credit portfolio of the banking system in recent years is characterized; a new redistribution of banks to groups by the structure of authorized capital and the size of assets is provided. An analysis of the volumes and structure of the banks’ assets in terms of organizational and legal forms of ownership (public, private, foreign) and the proportion of credits in the structure of assets is carried out. The authors analyze changes in the total volumes and dynamics of crediting in terms of: crediting entities; national and foreign currencies; dynamics of the exchange rate and the structure of crediting by type of activity. The impact of seasonality of credit provision is identified. An assessment of the number, structure and volumes of crediting by non-financial credit institutions is provided. The predictive models are developed using different mathematical functions and statistical methods. As a result of the carried out SWOT-analysis, the main problems and shortcomings of the banking system are identified. A project of recommendations on reducing credit risks is proposed.

scholarly journals FINANCIAL CONDITION OF THE BANK IN THE SECTION OF THE REFORMING OF THE BANKING SYSTEM OF UKRAINE

2017 ◽  
pp. 122-129
Author(s):  
Ilona Semencha ◽  
Oleksii Pysmennyi
Keyword(s):  
Structural Changes ◽  
Banking Sector ◽  
Banking System ◽  
Regulatory Requirements ◽  
Financial Condition ◽  
Reform Program ◽  
Systemic Risks ◽  
Banking Institutions ◽  
Banking Institution ◽  
The Impact

The urgency of the study is connected with the structural changes in the economy, in particular in the banking system, which have a decisive influence on the functioning of banking institutions and on the results of their activities. During the 2014-2017 years, the banking sector was cleaned up from participants who were not able to comply with the regulatory requirements of the regulator, due to which the study of this topic is of such interest. The article summarizes the main tasks of recent economic reforms in Ukraine. The impact of these reforms and their implementation tools in the country on the activities of individual banks is studied. The analysis is conducted on the example of assessing the financial condition of JSC "Ukreximbank" as systemically important and bankruptcy or inappropriate functioning of which may create systemic risks for the financial system of the country. The possibility of a separate bank to fulfill the tasks set during the reforming is determined. The results show that significant changes in the financial position of the banking institution occurred during the transition from the requirements of one reform program to another. The study of this issue should continue in order to establish the feasibility and possibility of introducing certain tasks in the reform of the banking sector of Ukraine.

Disintermediation of banks in a developing economy

2019 ◽  
Vol 45 (2) ◽  
pp. 222-243 ◽  
Author(s):  
Tahseen Mohsan Khan ◽  
Syed Kumail Abbas Rizvi ◽  
Ramla Sadiq
Keyword(s):  
Design Methodology ◽  
Structural Changes ◽  
Banking System ◽  
Causality Test ◽  
Correction Model ◽  
Content Type ◽  
Balance Sheets ◽  
Panel Regressions ◽  
The Impact ◽  
Major Hypothesis

Purpose The purpose of this paper is to investigate how Pakistani banks manage their portfolios (lending vs investment) when the economic indicators are not supportive. This study investigates three aspects of the banking system in Pakistan – prevalence of disintermediation, post-crisis profitability orientation and depositor protection by financial system in unfavorable conditions. Design/methodology/approach This study is limited to identifying the key economic and financial drivers behind disintermediation and its subsequent impact on banks’ profitability and depositors’ protection. GLS panel regressions and Engle–Granger causality test as specified by the error correction model have been used to test the major hypothesis of this study. Findings This study shows that small banks have been shifting major part of their portfolios toward risk-free investments to be able to maintain their profitability more efficiently and effectively, like large banks. The study also observes that significant pairing causality exists between gross credit loans and investments confirming disintermediation hypothesis for all types of banks except Islamic or Sharia compliant banks, whereas for significant pairing causality, the results are mixed for remaining variables among gross credit loans as a proportion of assets and economic variables that include GDP growth, unemployment, KSE-100 and SBP policy rate. It is also confirmed by the results that disintermediation improves banks profitability and depositor protection, thus providing a good rationale and justification to banks for opting it. Originality/value The study focuses on the impact of structural changes in portfolios only of commercial banks’ revenue-generating assets not including other financial institutions as a part of banking system. Furthermore, data are extracted from balance sheets and is the sole property of corresponding author.

Strategy war games: how business can outperform the competition

2018 ◽  
Vol 39 (6) ◽  
pp. 3-12 ◽  
Author(s):  
Jason West ◽  
Maiko Chu ◽  
Lincoln Crooks ◽  
Matthew Bradley-Ho
Keyword(s):  
Financial Services ◽  
Business Strategy ◽  
Joint Venture ◽  
Corporate Strategy ◽  
Insurance Company ◽  
Content Type ◽  
External Threats ◽  
Internal Capabilities ◽  
Banking Institution ◽  
The Impact

PurposeBusiness wargames represent an alternative approach to challenge organisations to uncover internal capabilities through competitive actions designed to counteract external threats and address strategic mismatches. Internal capabilities uncovered as a result of actions taken during a competitive wargame aims to replicate market conditions found in competitive industries. These outcomes are difficult to achieve using many popular strategy design methods. The purpose of this study is to examine the use of war game-style activities in formulating corporate strategy that incorporate the natural behaviors of the leadership team in creating strategic plans.Design/methodology/approachUsing a case study from the banc assurance industry, the authors review a wargame process composed of two competing teams; the banc assurance organisation and an unincorporated joint venture between a banking institution and an insurance company. The goal of each entity was to develop strategy to improve both customer satisfaction and market share at the expense of each other given a finite set of resources. Success was judged using a simple set of metrics defined by both a consumer team and an independent umpire.FindingsConsumers of financial services are price sensitive and highly brand loyal. Unwillingness to switch brands to a prevailing competitor or other emerging (Fintech) institution persists to a threshold of a price and/or value differential of 15 to 20 per cent. The results highlight potential deficiencies in the proposed banc assurance strategy through the observation of customer behaviours and inefficient resource use.Originality/valueThe wargame approach conducted in a realistic landscape revealed internal capabilities not otherwise evident. The impact of authentic human behaviours in setting business strategy was captured which is very difficult to replicate using more formal scenario analysis and planning.

Temporal changes in an alligator snapping turtle (Macrochelys temminckii) population

2013 ◽  
Vol 40 (1) ◽  
pp. 77 ◽  
Author(s):  
Mitchell B. East ◽  
J. Daren Riedle ◽  
Day B. Ligon
Keyword(s):  
Management Practices ◽  
Unknown Origin ◽  
Current Status ◽  
Macrochelys Temminckii ◽  
The Status ◽  
Management Recommendations ◽  
The Impact ◽  
Term Monitoring ◽  
Term Data

Context Monitoring populations of long-lived species requires continuous long-term efforts. This is especially applicable for species that have experienced declines range-wide. Aims Our study assessed the current status of a population of wild Macrochelys temminckii and compared the present results to those from a survey conducted nearly a decade ago. Methods Trapping in 2010–2011 was conducted on two creeks within the refuge, during the months of May–July. Capture data were compared with data collected by similar methods in 1997–2001. Key results The population structure of M. temminckii was dominated by juveniles, with few large adults or small juveniles detected and a missing size class was evident. Retrospective analysis of 1997–2001 data revealed that the population was likely to be in decline even then, despite high capture rates. Conclusions The M. temminckii population showed significant declines that indicated that the population had experienced stressors of unknown origin. The status of M. temminckii at the refuge is concerning, given the protection afforded this remnant population. Implications Short-term data from 1997–2001 indicated a healthy M. temminckii population, whereas longer-term data showed that the population has declined, resulting in significant demographic changes. Continued monitoring will be necessary to develop management recommendations and track the impact of implemented management practices. Longer-term monitoring of long-lived vertebrates is required to identify population trends.

scholarly journals EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

scholarly journals Banking system of the country: Elements, functions and potential in ensuring economic growth

2020 ◽  
Vol 23 (10) ◽  
pp. 54-67
Author(s):  
Marta Barna ◽  
Nadiya Ruschyshyn
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking System ◽  
Structural Features ◽  
Economic Security ◽  
Original Position ◽  
Institutional Economic ◽  
Definition Of

The banking system plays an important role in the development and functioning of the country’s economy. The purpose of the study was to investigate and summarise the content of the banking system, considering its elements, functions, and potential for economic growth. During the research the following methods were used: theoretical generalisation, system approach, abstract-logical, and logical-analytical. The study examines the statements of scientists on the definition of the banking system from the standpoint of its legal basis and content. The composition of the elements of the banking system is considered in view of the objectively existing integration processes. It was emphasised that it is appropriate to consider the aspect of globalisation when generalising the essential, as well as the criterial features of the banking system. A study on the institutional and institutional-economic approaches to the functioning and development of the banking system. It was determined that the banking system is a sphere of procurement of a number of financial services and through its functioning and development effective levers of regulation are acquired. The study noted the features of the banking system must include the parameters of liquidity and financial stability, sufficient capitalisation, profitability, protection from internal and external risks and threats, financial and economic security, adaptability to the global, and macroeconomic environment. It is advisable to consider such structural features as the ratio of internal and external banking capital, the ability to develop in accordance with modern requirements in terms of information technology progress, information society, and digitalisation of business communications in generalising the essential features of the banking system. Further clarification of the criteria of the banking system will make provision for their identification at the level of each of its elements. The functions of the banking system were identified and generalised. The composition of the applied approaches to the essence of the banking system were expanded and supplemented with structural, security, and strategic ones. The integration of existing and new views on the concept, structure, functions, and role of the banking system in the economy allowed to develop an original position on the content of the concept of the banking system. Structural changes in the country’s economy have a significant impact on the functioning of the banking system. This, in turn, requires the identification of priority areas for structural reform of both the economy as a whole and the banking system, which, in fact, will be the subject of further research

A review of literature directions regarding the impact of fintech firms on the banking industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haitham Mohamed Elsaid
Keyword(s):  
Financial Services ◽  
Banking Industry ◽  
Banking System ◽  
Advanced Technology ◽  
Review Of Literature ◽  
Strategic Partnerships ◽  
Research Papers ◽  
Content Type ◽  
Fruitful Research ◽  
The Impact

Purpose This paper aims to provide a review of literature directions regarding the potential impact of fintech operators on the financial services market globally. This paper reviews the literature to identify possible benefits or challenges that fintech firms can have for the traditional banking system. Design/methodology/approach This paper is based on a review of published research papers related to fintech and digital finance. The Scopus database, SSRN database and google scholar were used to find relevant research papers. The final sample included impactful papers about the effect of fintech activities on the banking and financial services industry. Findings The current paper indicated that while fintech firms would take some market share away from banks, it is not expected that fintech firms would substitute banks. However, banks are required to accelerate their adoption of innovations and advanced technology to compete with fintech firms. It is also proposed that strategic partnerships and cooperation could happen between banks and fintech companies in a way that benefits both sides. Originality/value The present paper adds to the understanding of the effect of the fintech firms’ growth on the banking industry in light of the emerging opportunities and threats for the financial sector. The paper also provides guidance for fruitful research on the impact of fintech activities on social and economic welfare in the future.

scholarly journals The Impact of Political Events - “Name Issue” on an Emerging Macedonian Stock Market

2011 ◽  
Vol 1 (2) ◽  
pp. 203 ◽  
Author(s):  
Julijana Angelovska
Keyword(s):  
European Union ◽  
Structural Changes ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Candidate Country ◽  
The European Union ◽  
Political Events ◽  
Before And After ◽  
The Status ◽  
The Impact

The objective of the research is to investigate the impact of political events – “name issue” on the Macedonian Stock Exchange (MSE). Structural changes in volatility of Macedonian capital market seems to be more a consequence of political changes, especially from the perspective of international politics and the association of the country into NATO and the European Union. The research analyzes the response of capital markets to political events. Such an event is the summit in Bucharest as the day D (03/04/2008) which certainly had an impact because of prolonged unresolved problem of the name imposed by Greece. Visa liberalization and the day of solving the status of candidate country for accession to the European Union will be discussed too. An event methodology is employed, and the results suggest that the market respond to all political events connected “name issue”. The results also indicate that there is no difference between the means of abnormal returns before and after the event. Sensitivity of the Macedonian investor related to any information connected to the word "name" is enormous. The Macedonian investor belief is that if “name” issue would be solved, regardless of possible negative real economic flows stock exchange will increase. The paper provides information regarding the effects of solving this name issue on Macedonian investor, and his expectation on this issue. But even if it is solved, the global economic crises and difficult economic situation in Macedonia especially this situation will be temporary and due to low liquidity, foreigners may use local optimism to sell their shares.

scholarly journals Problem Credit Debt of Ukrainian Banks: Current Status and Ways to overcome it

2020 ◽  
Vol 23 (1) ◽  
pp. 37-43
Author(s):  
Nelia Volkova ◽  
◽  
Diana Vinhora ◽  
Keyword(s):  
Interest Rates ◽  
Statistical Data ◽  
Banking System ◽  
Practical Significance ◽  
Current Status ◽  
Credit System ◽  
Current State ◽  
Business Entities ◽  
Domestic Banks ◽  
Banking Institution

Introduction. The article is devoted to the study of problem about credit indebtedness of Ukrainian banks at the present stage and to identifying ways to overcome it. The article analyzes the loan portfolio of Ukrainian banks during 2014-2020. For the last five years, the banking system of Ukraine has been developing in the conditions of military conflict and permanent political and economic crisis. After the occupation of the Autonomous Republic of Crimea and certain regions of Donetsk and Luhansk, domestic commercial banks lost part of their assets that remained in the occupied territories. These events forced the National Bank of Ukraine to take measures to stabilize the credit system, which led to the withdrawal of a large number of insolvent banks from the market. Purpose. The purpose of the study is to analyze the current state of credit debt problem of Ukrainian banks and to identify ways to neutralize it. Results. Based on statistical data, the dynamics of individual assets of Ukrainian banks, characterized by the discount rate as the main deterrent to lending, certain factors influencing the emergence of problem loans in a banking institution. Statistical data on the volume of lending to banking institutions by business entities and individuals in Ukraine are presented and analyzed. Based on the analysis, the main factors of increasing creditworthiness are investigated. Based on world experience, we offer ways to overcome the problematic team of domestic banks in the rear stabilization of the credit system. Conclusions. The conducted research confirmed the theoretical expediency and practical significance of the analysis of the current state of credit indebtedness problem of Ukrainian banks, which allows to determine the ways of its neutralization. The assessment of some indicators of banks’ activity revealed a number of factors that negatively affect the work with problem loans, namely: reduction in the number of banks (in particular, banks with foreign capital), reduction in lending, which is directly related to rising interest rates on loans, real incomes, the devaluation of the national currency and more. Each bank must develop a set of measures applicable to a particular category of problem loans, work out algorithms for the interaction of units in the event of certain signs, options for behavior depending on the degree of effectiveness of the measures applied. Implementation of the proposed banks in practice measures to reduce bad debts will be the subject of our further study.

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

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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