scholarly journals Key Problems of Capitalization of the Banking System of Ukraine and Directions of its Growth

2021 ◽  
Vol 5 (520) ◽  
pp. 327-333
Author(s):  
D. M. Hladkykh ◽  
Keyword(s):  
Banking System ◽  
Optimal Level ◽  
The State ◽  
Current Status ◽  
Regulatory Capital ◽  
Absolute Size ◽  
Capital Growth ◽  
Investment Structure ◽  
Banking Institutions ◽  
Main Components

The article is aimed at studying the current status, structure and dynamics of the main components of the capital of the banking system of Ukraine, the key problems that hinder the growth of its capitalization, and substantiating on this basis the key directions of further recapitalization of banks. The main problems associated with the process of capitalization of the banking system of Ukraine are defined as: insignificant absolute size and unsatisfactory dynamics of indicators of both the own and the regulatory capital of the banking system in general; unbalanced structure of the statutory capital of the banking system due to the dominance of banks with the State participation therein; non-investment structure of the equity of banking institutions, which is manifested in the dominance of its indicator of the statutory capital, the size of which in many banks exceeds the amount of equity; spread of the COVID-19 pandemic in the world, which forced the State, represented by the NBU and the Verkhovna Rada, to weaken the requirements for banks on the schedule of capital increase. The key directions of recapitalization of the banking system of Ukraine are proposed, which should be: gradual dissolution of the banking system by selling shares of State-owned banks to institutional investors (both residents and non-residents) in order to reduce the total share of the State in the banking system to the optimal level; measures aimed at increasing the profitability of the banking system, taking into account the fact that profit is a key source of rapid capital increase; restoration by the banking system in the medium term of planned tasks and schedule of capital growth, which is a prerequisite for its further successful development, growth and modernization.

scholarly journals Operational control over the financial stability of banking

2020 ◽  
Vol 15 (1) ◽  
pp. 51-58
Author(s):  
Angela Kuznetsova ◽  
Borys Samorodov ◽  
Galyna Azarenkova ◽  
Kateryna Oryekhova ◽  
Maksym Babenko
Keyword(s):  
Credit Risk ◽  
Financial Stability ◽  
Control Charts ◽  
Banking System ◽  
Banking Regulation ◽  
Capital Adequacy ◽  
Operational Control ◽  
Regulatory Capital ◽  
Control Value ◽  
Banking Institutions

Maintaining proper financial stability of each banking institution is one of the main tasks facing the banking system of Ukraine. This enables operational control over the financial strength of banking activities.The purpose of the article is to develop recommendations on the operational control of financial stability of banking and to test them using banking institutions in Ukraine as an example.To execute operational control over the financial stability of banking, economic standards of banking regulation are grouped under the “at least” or “not exceeding” principle. To determine their change over time, Shewhart control charts are proposed.The recommendations were tested through the example of the Ukrainian banking institutions (with state, foreign and private capital). It was found out that in 2017–2019, the following three economic standards of banking regulations were not met: regulatory capital adequacy, high credit risk, and average investments; besides, there were two standards at the limit of control value: the ratio of regulatory capital to total assets and the maximum amount of credit risk per counterparty.To improve the financial status of banking institutions, it is recommended to take organizational and financial measures to change the average value of the relevant economic standards for banking regulation to a level that ensures financial stability.

دراسة وتحليل واقع هشاشة النظام المالي في العراق للمدة (2003-2018)

2021 ◽  
Vol 2021 (69) ◽  
pp. 164-187
Author(s):  
م. زياد ع عزالدين طه ◽  
أ.د. عماد محمد علي
Keyword(s):  
Banking System ◽  
Financial System ◽  
The State ◽  
Financial Fragility ◽  
Allocation Of Resources ◽  
Domestic Investment ◽  
Important Goal ◽  
Banking Institutions ◽  
State Potential ◽  
The Impact

The analysis of the reality of the financial fragility of the financial system especially the banking system side of it is recent and it has become an increasingly important goal in the context of macroeconomic policy-making especially its financial and monetary parts and among the reasons that have made attention towards the issue of the fragility of the financial system and that it has priority within The concerns of financial monetary and economic policymakers around the world are the need for sudden financing operations especially investment which necessitated the study and analysis of the impact of the state of the fragility of the financial system in Iraq on the state potential or ability of the country's financial and banking system to face the necessary financing operations especially domestic investment The fragility of the financial system expresses a state of deterioration and instability of the financial system whether the banking side of it (the financial and banking institutions) or the financial market side in a manner in which it does not perform its functions efficiently especially the allocation of resources directing them or making them ready for any sudden financing that could aid the economic situation in the country

scholarly journals ANALYSIS OF THE STATE OF CREDITING OF SMALL AND MEDIUM BUSINESS BY BANKING INSTITUTIONS OF UKRAINE IN THE CONDITION OF THE COVID-19 PANDEMIC

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 42-46
Author(s):  
KATERINA LARIONOVA ◽  
V. TANASIENKO ◽  
Keyword(s):  
Interest Rates ◽  
Negative Impact ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Bank Lending ◽  
The State ◽  
Current Crisis ◽  
Leading Position ◽  
Banking Institutions ◽  
Medium Enterprises

Access to financial resources, especially through bank lending, is an important factor in the development of small and medium-sized businesses. SMEs need such lending due to lack of own funds, income instability, accelerated movement of working capital, locality of resources and narrow markets. Bank credit occupies a leading position in the formation of financial and investment mechanism for SME development. In the current crisis caused by the coronavirus, banks must ensure maximum access of small and medium-sized businesses to credit resources. With the stabilization of the financial situation and the reduction of interest rates to the level of profitability of SMEs, banks’ interest in their lending will be accompanied by increasing competition in this area of banking business development. The article analyzes the state of lending to small and medium-sized businesses by banking institutions of Ukraine in the context of the coronavirus pandemic Covid-19. It is established that during 2018-2020 there was a declining trend in the bank lending to small and medium-sized businesses due to the negative impact of the pandemic on the activities of small and medium enterprises. The rating of the best conditions for lending to small and medium enterprises by Ukrainian banks in 2021 is analyzed and bank lending programs are considered. It is noted that as a result of the introduction of quarantine in 2020 and other restrictive anti-epidemic measures to prevent the spread of coronavirus, the banking system has changed somewhat. The amount of government assistance to small and medium-sized businesses in a pandemic and the features of the state program of business support “Affordable loans 5-7-9%” are considered.

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.

KASB Bank Limited: Capital Shortage

2018 ◽  
Vol 15 (1) ◽  
pp. 1-22
Author(s):  
Muntazar Bashir Ahmed
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Poor Quality ◽  
The State ◽  
Regulatory Capital ◽  
Loan Loss ◽  
Financial Status ◽  
Capital Shortage ◽  
Loan Loss Provisions ◽  
The Stability

KASB Bank Limited was a small sized bank in Pakistan. Its operations did not generate sufficient profits and over the years it was unable to meet the regulatory capital as specified by the State Bank of Pakistan. The bank’s loan portfolio was infected with poor quality borrowers and this resulted in very high non performing loans which required loan loss provisions. The bank sponsor had other group companies which the KASB Bank acquired in order to meet the capital needs. The State Bank as part of compliance with BASEL rules required higher amounts of capital to protect the banking sector and had allowed KASB Bank extra time to meet the capital needs. However, the State Bank ultimately used its regulatory authority to put the bank under its supervision. The State Bank placed KASB Bank under a moratoriam so that the KASB Bank customer deposits were frozen and only withdrawls up to PKR300,000 were allowed from each account. The State Bank wanted another bank to take over the KASB Bank operations and allowed other interested banks to conduct due diligence so as to review the financial status of the bank with a view to take over the troubled bank. There were very few banks interested in taking over because KASB Bank had negative equity estimated at PKR12 to PKR14 billion. The State Bank in order to protect the interests of the 150,000 depositors and the stability of the banking system gave a concessionary loan of PKR20 billion as part of the scheme of amalgamation of KASB Bank with Bank Islami.

scholarly journals NBU'S influence on economic growth through bank capital regulations

2020 ◽  
Vol 93 (8) ◽  
pp. 47-56
Author(s):  
L. Sus ◽  
◽  
Yu. Sus ◽  
M. Sapatsinsky ◽  
S. Cherepansky ◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Banking System ◽  
Developed Countries ◽  
Capital Adequacy ◽  
Necessary Condition ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Banking Institutions ◽  
The Impact

In crisis situations, stable and efficient functioning of banking institutions is a necessary condition for country’s economic growth. Capitalization is one of the important factors that creates a positive impact of the domestic banking system on economic development. The purpose of the study is to substantiate the patterns and differences in the strength and nature of the impact of capital adequacy requirements on the financial and economic development of countries. The key tasks include: research of capitalization indicatorsof the banking system of Ukraine; identification of the impact of bank capital adequacy on the financial and economic development of individual European countries and other highly developed countries. The research methods were: theoretical -study of foreign and domestic scientific literature, materials and publications, and empirical -measurement, comparison, grouping, rating, correlation and regression analysis.The article analyzes the essence of the concept of "bank capital" and identifies the peculiarities of its formation. The dynamics of equity and authorized capital of Ukrainian banks in recent years has been studied and the capitalization indicators of the banking system have been calculated. The structure of bank capital in terms of banking groups is presented. The share of equity of the largest banks in the banking system of Ukraine is calculated. The banks were grouped by the amount of capital in order to identify those banking institutions that need further additional capitalization. Prospects for the development of sources of growth of bank capital of state, foreign and private banks of Ukraine are analyzed and evaluated. The economic standards of the NBU (size of regulatory capital, adequacy of regulatory capital, adequacy of fixed capital) are characterized and the dynamics of regulatory capital indicators is presented. The rating of banks in Ukraine according to the highest and lowest indicator of regulatory capital adequacy is built. The results of the correlation between the capital of the banking system and the financial and economic indicators of development of a number of European and other highly developed countries are presented. The regularities and differences of the influence of banks' capital adequacy on the financial and economic development of countries using the method of correlation-regression analysis are characterized.Prospects for further research in this area are the improvement of existing or development of new economic and mathematical models to determine the forecast indicators of financial and economic development of the country when changing the supervisory requirements for capital adequacy of banks.

scholarly journals Pragmatics and problemmatics of the banking sector functioning in Ukraine

2018 ◽  
Vol 2 (1) ◽  
pp. 15-25
Author(s):  
Oksana Redkva
Keyword(s):  
Economic Development ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Economic Downturn ◽  
Bank Capital ◽  
Macroeconomic Factors ◽  
Banking Institutions

Introduction. The permanent occurrence of crisis phenomena in the Ukrainian economy requires the state authorities and the National Bank to search for effective and optimal ways to overcome the economic downturn. Among the important elements in building a system of measures to counteract the recession and stimulate stable economic growth is to ensure a high level of financial stability of the banking system of the country. The banking system has key functions in the mechanism of implementation of the state economic policy to counteract the emergence of negative trends in both the real and financial sectors of the economy. In connection with this, the urgency of the issue of ensuring the proper level of functioning of the banking system is violated. Aim and tasks. The purpose of the research is to deepen the theoretical positions regarding the problematic aspects of the activities of banking institutions and to develop practical recommendations for improving the efficiency of their functioning in Ukraine. Research results. The paper examines the current state of functioning of the banking sector. On the basis of the conducted research, the existence of direct and indirect influence on functioning of the banking system in Ukraine was noted. The existence of the relationship between the main macroeconomic factors and functioning of the banking sector has been proved. By means of mathematical tools, a direct correlation between the growth of gross domestic product and the growth of net bank assets was established. The positive foreign experience of countries with transition economies, which managed to ensure the efficient functioning of the banking system has been considered. The promising measures that will promote the improvement of the banking system and stimulate economic development have been outlined. Conclusions. The analysis of the status of banking institutions indicates the need for changes and effective reforms in the banking system. Realization of any type of reforms carries both potential advantages and the possibility of occurrence of certain risk situations. Therefore, it is expedient and consistently to outline a list of measures that will promote the improvement of the banking system and stimulate economic development, namely: a systematic approach to solving the problem of asset quality; increase of the savings base, which will allow to expand lending; strengthening of the requirements for disclosure of information about the financial status, ownership and management structure of banks; increasing financial literacy of the population; provision of corporate governance of banks on the basis of the best world standards; carrying out constant supervision of the degree of concentration of bank capital in terms of the country and its origin.

scholarly journals Current Issues of Stability of the State-Owned Banks Deposit Base

2020 ◽  
pp. 83-90
Author(s):  
Lidiia Tryshak ◽  
◽  
Oleksandra Romashko ◽  
Nataliia Krykhivska ◽  
◽  
...  
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
The State ◽  
Qualitative Assessment ◽  
Positive Trend ◽  
Resource Base ◽  
Savings Bank ◽  
Demand Deposits ◽  
Banking Institutions ◽  
The Stability

The effectiveness of the functioning of the banking system of any state is determined by the sufficiency of the resource base, mainly formed from deposit sources. The purpose of the article is to assess the state and development trends of the deposit base of state commercial banks of Ukraine, which are the four largest banking institutions in terms of assets and liabilities. The concept of a deposit was highlighted and three basic approaches to the interpretation of this definition were identified. The assessment of the deposit activities of state-owned banks in terms of volume and structure during 2017-2019 was carried out. The results of the analysis show a positive trend towards an increase in the value of deposit resources of all state-owned banks, except for JSC “Ukreximbank”. For the stability of the resource base of commercial banks, the dominance of the share of term deposit funds over demand deposits is necessary. During 2017-2019 such dominance took place in JSC “State Savings Bank of Ukraine” and JSC “Ukreximbank”. The problems of balancing the structure of deposit resources by the terms of attraction were found in JSC CB “Privatbank” and JSC “Ukrgasbank”. As is known a qualitative assessment of the stability of deposit operations is possible only when analyzing a set of relative analytical coefficients. So, the article presents the main indicators that can be used to analyze the effectiveness of the use of attracted resources by banking institutions. Based on the analysis of indicators for assessing term and current deposits, the features of the functioning of the market for deposits of state-owned banks during 2019 were characterized. It was determined that the positive dynamics in the organization of the deposit activities of Ukrainian state banks is the result of an effective deposit policy. Even with low deposit rates, the volume of the deposit portfolio has increased in recent years, which indicates a gradual restoration of the confidence of depositors in the domestic banking system.

scholarly journals THEORETICAL FOUNDATIONS OF THE CREDIT MECHANISM OF MEETING CONSUMER NEEDS OF THE POPULATION

2020 ◽  
Vol 1 (1) ◽  
pp. 66-76
Author(s):  
Violetta Kharabara ◽  
Roman Greshko
Keyword(s):  
Banking System ◽  
The State ◽  
Internal Factors ◽  
Credit Risks ◽  
Theoretical Approaches ◽  
Consumer Lending ◽  
State Economy ◽  
Credit Mechanism ◽  
Main Components

Purpose. A significant role in ensuring the socio-economic development of the state, increasing the economic activity and purchasing power of the population is played by the credit mechanism of meeting the consumer needs of the population. However, the effects of crisis phenomena in the state economy have created high credit risks, which negatively affected the dynamics of consumer lending in Ukraine. Method. Thus, the purpose of this article is to study the financing of the real sector of the economy and increase its capital due to the effective functioning of the credit mechanism of meeting the consumer needs of the population. Research results. The theoretical approaches of scientists to the essence, elements and components of the credit mechanism of meeting the consumer needs of the population, external and internal factors influencing its efficiency, such as the ability of the borrower to return the credit, availability of credit, interest rate, as well as maturity and repayment terms are investigated in the paper. Also, the study analyzed legislative and regulatory acts on the development of credit relations and the banking system in Ukraine. The problems of organization of credit activity of banks, formation of effective credit policy, choice of effective methods, types of lending are considered. Particular attention is paid to the most common type of crediting of consumer needs with credit cards in the modern way. Value/originality. As a result, the paper proposes to consider the essence of the credit mechanism of meeting the consumer needs of the population as a set of forms and tools for influencing the system of credit relations between the subjects of lending to the consumer needs in order to provide the necessary volumes of consumer credit. In turn, as a result of using the method of comparative analysis, the list of consumer lending facilities is systematized in the work, the classification of credits for consumer needs of the population is improved, and the author’s vision of the main components of the credit mechanism of meeting the consumer needs of the population is characterized.

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.

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