scholarly journals ASSESSMENT OF FINANCIAL SECURITY OF THE BANKING SYSTEM OF UKRAINE

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

scholarly journals Methodological Aspects of the Financial Stability of Iraq’s Banking System

2020 ◽  
pp. 208-218
Author(s):  
Haider H. Dipheal Shubbar ◽  
Keyword(s):  
Central Bank ◽  
Financial Distress ◽  
Financial Stability ◽  
Banking Sector ◽  
System Development ◽  
Banking System ◽  
Capital Adequacy ◽  
Financial Monitoring ◽  
High Level ◽  
Methodological Aspects

This article discusses the methodology the Central Bank of Iraq developed to assess the financial stability of commercial banks. This topic is relevant because, in modern economic conditions, the Central Bank of Iraq is forced to tighten requirements to credit institutions. Banks use not only their own funds, but also the funds of the population, legal entities, so they must be reliable and stable. Financial stability directly characterises the reliability of banks, so it must be strictly controlled. The Central Bank of Iraq has created its own methodology for assessing the financial stability of the banking sector. Its use should improve the quality of the created banking system development strategies and the financial monitoring of these strategies’ implementation. The Iraqi banking sector has a high level of capital adequacy, which helps to reduce the likelihood of financial distress in it.

scholarly journals Assessment of the Relationship between the Banking System on the Financial Security of the State

2021 ◽  
Vol 26 (1) ◽  
pp. 55-63
Author(s):  
Tetiana Kubakh ◽  
◽  
Yevhen Rudenko ◽  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Public Confidence ◽  
Internal Source ◽  
Financial Security ◽  
External Threats ◽  
The Impact ◽  
The Relationship

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

scholarly journals Management of Liquidity Risk and the Banking Activity

2019 ◽  
Vol 8 (2) ◽  
pp. 01-08
Author(s):  
Leonora Haliti Rudhani ◽  
Driton Balaj
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Liquidity Risk ◽  
Risk Indicators ◽  
Liquidity Management ◽  
Banking Activity ◽  
The Stability ◽  
High Level

The banking sector in Kosovo continues to have a high level of sustainability and financial stability. Two substantial components for the stability of the banking system appear to be liquidity and liquidity risk. The purpose of this paper is to analyze liquidity management in Kosovo's commercial banks through liquidity risk indicators from 2008 to 2017. By comparing the methodology of the data presented, the study will assess the state of management of the liquidity risk of commercial banks. From 2008 until now, commercial banks in Kosovo have had liquidity reserves at a level higher than the level required by CBK, which means that exposure to liquidity risk was minimal.

scholarly journals АNALYTICAL EVALUATION OF INDICATORS OF BANKING SYSTEM CAPITALIZATION AND MACROECONOMIC STABILITY IN UKRAINE

2021 ◽  
Vol 2021 (2) ◽  
Author(s):  
І. Didenko ◽  
A. Yefimenko
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Additive Model ◽  
Banking System ◽  
Exponential Smoothing ◽  
The State ◽  
Bank Capital ◽  
Analytical Review ◽  
High Level ◽  
Macroeconomic Stability

Current trends in economic development of both the state as a whole and its individual sectors lead to a more detailed assessment of indicators of banking sector capitalization as indicators of system financial stability. Also, socio-economic fluctuations at the international level instigate a revision of macroeconomic stability indicators, which will allow analyzing the possibility of further development of Ukraine. It is important to note that a sufficient level of banking system capitalization is the basis for covering potential risks. With a high level of capitalization, the risk of bank default decreases, which has a positive effect on macroeconomic stability. The purpose of the study is to conduct an analytical assessment of capitalization and macroeconomic stability, to determine the forecast values of bank capital and GDP of Ukraine for 2021-2022 and to develop practical recommendations for improving the level of these indicators. The main tools used during the study are: methods of grouping, comparison and generalization, the method of exponential smoothing of time series, construction of an additive model, graphical method. STATISTICA was used for forecasting. The article provides an analytical review of the main indicators of banking system capitalization of Ukraine. Indicators of macroeconomic stability are studied. It is determined that the main indicators of capitalization in Ukraine are: H1 and H2 standards, the amount of balance capital of banks. The forecast of the volume of capital of banks of Ukraine and GDP for 2021-2022 by the method of exponential smoothing is carried out. Forecasting is performed with and without taking into account the seasonal component. The constructed models are adequate, so the results can be used in practice. Having forecast values of capital, banks will be able to adjust their resource policy and determine the deficit or surplus of this indicator. The projected values of GDP will help to adjust the state policy in terms of the formation of the indicator and to develop appropriate measures to further improve its level. Thus, the analytical review should be conducted on an ongoing basis, taking into account changes in the socio-economic policy of the state, fluctuations in the banking sector and changes in the world economy.

scholarly journals PROBLEMS OF ENSURING THE FINANCIAL SUSTAINABILITY OF THE BANKING SYSTEM

2021 ◽  
Author(s):  
Olena Tarasova
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
Financial Sustainability ◽  
Loan Portfolio ◽  
Bank Deposits ◽  
High Inflation ◽  
The Stability ◽  
Banking Institution

The article explores the problems of ensuring the financial sustainability of the banking sector, which plays a very important role in the functioning of the financial system of the state. The role of the stability of the banking system in ensuring conditions of economic growth is justified. It is noted that it is the financial stability of each banking institution that is a prerequisite for the stable functioning of the entire banking system. It is emphasized that since the financial stability of the banking system is influenced by a large number of internal and external factors, for the effective functioning of the banking system of the country must be ready for any challenges to the macro and microenvironment. The main problems of the banking system in modern conditions should be considered the reduction of deposits of the population, deterioration of the quality of the loan portfolio, significant devaluation of the hryvnia, high inflation rates, loss-making of a significant number of banking institutions. It was concluded that the banking system of Ukraine feels a significant dependence on the funds of depositors - individuals, and therefore on factors that affect their behavior in the financial market. Trends of formation of deposit base of commercial banks of Ukraine and imbalances in the sphere of attraction of banking resources were analyzed. The growth of bank deposits of the population is slow, negative changes in their structure are observed. The share of deposits of individuals after the 2014 crisis has become significantly more volatile and risky in terms of financial stability. The increase in lending is complicated by the presence of large portfolios of problem loans, as a result of which there are a number of tasks to increase the efficiency of the loan portfolio, which should ensure a compromise of profitability, liquidity and credit risk acceptable to the bank. The priorities of monetary policy and the main tasks are formulated, the solution of which will allow to intensify lending to the real sector of the economy. Theoretical and practical recommendations have been developed to improve bank lending, increase the profitability of the banking system and capitalize Ukrainian banks.

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

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.

Assessing the Inter Bank Disparity in Non-Performing Assets (NPAs) Management in Indian Public Sector Banks

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 49-59
Author(s):  
Dhananjaya K. ◽  
Krishna Raj
Keyword(s):  
Public Sector ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Public Sector Banks ◽  
Recovery Mechanisms ◽  
The Stability ◽  
The Global Financial Crisis

In a bank-dominated financial system like India, the strength of the overall financial system or financial stability highly depends on the soundness of banks. Indian Banking system proved to be strong and resilient during the global financial crisis of 2008. But of late, there has been increased concerns about the continued deterioration in the stability of the banking sector. Financial stability report of RBI confesses to the fact that the risks to Indian banking sector have been increasing in the post-recession period particularly the risk of accumulating NPAs. This study attempts to analyse the trend in profitability, NPAs, and the effectiveness of recovery mechanisms and interbank disparity in NPA management with respect to public sector banks. We found that the profitability of public sector banks is declining in the post-crisis period and the amount of NPA has been on the rise. Further, the recovery mechanisms have proved to be ineffective in containing the problem of bad debts.

scholarly journals DEVELOPMENT OF A MECHANISM FOR MANAGING THE INCOME OF FINANCIAL AND CREDIT INSTITUTIONS IN THE CONTEXT OF ECONOMIC MODERNIZATION

2021 ◽  
Vol 80 (1) ◽  
pp. 53-58
Author(s):  
G. P. Koptayeva ◽  
◽  
M. Kanabekova ◽  
Ye. Zh. Yertayev ◽  
A. B. Orazbayeva ◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Banking Sector ◽  
High Efficiency ◽  
Banking System ◽  
Economic Security ◽  
Practical Implementation ◽  
The Stability ◽  
Definition Of ◽  
Credit Institutions

The research is caused, firstly, by the need to specify the definition of financial and credit institutions as subjects of the banking sector of Kazakhstan, analyze and evaluate existing approaches to managing their stability in the strategic aspect and identify factors (possible threats and dangers) that lead to loss of financial stability, and, secondly, by the need to develop a mechanism for managing the financial profitability of financial and credit institutions, ensuring their stable position both in the short and long term. To improve the quality of financial management and ensure the profitability of financial and credit institutions, it is necessary to justify and develop a strategy for managing their financial stability. At the same time, it should be borne in mind that even with high efficiency and profitability, insufficient attention to the issues of ensuring the stability and economic security of financial and credit institutions can lead to financial difficulties for them. Taking into account the problems discussed above, the relevance of issues related to improving the stability mechanism of financial and credit institutions has significantly increased, as has the need to find a new methodological apparatus aimed at adapting and studying foreign experience and its practical implementation in the domestic banking system.

scholarly journals IMPACT OF THE SUBJECTIVE FACTOR ON THE STABILITY OF UKRAINIAN BANKING SYSTEM

2018 ◽  
pp. 178-195
Author(s):  
Nataliia Pogorelenko
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Qualitative Evaluation ◽  
Complex Nature ◽  
Net Profit ◽  
Subjective Factor ◽  
The Stability ◽  
Multifactor Regression ◽  
Financial Result

Introduction. Proceeding from the axiomatic nature of the assertion that the system is stable only if both central bank and second-level banks are stable, the article focuses on the nature and connection between the general financial stability indicator (financial result) and particular banking groups: systemic (at the moment consists only of the state banks), banks with foreign capital and other banks. This choice has an objective precondition, taking into consideration the difficulty in implementation of the author's approach because of the need to use a correct sample for calculations on one hand, and frequent methodological changes in statistical sources, on the other hand. The obvious fact is that each of these banking groups has not only certain features of its own activities in the banking services market but also indirectly or even directly influences the functioning of the entire banking sector in Ukraine. Purpose. The article aims to assess the qualitative impact of individual quantitative factors on the key indicator of the efficiency of banking institutions which is net profit (or loss), at the level of individual groups, as well as on the system as a whole. Method (methodology). We build multifactor regression models to determine the dependency between net profit (loss) and various quantitative parameters that describe a particular banking group as well as banking system as a whole. Results. The results of the research have clearly shown which of the factors can influence the financial outcome for outlined banking groups. We have also discovered additional quantitative factors of influence on the banking sector profit. These factors were not included into any of the models on the group level. This result vividly confirms the initial thesis about the complex nature of connection between quantitative factors of distinct banking groups and endpoint financial result of the banking system. It demands a deeper qualitative evaluation of efficiency of its functioning both on micro- and macroeconomic level.

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