scholarly journals THE RISKS OF OPERATING A CRYPTOCURRENCY BUSINESS

2021 ◽  
pp. 81-86
Author(s):  
Honak I.
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Legal Regulation ◽  
Practical Training ◽  
Economic Activities ◽  
Economic Entity ◽  
Card Number ◽  
Bank Card ◽  
The Individual ◽  
Monetary Circulation

The article is devoted to the study of theoretical and practical aspects of the risks that accompany the activities of economic actors in the cryptocurrency market (both mining and trading) at the micro­ and macro­economic level at the beginning of the third decade of the XXI century. The risks associated with the functioning of economic entities in the market of cryptocurrency coins and such risks are the following: lack of legal regulation on the cryptocurrency market and insurance of owners of assets stored on crypto wallets; use of malware in order to access assets rotating on the cryptocurrency market; hacking attacks on cryptocurrency wallets and exchanges in order to steal cryptoassets; loss of assets deposited into accounts of cryptocurrency exchanges in case of bank-ruptcy or closure of these exchanges; loss of the password used to access the crypto wallet; loss of a secret personal PIN code, which is the key to access funds deposited into the crypto wallet at the exchange and used to transfer assets (cryptocurrencies or fiat currencies) to other crypto wallets or a bank card; erroneous transaction due to one number or letter mistake when transferring from one crypto wallet to another or error (when entering bank card number), when transferring funds from crypto wallet to bank card, a mistake of one or more numbers is possible and funds will be transferred to the wrong addressee, in both cases it is impos-sible to cancel the transaction and funds are lost irrevocably; significant volatility in the value of cryptocurrencies, because of which an investor can go bankrupt. It was revealed that the functioning of the cryptocurrency market is also associated with risks to the national economy and security: monetary policy (reduction of control over monetary circulation due to the replacement of national fiat currency with cryptocurrency coins and the loss of the central bank monopoly on the emission of money and reducing the country's income from seigniorage due to mining cryptocurrencies), financial stability (because of the threat of the outflow of deposits from the banking system and replacing them with investments in cryptocurrencies, the possibility of replacing traditional banking, as well as the possibility of avoiding taxation and shadowing the economy) and national security. It has been proven that the intensive activity of an economic entity associated with mining, trading, investing or other economic activities in the cryptocurrency market requires significant theoretical and practical training of the individual and patience and faith in the future of cryptocurrency market activity because of the probability of losing savings invested in cryptocurrencies or investments.Keywords: risk, cryptocurrency, cryptocurrency market, crypto coin, crypto wallet, Bitcoin, Ethereum, cyberattack. Статтю присвячено дослідженню ризиків, які супроводжують діяльність ринку криптовалют, як майнінгу, так і трейдингу. Охарактеризовано ризики, з якими пов’язане функціонування ринку криптовалют, і такими ризиками є: відсутність правового регулювання та страхування власників криптогаманців; використання шкідливих програм та здійснення хакерських атак на криптогаманці і біржі криптовалют; утрата активів, розміщених на рахунках криптовалютних бірж, у разі банкрутства чи закриття цих бірж; утрата паролю від криптогаманця чи втрата секретного персонального PIN­коду, що є ключем доступу до коштів, розміщених на криптогаманці на біржі; помилкова транзакція (через помилку на одну цифру чи букву) під час переказу з одного криптогаманця до іншого (також під час переказу грошових коштів із криптогаманця на банківську картку можлива помилка на одну чи кілька цифр, і кошти будуть переказані не тому адресанту, якому вони передбачалися); значна волатильність вартості криптовалют. Виявлено, що функціонування ринку криптовалют пов’язане з ризиками для національної економіки: монетарної політики, фі-нансової стабільності, інвестиційної та банківської діяльності. Доведено, що активна діяльність економічного суб’єкта, пов’язана з майнінгом, торгівлею, інвестуванням чи іншою економічною діяльністю на ринку криптовалют, вимагає значної теоретичної і практичної підготовки особи через імовірність утратити заощадження, вкладені у криптоферми чи інвестиції.Ключові слова: ризик, криптовалюта, крипторинок, криптомонета, криптогаманець, Bitcoin, Ethereum, хакерська атака.

LEGAL REGULATION OF CERTAIN ADMINISTRATIVE AND ECONOMIC SANCTIONS APPLICABLE BY CIVIL SERVICE OF UKRAINE FOR TRANSPORT SAFETY

2017 ◽  
Author(s):  
Maryna Kovtun ◽  
◽  
Bohdan Shymanskyi ◽  
Vladyslav Harkusha ◽  
◽  
...  
Keyword(s):  
Working Hours ◽  
Legal Regulation ◽  
The State ◽  
Legal Responsibility ◽  
Economic Activities ◽  
State Service ◽  
Commercial Code ◽  
Transport Safety ◽  
Business Entities ◽  
The Individual

The article is devoted to the study of the legal nature of administrative and economic sanction and administrative and economic penalty as its type and separately considered the legality of the application of this type of sanction in a separate case by the State Service of Ukraine for Transport. The scientific positions and approaches to which the type of responsibility should be studied should be studied. It has been established that the positions of scientists are mainly divergent in two directions - some attribute them to economic and legal responsibility, while others to the administrative. The practice of depositing the State Service of Ukraine for transport on the use of an administrative- economic fine to business entities carried out within the territory of Ukraine through the absence of documents containing data of the operation of the device for registration of the registration regime and recreation of drivers (tachographs). On the regulatory and legal basis for regulating the provinces of Ukraine, and the individual provisions of the Commercial Code of Ukraine, the Law of Ukraine "On Automobile Transport", the provisions on working hours and time of rest of drivers of wheeled vehicles, approved by the order of the Ministry of Transport and Communications of Ukraine No340. From the norms of these legislation acts, it becomes clear that the audits on the availability of established tachographs and respectively documents containing data on their work on vehicles carried out internal transportation are not covered by a circle of powers of the State Service for Transport Security. It also notes that administrative courts when considering the appeal of the above-mentioned decisions took the position of the state body and misinterpret the norms of legislation, which in turn leads to the case of unfair decisions that are contrary to the requirements of legislation. It is emphasized on the need to change this false trend in order to avoid illegal interference of state authorities into economic activities of business entities.

scholarly journals Modeling of credit portfolio management efficiency

2021 ◽  
Vol 70 (3) ◽  
pp. 89-101
Author(s):  
N. Ostrovska
Keyword(s):  
Portfolio Management ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Estimation Methods ◽  
Loan Portfolio ◽  
Credit Risks ◽  
Economic Entity ◽  
The World ◽  
The Relationship

Credit operations, among the great variety of services provided by the bank, are one of the most important activities. In the assets of commercial banks, loans occupy a strong position of the most extensional and profitable items. The reliability and financial stability of commercial banks depends on the composition and structure of the bank's loan portfolio and the process of its management. Under current conditions, the development and improvement of the bank's loan portfolio management system intended to minimize the credit risks and ensure the sustainable operation of commercial banks have become particularly important. Crisis phenomena in economy have proved that the activities of any economic entity is associated with uncertainty in market development. Adverse developments in the world markets directly affected the solvency of borrowers of many banks. The increase in defaults of most borrowers resulted in the increase in defaults on loans, causing the increase in overdue debt, lower profitability and liquidity problems in banks. Thus, the recent crisis in the world economy, including Ukrainian economy, has demonstrated the failure of the methods used to assess and manage credit risk in banking, as well as the imperfection of the methods used to manage the loan portfolios of commercial banks. The results of the previous carried out investigation indicate that in order to form the correct management decisions and take practical actions concerning the formation of loan portfolio for commercial bank, it is necessary to assess its status. In this regard, the method of econometric modeling (determination of the relationship between gross domestic product and overdue debt of the banking system in Ukraine, the relationship between the volume of loans issued by banks and the discount rate; the relationship between the volume of loans issued to individuals and the volume of the loan portfolio in general) is differentiated in this paper from other estimation methods. This method made it possible to determine the effectiveness of loan portfolio management of commercial banks. The results of the calculations provide reasons to confirm that there is insignificant relationship between the level of loans to individuals and the loan portfolio.

scholarly journals Theoretical principles of enterprise capital management

2020 ◽  
pp. 19-22
Author(s):  
Viktoriia KREMEN ◽  
Olha KREMEN ◽  
Alina KRAVCHENKO
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Legal Regulation ◽  
External Support ◽  
Capital Management ◽  
Economic Activities ◽  
Financial Activity ◽  
Financial Autonomy ◽  
Effective Use ◽  
Theoretical Foundations

The enterprise's capital is the basis of its activities, the basis for the formation of proper financial and property support of economic activity and the bedrock of financial autonomy, solvency, and stability. An important area of financial management in the enterprise is capital management, which includes essential areas such as selecting and prioritizing capital sources, ensuring consistency of capital cost with profitability, structuring and optimizing the composition and volume of capital. The paper is devoted to studying enterprise capital's economic essence and its management's theoretical foundations as a sufficient component of financial management and financial work in the enterprise. The paper presents the analysis of scientific and methodological approaches to interpreting the essence of the concept of «capital» and «enterprise capital». The paper substantiates that the enterprise's capital is a set of monetary, tangible and intangible assets, mobilized from various sources and involved in operational and investment processes to generate income and maximize the market value. The enterprise's capital as the main source of maximum profit, profitability, and financial stability requires effective management through the application of a system of principles and methods of development and implementation of management decisions related to its optimal formation and ensuring its effective use in various economic activities. The enterprise's capital management mechanism includes a system of regulation of financial activity of the enterprise, a system of external support of financial activity of the enterprise, a system of financial levers, a system of financial methods, and a system of financial instruments. The system of regulation of the enterprise's financial activity, in turn, includes the state regulatory legal regulation, market and internal mechanisms of regulation of financial activity of the enterprise in the part of capital management.

Legal Regulatory Gaps in Russian Internal Audit: Institutional Aspect

Auditor ◽  
2019 ◽  
Vol 5 (11) ◽  
pp. 19-22
Author(s):  
О. Карпова ◽  
O. Karpova ◽  
Я. Формулевич ◽  
Ya. Formulevich
Keyword(s):  
Internal Audit ◽  
Legal Regulation ◽  
Internal Auditing ◽  
Economic Activities ◽  
Independent Control ◽  
Economic Entity ◽  
Institutional Aspect ◽  
Formal Rules

The article defines the role of internal audit in the financial and economic activities of economic entity. The advantages of internal auditing are analyzed. The authors also described the interaction between internal audit and external independent control. Special attention is paid to the problems of the Russian internal audit, namely the formal rules (norms). As a result, the authors propose the ways to eliminate gaps in the legal regulation of the Russian internal audit.

scholarly journals Individualistic Vikings: Culture, Economics and Iceland

2015 ◽  
Vol 11 (2) ◽  
pp. 355 ◽  
Author(s):  
Már Wolfgang Mixa ◽  
Vlad Vaiman
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Explanatory Power ◽  
Banking System ◽  
Economic Behavior ◽  
Point Of View ◽  
Cultural Dimension ◽  
The 2008 Financial Crisis ◽  
The Individual ◽  
High Level

Icelandic culture has generally been considered to share many similarities to the Nordic cultures. However, the financial crisis in 2008 painted a completely different picture, with the Nordic nations faring much less worse than Iceland, which saw its banking system becoming almost entirely worthless. Looking at traditional cultural yardsticks in the vein of the most commonly used research in the field of business and organizational management, generally linked to Hofstede´s dimensional studies, one would at first glance conclude that Icelanders would have behaved in a similar manner as people in the Nordic nations. By focusing on savings ratio, it is shown that Icelanders were much more risk-seeking during the prelude of the crisis. Many nations badly hit during the 2008 financial crisis have a high level of individualism inherent in their culture. Iceland fits this scenario. Thus while general cultural characteristics may lack explanatory power regarding economic behavior of people between cultures, the individual/collective cultural dimension may provide clues of what dangers (and possible strengths) lurk within societies from a financial point of view. Such developments may affect the financial stability of nations, especially those with a high level of individualism where financial liberalization with possible abuses is occurring.

STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

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.

THE SIGNIFICANCE OF THE NATIONAL ARCHIVE FUND FOR CULTURAL AND HISTORICAL HERITAGE

2018 ◽  
Vol 28 (7) ◽  
pp. 2417-2425
Author(s):  
Peter Peikov ◽  
Borana Hadjieva
Keyword(s):  
Financial Stability ◽  
National Archive ◽  
The State ◽  
Cultural Significance ◽  
Political Climate ◽  
Leading Role ◽  
Non Governmental Organizations ◽  
Role Of The State ◽  
Historical Heritage ◽  
The Individual

The present paper reveals the significance of the National Archival Fund for preservation of the historical and cultural memory of the Bulgarian nation and the formation of historical consciousness. The National Archives Fund is defined as the largest collection of documents with historical, scientific, social, economic, cultural significance as an essential part of the cultural and historical heritage of Bulgaria.It treasures documents about the history of thousands of institutions and prominent figures of the state, economy, culture and art, of ordinary citizens whose activity is historically important in one respect or another.The emphasis of the study is on the main factors determining the daily enrichment of the National Archival Fund with new documents. Among these key factors are development of documentaristics and archivistics, trends in social development, ideological and political climate, financial stability and attitude of the society as a whole, of the istitutional leaders and administrative heads, creating documents, in particular, of the non-governmental organizations and even of the individual citizen to the problems in the field of archivistics.In the focus of the paper as well is the leading role of the state archives for the formation of the National Archival Fund of Bulgaria and the opportunities for cooperation with museums, libraries, community centers and other institutions of memory working with the same purpose and vision.

Actual issues of valuation of businesses of the economic entity

2017 ◽  
Vol 31 (2) ◽  
pp. 156-162 ◽  
Author(s):  
O. V. Schneider
Keyword(s):  
Discount Rate ◽  
Accurate Prediction ◽  
Economic Activities ◽  
Business Valuation ◽  
Economic Entity ◽  
The World ◽  
Definition Of

The article summarizes the main approaches in the definition of business valuation the economic entity. In the process of business valuation, taking into account the risks of financial and economic activities necessary to obtain information on what stage the owner implements the business will receive income. The most difficult task is the impossibility of accurate prediction in determining the level of income and the determination of a discount rate capitalization of future incomes due to the instability of the economy, both in the country and around the world.

scholarly journals Financial stability and local economic development: the experience of Italian labour market areas

2021 ◽  
Author(s):  
Cristian Barra ◽  
Roberto Zotti
Keyword(s):  
Economic Development ◽  
Labour Market ◽  
Financial Distress ◽  
Financial Stability ◽  
Local Economic Development ◽  
Banking System ◽  
Spatial Effects ◽  
Financial Conditions ◽  
Market Areas ◽  
The Relationship

AbstractRegulators should ensure the smooth functioning of the system and promote regional development. Making the health of financial institutions is therefore a prerequisite for a sustainable economic development. This paper contributes to the literature on the relationship between the financial stability and growth within the area of one country. This implies that institutional, legal, and cultural factors are more adequately controlled for and financial markets are more accurately bounded. Using a rich sample of Italian banks over the 2001–2012 period, this paper addresses whether different measures of financial distress affect economic development of labour market areas in Italy. Results show that the financial stability has a positive effect on local economic development, robust to alternative variables capturing financial vulnerability. The presence of spatial effects is tested showing that better financial conditions of the banking system in neighbouring areas have a detrimental effect on an area’s growth.

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