scholarly journals Financial dollarization in the economy of Ukraine

2020 ◽  
Vol 66 (5) ◽  
pp. 131-138
Author(s):  
O. Shchurevych ◽  
O. Kotsemira
Keyword(s):  
National Economy ◽  
Financial Services ◽  
Relative Stability ◽  
Foreign Currency ◽  
Banking System ◽  
Developed Countries ◽  
National Currency ◽  
Loan Portfolio ◽  
Financial Dollarization ◽  
Legal Entities

The essence of dollarization phenomenon is considered in this paper. It is noted that dollarization occurs when the national currency does not completely perform the functions of money. In this case, the national currency is replaced in some transactions by foreign ones. Basically, it is the currency of highly developed countries with sustainable economic development. The defined main causes of dollarization in Ukraine are as follows: depositors attempt to keep their savings from devaluation result in financial crises accompanied by significant devaluation and inflation; distrust in regulator and government actions. The disadvantages of dollarization phenomenon for the national economy development are systematized and the following key ones are identified: decrease in the efficiency of NBU monetary policy, decrease in confidence in the national currency and banking system, decrease in demand for the national currency, growth of shadow economy and as the result tax revenues reduction. It is emphasized that one of dollarization types is financial dollarization, for which level assessment a number of indicators are selected: dollarization of loan and deposit portfolios, dollarization of MQ monetary aggregate. The structure of the deposit portfolio of individuals and legal entities in terms of currencies is considered and it is found that in periods of intensification of the crisis the level of dollarization increased, and in periods of relative stability – decreased. It is generalized that about 40% of the deposit portfolio is denominated in foreign currency. It means that consumers of financial services trust and save more in foreign currency. The structure of the deposit portfolio of individuals and legal entities in terms of currencies is considered and it is found that during the periods of crisis phenomena intensification the dollarization level increases, and during the periods of relative stability – decreases. It is summarized that about 40% of the deposit portfolio is denominated in foreign currency, i.e. the consumers of financial services trust and save more in foreign currency. The structure of the loan portfolio is analyzed and it is determined that the level of dollarization of the loan portfolio of legal entities is more than 40%, and consumer loans in foreign currency are prohibited, so the dollarization of the loan portfolio of individuals decreases annually up to 18%. The ratio of foreign currency deposits to money supply (MQ) is calculated, which, like other calculated indicators, proves that Ukraine has high dollarization level. Based on the carried out analysis, the conclusions concerning the need to coordinate the efforts of the central bank, government, parliament in order to reduce the dollarization level up to the natural level for the elimination of threatening consequences for the national economy are substantiated.

Trends and problems of retail Bank lending in modern conditions on the example of «Sberbank of Russia»

2020 ◽  
pp. 156-165
Author(s):  
В.В. Мандрон ◽  
А.Ю. Ефименко ◽  
Д.Г. Свиридов
Keyword(s):  
National Economy ◽  
Positive Impact ◽  
Banking System ◽  
Bank Lending ◽  
Real Income ◽  
Real Estate Market ◽  
The State ◽  
Loan Portfolio ◽  
Effective Development

Эффективное развитие механизмов кредитования физических лиц оказывает положительное влияние не только на рынок недвижимости, автомобильную промышленность, потребительский рынок, но и на темпы развития банковской системы, что значительно влияет на рост национальной экономики и улучшает качество жизни населения РФ. Исследование посвящено ключевым тенденциям и проблемам функционирования рынка розничного кредитования в современных условиях. Определены главные проблемы, которые оказывают существенное влияние на организацию рынка розничного кредитования, его объемы и качество. Проведен анализ данных отражающих состояние рынка розничного кредитования на современном этапе. На состояние данного сегмента кредитного рынка оказывает влияние как общее экономическое состояние государства, курс денежно-кредитной политики Банка России, уровень реальных доходов населения, а также форс-мажорные ситуации. В статье дается оценка объема, состава и структуры кредитного портфеля одного из крупнейших финансово-кредитных институтов страны – ПАО «Сбербанк России». Особое внимание уделено кредитованию физических лиц в разрезе отдельных форм и видов кредитных инструментов, отражается связь состояния национальной экономики и качества кредитного портфеля банка. Effective development of mechanisms for lending to individuals has a positive impact not only on the real estate market, automotive industry, consumer market, but the pace of development of the banking system, which greatly affects the growth of the national economy and improves the quality of life of the Russian population. The research is devoted to the key trends and problems of functioning of the retail lending market in modern conditions. The main problems that have a significant impact on the organization of the retail lending market, its volume and quality are identified. The analysis of data reflecting the state of the retail lending market at the present stage is carried out. The state of this segment of the credit market is influenced by the General economic state of the state, the rate of monetary policy of the Bank of Russia, the level of real income of the population, as well as force majeure situations. The article provides an assessment of the volume, composition and structure of the loan portfolio of one of the largest financial and credit institutions in the country-PJSC Sberbank of Russia. Special attention is paid to lending to individuals in the context of individual forms and types of credit instruments, reflecting the relationship between the state of the national economy and the quality of the Bank's loan portfolio.

DOLARIZATION OF THE FINANCIAL MARKET OF UKRAINE: CAUSES, EVOLUTION, CONSEQUENCES

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 56-66
Author(s):  
Ihor Krupka
Keyword(s):  
Interest Rates ◽  
Financial Market ◽  
Foreign Currency ◽  
Banking System ◽  
Market Potential ◽  
National Currency ◽  
Foreign Banks ◽  
Stable Operation ◽  
Negative Consequences ◽  
International Financial Market

The purpose of the article is to assess the level of domestic financial market dollarization, find out the causes of this economic phenomenon, trace its evolution and identify current features, substantiate proposals to minimize the negative consequences for the financial market and the economy in general. The methods of theoretical analysis, synthesis and generalization, analysis of statistical data and its graphical interpretation are used in the research. The results of the research showed that the main reasons for dollarization in Ukraine were high inflation and sharp fluctuations in the exchange rate of the national currency. In general, the dollarization of national financial markets occurs through the following channels: 1) borrowing on the international financial market; 2) the entrance of foreign banks to a domestic market; 3) investing abroad, when a national financial market is not sufficiently developed to create high-quality and highly liquid assets, dollarization provides rapid access to foreign financial assets and optimization of the profitability and risk structure of an investment portfolio; 4) the difference (spread) between interest rates in national and foreign currency. Based on the study of the domestic financial market, the following conclusions are made: 1) the level of Ukraine`s financial market dollarization in the aggregate and in terms of its separate segments is high; 2) this level poses a threat to the stable operation of financial intermediaries and the banking system in case of the national currency devaluation; 3) currency imbalance of assets and liabilities in the banking system has strongly decreased since 2008, but is still significant; 4) foreign currency is widely used by economic agents in the shadow sector of the economy. We consider the current dollarization level dangerous for the development of the country's financial system, and its reduction to a scientifically sound natural level should become one of the main tasks of the National Bank of Ukraine. Achieving the natural dollarization level and effective use of the domestic financial market potential will allow to intensify Ukraine's national economy development and promote integration into the international financial market and the global financial space.

scholarly journals PRIORITY DIRECTIONS OF REALIZATION OF THE INSTRUMENTS FOR FINANCING SMALL AND MEDIUM ENTERPRISES IN MODERN CONDITIONS: REGIONAL COMPARISON

2017 ◽  
pp. 82-87
Author(s):  
I. P. Vishnyakov
Keyword(s):  
Financial Services ◽  
Small Businesses ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Special Kind ◽  
Developed Countries ◽  
State Regulation ◽  
Special Role ◽  
Medium Enterprises

The article considers the problem of supporting small and medium businesses in the southern Federal district and Rostov region. The topic is relevant, because on small and medium enterprises hold the economy of the developed countries. The development of the microcredit sector in Russia and market development of financial services requires the theoretical study and practical resolution of issues that are associated with the organization levers of the financial interaction between the public and private sectors of the economy, the development of the legal base and state regulation. Special attention is paid to the problem of microcrediting of small businesses, with a description of regional programs of support and analysis specific amounts of subsidies and microcredit, the conditions of issuance, etc.. The specifics of microfinance organizations and credit organizations of a special kind, their special role and positive impact on the economic processes in Russia, which is reflected in the demand for loans to enterprises medium and small businesses and strengthening the flow of capital through the provision of loans to enterprises of the real sector of the economy, and participation in the transformation of the banking system, to ensure the flexibility of the financial system and the functioning of the differentiated structure of the banking organizations in Russia.

scholarly journals Financial dollarization: Trojan horse for Ukraine?

Ekonomika ◽  
2015 ◽  
Vol 94 (3) ◽  
pp. 21-45
Author(s):  
Nataliia Versal ◽  
Andriy Stavytskyy
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Foreign Currency ◽  
Banking System ◽  
Inflation Expectations ◽  
Domestic Currency ◽  
Currency Exchange ◽  
Bank Deposits ◽  
The Exchange Rate ◽  
Financial Dollarization

The paper revisits the causes and consequences of financial dollarization in Ukraine during the past decade (monthly data). Dollarization in emerging markets plays a dual role: positive and negative. This study of financial dollarization is in the context of resident household holdings of foreign currency-denominated bank deposits and loans. If exchange rates are stable, deposit dollarization allows the withdrawal of money from the shadow economy, and loan dollarization allows the lending of long-term money, which is not possible with domestic currency due to inflation expectations. At the same time, the instability and lack of supply of foreign currencies in the market result in the collapse of household and bank finances, leading to currency risk, credit risk, and liquidity risk. Therefore, the study uses estimate indicators, the deposit dollarization index (DDI), household foreign currency deposits and loans, loan to deposit ratio (LTD), and inflation to find out the tendencies in the context of a changing domestic currency exchange rate. We present three models to reveal the influence of financial dollarization on banking stability. The first one explains the real value of domestic currency deposits through indicators such as M2 (positive), exchange rate (negative), domestic currency deposits (positive), and panic effects (negative). The second one describes the influence of the exchange rate (negative) and panic effects (negative) on foreign currency deposits. The third one explains the DDI through such the exchange rate, M2, and interest rates. The combined models provide an insight about the time necessary to stabilize the Ukrainian banking system.

scholarly journals FACTORS OF UKRAINIANS’ CONFIDENCE IN THE NATIONAL AND FOREIGN CURRENCIES: ASPECT OF BEHAVIOUR

2018 ◽  
pp. 51-61
Author(s):  
Viktoriya Dmytriyeva
Keyword(s):  
Financial Services ◽  
Foreign Currency ◽  
Low Cost ◽  
National Currency ◽  
Full Time ◽  
General Behaviour ◽  
Hidden Economy ◽  
Foreign Currencies ◽  
Full Time Employee ◽  
Bank System

Introduction. Customers of financial services react to economical conjuncture by behaviour, which can indicate the confidence both in own national currency and bank system in whole. The factor of hryvnia domination in national economy that is an official national currency remains relevant. On the one hand, when volume of the foreign currency rises sharply in the market or savings, then it means not only failure of trust to hryvnia but also the hidden economy dollarization. It causes the plunge of hryvnia value, inflation, and other crisis symptoms. On the other hand, behaviour of financial services customers can be not only the response but also the factor that effects the economic development. Purpose. The article aims to analyse factors that form Ukrainian household preferences in choosing type of currency for saving money on the bank accounts; to investigate factors that affect general behaviour of depositors during the period from January 2006 to November 2017. Method (methodology). Dynamic rows comparison in comparable currencies for the analysis of changes in gross domestic product per capita is used in the research. Such indicators as average salary per one full-time employee, foreign currency deposits, dollarization level, regression coefficients are analysed in compared rates of currencies to have relevant results about household behaviour. Graphical method is used to demonstrate the results of analysis. Results. The trend of declining of household deposits in all types of currencies since 2014 has been analysed. Low cost of hryvnia has pushed households to put money on deposits in stable foreign currencies. However, the recession tendencies have been observed even in the volumes of deposits in stable currencies. Changes in income level of the population have become the main course of deposits fluctuations.

Currency regulation in Russian banking system

2019 ◽  
pp. 91-102
Author(s):  
Anna Gubareva ◽  
Stanislav Stepkin
Keyword(s):  
Monetary Policy ◽  
Public Relations ◽  
Foreign Exchange ◽  
National Economy ◽  
Foreign Exchange Market ◽  
Foreign Currency ◽  
Banking System ◽  
Control Mechanisms ◽  
Constitutional Principle ◽  
Legal Security

The liberalization of currency regulation in the 1990–2000s was «partial». To date, significant restrictions remain regarding the requirements of the law on the procedure for performing currency operations and the prohibitive nature of the activities of Russian business. Control mechanisms do not allow to achieve macroeconomic targets for the stability of the ruble. The authors state that there is a need for reform in this area. The monetary policy plays an important role in regulating the market economy. It is a set of measures implemented in the sphere of international monetary and economic relations in accordance with the current and strategic plans of the country. The monetary policy of Russia is aimed at ensuring stability of its currency and domestic foreign exchange market as factors of development of the national economy and international economic cooperation. This policy is implemented by including foreign currency denominated obligations in currency regulation. One of the means of implementing foreign exchange policy is currency regulation, which is understood as «a set of purposeful actions of the state to form or change existing public relations on currency values through the application of legal and economic measures of influence». The principle of state responsibility for national security and development of the national economy is a unique principle for the Russian legal system. This should be a constitutional principle common to all branches of the Russian law. The article analyzes to what extent the principles of legal security may influence the legal regime of currency control in the Russian banking system.

The Correlation of Non-Performing Loans Between the Four Greek Systemic Banks Before and During the Recent Crisis Based on Accounting Information

2017 ◽  
Vol 4 (2) ◽  
pp. 23-40
Author(s):  
Kanellos Stylianou Toudas ◽  
Apostolos Christopoulos ◽  
Petros Kalantonis ◽  
Stylianos Kravaritis
Keyword(s):  
Accounting Information ◽  
Banking System ◽  
Developed Countries ◽  
Real Economy ◽  
Negative Effects ◽  
Loan Portfolio ◽  
Ongoing Debate ◽  
Global Banking ◽  
Recent Financial Crisis ◽  
Positive Shock

In the last years, and especially during the recent financial crisis there is an ongoing debate about non-perorming loans (NPLs) as they have increased enormously, even in developed countries. This phenomenon has deteriorated the overall status of banks, especially in countries that affected more by the crisis, as the loan portfolio constitutes a very important part of banks' total assets. This situation has increased uncertainty towards the global banking system resulting to run on banks with negative effects on the liquidation of the financial system and therefore to the finaning of the real economy. The aim of this article is to examine the level of correlation of NPLs among the four systemic banks in Greece. The empirical results show that the level of NPLs of the examined banks is affected by the performance of the bank itself in previous periods, as well as the performance of the other three banks for the same periods. Furthermore, the impulse response of a positive shock on the level of NPLs of each bank proves the existance of correlation between the four banks.

Stress-testing Russian Banking System: Will Banks Need Government Assistance Again?

2010 ◽  
pp. 61-81 ◽  
Author(s):  
O. Solntsev ◽  
A. Pestova ◽  
M. Mamonov
Keyword(s):  
Stress Testing ◽  
Banking Sector ◽  
Stress Test ◽  
Banking System ◽  
Government Assistance ◽  
Methodological Issues ◽  
Loan Portfolio ◽  
Macroeconomic Indicators ◽  
Remote Stress ◽  
Capital Injections

The article analyzes factors that affect growth of the share of non-performing loans in the loan portfolio of Russian banks and proposes approaches for this share forecasting on the basis of dynamics of macroeconomic indicators. It also deals with methodological issues of remote stress-test of lending agencies. Using the results of conducted stress-test of Russian banks the authors assess their perspective capital needs in 2010 and estimate the share of government assistance in capital injections. Furthermore, the authors define the scale of vulnerable banks groups in the Russian banking sector.

2008 Economy Results: The End of the "Fat" Years

2009 ◽  
pp. 4-25 ◽  
Author(s):  
B. Zamaraev ◽  
A. Kiyutsevskaya ◽  
A. Nazarova ◽  
E. Sukhanov
Keyword(s):  
Economic Crisis ◽  
National Economy ◽  
Banking System ◽  
Housing Markets ◽  
Transmission Mechanism ◽  
Economic Conditions ◽  
Basic Change ◽  
Russian Economy ◽  
The World

The article analyzes the current economic conditions in Russia. Succession, distribution and the transmission mechanism of the world financial and economic crisis to the Russian economy are considered in this article as well as the changes in the banking system, share and housing markets. Production, consumption and investment on the boundary of 2008-2009 are described. The conclusion about the basic change of conditions of national economy development is presented.

Role of The Halal Industry in Recovering the National Economy in Covid-19 Pandemic

2020 ◽  
Vol 8 (2) ◽  
pp. 202-214
Author(s):  
Cucu Susilawati
Keyword(s):  
National Economy ◽  
Banking Sector ◽  
Developed Countries ◽  
Online News ◽  
Financial Industry ◽  
National Economic ◽  
Halal Food ◽  
Vigorous Growth ◽  
Business Sectors

The outbreak of the Covid-19 pandemic in Indonesia is attacking not only public health but also the economy. The presence of Covid-19 has many important impacts on developed countries. There are at least four industries most impacted by this pandemic, including households, MSMEs, companies and the financial industry. However, the halal industry is believed to be more resilient to the Covid-19 pandemic. This durability is because of the principles attributed to the halal sector, namely the importance of fairness, balance and openness. The author’s goal is therefore to carry out more in-depth research on the role of the halal industry in supporting the national economy, which is under pressure because of the COVID-19 pandemic. This type of study is a literature review with a material analysis approach that explores the conditions of the halal industry in Indonesia in depth. The material received is as books, published information, and online news. The findings of this study reveal that there are three halal business sectors that are believed to be more vulnerable to the Covid-19 pandemic in order to facilitate national economic recovery. Halal finance, halal food and halal fashion industries are among them. Halal finance from both the banking sector and the Islamic stock market has proved to be more robust than the mainstream financial sector. Besides guaranteed halal food, its wellbeing is also guaranteed, and halal fashion is now on the rise as Muslim fashion is increasingly innovative and global. We believe the three of them to have experienced vigorous growth, and also to continue to draw customers. And also after the Covid-19 pandemic, these three sectors could survive. Thus the halal industry also contributes to Indonesian economy.

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