scholarly journals Household bank deposit market in Ukraine: structural and regional peculiarities

2020 ◽  
Vol 2020 (8) ◽  
pp. 26-41
Author(s):  
Marianna KICHURCHAK ◽  
Keyword(s):  
Interest Rates ◽  
Structural Changes ◽  
Methodological Approach ◽  
Banking System ◽  
Regional Level ◽  
System Integrity ◽  
Structural Peculiarities ◽  
Analysis And Synthesis ◽  
Favourable Environment ◽  
The Impact

The household bank deposit market belongs to one of the important components of the financial system of each country, leading to the need to clarify the dynamics of its development in the national economy and its regions. The purpose of the article is to determine the main regularities of functioning the household bank deposit market in terms of regions and the nature of structural changes in it, to develop recommendations for improving its environment and working conditions in the economy of Ukraine. Scientific methods of deduction and induction, analysis and synthesis, comparison and econometric modelling have been used. Structural peculiarities of the evolution of this market in 2009-20118 are evaluated at the regional level and its development is compared with similar markets in Belarus and Poland. The author has established this market had a tendency towards gradual decrease based on the reaction of households due to changes in social and economic and political conditions and violation of the banking system integrity in the years after 2014. It is determined that there was a gradual increase of regional concentration indices caused by raising differences of regional social and economic characteristics and household expectations. The following scientific and methodological approach to determining the nature of the development of the household bank deposit market by regions of Ukraine is worked out: specification of the main factors, their subsequent concretization by finding chief parameters of econometric models and clarifying the impact of identified factors on the regional structure of this market. It is found out that the improvements of social and economic conditions and activation of the labour market at the regional level, prudent policy of commercial banks concerning interest rates on deposits will create a favourable environment for the development of this market by region and achievement of positive structural transformations.

scholarly journals Research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine

2018 ◽  
pp. 46-59
Author(s):  
Nataliia Tkachenko ◽  
Oleksandr Momot
Keyword(s):  
Principal Components Analysis ◽  
Principal Components ◽  
Structural Changes ◽  
Methodological Approach ◽  
Banking System ◽  
Financial Economic ◽  
Aggregate Index ◽  
Components Analysis ◽  
The Impact ◽  
Legal Entities

The article examines the impact of banks performing operations involving transnational banking capital on the banking system of Ukraine through the use of the principal components analysis. This approach is related to the method of multidimensional statistical analysis and is widely used to reduce the dimension of an analyzed set of attributes, and to select the most informative indicators and classification features. From the research, it is found that the principal components analysis is based on the idea according to which structural properties of relations between variables can be determined by their dependence on fewer non-measureable (concealed, latent, hypothetical) general factors. The direct estimation of the impact of banks performing operations involving transnational capital on the banking system of Ukraine is carried out by means of the application package named Statistica. For this analysis, the following relative indicators showing how Ukraine’s banks perform operations involving transnational capital are used: 1) percentage of funds raised from legal entities; 2) percentage of funds raised from individuals; 3) percentage of owned capital; 4) percentage of profit / loss after tax; 5) percentage of assets; 6) percentage of loans and debts of legal entities; 7) percentage of loans and debts of individuals. Based on the research findings, it is shown that there are three principal components which take into account more than 5% of total variance. However, there is only one component among them the value of which exceeds 1. The second component equals 0.954179, meaning that it approaches 1. The scree plot shows that the breaking point can be viewed as the eigen-value of correlation matrix which equals 23.85%. Consequently, the two principal factors have an essential impact on the processes of foreign capital penetration into Ukraine. It is claimed that the expansion of transnational banking capital into the banking system of Ukraine is controversial. On the one hand, these trends are quite obvious. On the other hand, financial, economic, military, and political instability hampers such processes. In conclusion, it should be stressed that unlike other approaches, the research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine, is based on the principal components analysis. This makes it possible to develop an aggregate index which characterizes the impact of banks performing operations involving transnational capital on the banking system of Ukraine, and to use it for monitoring of structural changes in the banking system.

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.

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 MAIN DIRECTIONS OF CRYPTOCURRENCY INFLUENCE ON THE MONETARY POLICY AND FINANCIAL SAFETY OF BANKING SYSTEMS

2017 ◽  
pp. 152-160
Author(s):  
Oleksandra Vasylchyshyn
Keyword(s):  
Monetary Policy ◽  
Banking System ◽  
Central Banks ◽  
Negative Influence ◽  
Financial Security ◽  
Banking Systems ◽  
Fiat Money ◽  
Analysis And Synthesis ◽  
The Creation ◽  
The Impact

Introduction. The article deals with the peculiarities of the development of the market of cryptocurrency. The main directions of the negative influence of the growth of the capitalization of cryptocurrency market on the monetary policy of the central banks and the financial security of the banking systems are outlined. Possible variants of creation of national cryptocurrencies are investigated. The necessity of introduction of the blockchain system into the practice of organizing of currency turnover and functioning of banking systems is substantiated. Purpose. The article aims to study the impact of the expansion of cryptocurrency on the monetary policy of central banks and the financial security of banking systems. It also aims to work out the recommendations for the implementation of perspective, in our opinion, cryptocurrencies into the national banking system. Methods. In this research we have used the general scientific methods of analysis and synthesis (to understand the functional purpose of cryptocurrencies and to determine the directions of their influence on the monetary policy of central banks and financial security of banking systems); economic and statistical methods (to analyse the dynamics of capitalization of cryptocurrencies, to compare the share of cryptocurrency in the money supply of countries the world); systematic approach (to justify the prospects for the creation of national cryptocurrencies and the introduction of blockchain into the practice of the organization of fiat money circulation and the functioning of banking systems). Results. The main directions and consequences of the influence of cryptocurrencies on monetary policy and financial security of banking systems have been determined. The prospects of the introduction of blockchain into the practice of organization of the circulation of fiat money and the functioning of banking systems, as well as the positive aspects of the creation of national cryptocurrencies have been grounded.

scholarly journals Financial stability instruments for the banking systems of Ukraine

2020 ◽  
Vol 59 ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Financial Stability ◽  
Banking System ◽  
Classification Criterion ◽  
Financial Flows ◽  
Organizational Influences ◽  
Policy Goals ◽  
Credit Cycle ◽  
The Impact

The article focuses on the issues of systematization, analysis and development of the classification of instruments for ensuring the financial stability of the banking system, which is a determining factor in the formation of the necessary influences to ensure the financial stability of the banking system. For the selection and application of the toolkit that most precisely meets the goals, current conditions and priorities of ensuring the financial stability of the banking system, its classification was supplemented by the introduction of new classification features. In particular, in order to take into account the importance of maintaining the continuous circulation of financial flows in the banking system, their consistency and synchrony, we developed a classification criterion ‘for influencing the inflow and outflow of financial flows’, which makes it possible to use the appropriate instrument to complete such specific tasks as ensuring continuity, streamlining the cost of resources, smoothing the impact on interest rates of liquidity changes. Based on the presence of different levels of regulatory influences on ensuring the financial stability of the banking system – strategic and operational – the classification criteria ‘to influence the achievement of monetary policy operational goals’ and ‘to influence the achievement of strategic monetary policy goals’ were introduced. The classification criterion ‘impact on systemic/state-owned banks’ is justified by the significance of systemically important banks for ensuring the financial stability of the banking system, since a significant concentration of assets and capital in such banks requires the use of special tools aimed at preventing systemic risks. Taking into account the need for balancing the flows of credits provided by the banking system, the impact of risks on banking activities, the classification features of instruments for ensuring the financial stability of the banking system ‘by impact on the credit cycle’, ‘by key risks’, ‘by organizational elements’ were proposed. Allocation of the classification features of the instruments for ensuring the financial stability of the banking system will contribute to the achievement of targeting of regulatory and organizational influences and compliance with the criteria of rationality and adequacy when choosing specific instruments. This will create the basis for the selection and application of such a combination of instruments that most closely meets the goals, current conditions and priorities for ensuring the financial stability of the banking system.

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.

Methods for analysis of creative, information and knowledge-based factors in the implementation of the smart specialization model in the EU regions

2020 ◽  
pp. 153-162
Author(s):  
Taras Vasyltsiv ◽  
Olha Levytska
Keyword(s):  
Economic Growth ◽  
Methodological Approach ◽  
Regional Level ◽  
Integral Index ◽  
Knowledge Based ◽  
Eu Regions ◽  
Technological Modernization ◽  
Smart Specialization ◽  
The Impact ◽  
The Eu

The aim of the article is to study the existing and find new approaches to the analysis of creative, information and knowledge-based factors that determine social transformations and economic growth of the EU regions based on smart specialization. The methodological approaches to the assessment of the implementation of creative, information and knowledge-based factors in the economy are studied. A comparative analysis of international and regional systems for evaluating creative, information and knowledge-based factors of economic growth is made. A system of indicators of the authors’ three-vector approach (by the directions: (1) intellectualization of economy, (2) digitalization of economy and society, (3) technological modernization) to the analysis of creative, information and knowledge-based factors in the realization of the smart specialization model at a regional level are developed. The developed authors’ technique allows providing a comprehensive approach to the analysis of creative, information and knowledge-based factors in terms of the smart specialization model at the regional level. The methodology involves three groups of indicators in the areas of intellectualization, digitalization, and technological modernization. The calculation of the integral index is carried out based on the method of multidimensional weighted value taking into account the degree of the weight of indicators and sub-indices (subgroups and groups of indicators). The scientific novelty of the study is that the integral index allows making important analytical conclusions about the level of development of creative, information and knowledge-based economy, as well as the correlation of these processes with the socio-economic development of regions. The methodological approach can be implemented in domestic practice for evaluating the impact of the use of creative, information and knowledge-based factors on the development of regional economies and, accordingly, for achieving the objectives of regional smart specialization strategies.

Economic effects of non-additive development of industrial enterprises: an analytical review of the process and structural transformations

2021 ◽  
Vol 92 (1) ◽  
pp. 87-106
Author(s):  
Yaroslav Kudria
Keyword(s):  
Structural Changes ◽  
Methodological Approach ◽  
Industrial Sector ◽  
Structural Transformations ◽  
Economic Transformation ◽  
Economic Effects ◽  
Industrial Activity ◽  
Industrial Enterprises ◽  
Analytical Review ◽  
The Impact

The article presents a methodological approach to assessing the effects of non-additive development (NAD) of enterprises, which takes into account the impact of economic processes on the intensification of production activities of an enterprise and its socio-economic transformation. The author analyzed the current non-additive development of enterprises in the industrial sector of the Ukrainian economy by assessing the dynamics and identifying key trends depending on the main types of industrial activity. The results of the analysis were used to identify recent structural changes in the industrial sector.

scholarly journals CREDIT AND INVESTMENT ACTIVITY IN THE CONDITIONS OF THE COVID-19 PANDEMIC

2020 ◽  
Vol 1 (3) ◽  
pp. 51-59
Author(s):  
P. P. Pastushenko ◽  
V. M. Vasylkovskyi
Keyword(s):  
Interest Rates ◽  
Global Economy ◽  
Banking Sector ◽  
Banking System ◽  
Economic Consequences ◽  
Investment Activity ◽  
Lending Activity ◽  
The Individual ◽  
Investment Process ◽  
The Impact

The article is devoted to the practical analysis of credit and investment activity in the conditions of the COVID-19 pandemic. A vision of the factors influencing the COVID- 19 pandemic on the global economy has been formed. The dynamics of issued loans is analyzed and the scale of lending activity is calculated. It is noted that the impact of the COVID-19 pandemic on lending occurs in the presence of the following risks: declining incomes of potential borrowers limit their ability to service loans, and there is uncertainty about the recovery of income of citizens and businesses in the near future; deteriorating creditworthiness of borrowers and increasing credit risk lead to higher interest rates on loans, which limits the demand for them; banks are tightening lending standards, including lowering limits on credit products; restriction of borrowers' mobility, which has become an obstacle to obtaining a loan and is absolutely critical for those of them who do not use remote banking; lack of capital in banks to increase lending. Areas of participation of banks in the investment process are highlighted: mobilization of funds by banks for investment purposes; providing loans of investment nature; investing in securities (both at the expense of the bank and on behalf of the client). The comparison of credit and investment activity is carried out. It is proved that the period of the COVID-19 pandemic did not significantly affect the credit and investment activities of the banking system of Ukraine. It is determined that the economic consequences of the pandemic and the slowdown in economic growth may further affect the banking sector of Ukraine, and this will require unprecedented action at both the individual and national levels. Further research involves identifying different scenarios.

scholarly journals BANKS WITH FOREIGN CAPITAL IN UKRAINE: CONTROVERSIES AND PROSPECTS OF DEVELOPMENT

2020 ◽  
pp. 183-191
Author(s):  
Nataliia Prykaziuk ◽  
Mariia Satsiuk
Keyword(s):  
Foreign Capital ◽  
Significant Proportion ◽  
Banking System ◽  
Foreign Banks ◽  
Historical Method ◽  
Analysis And Synthesis ◽  
The One ◽  
National Economies ◽  
The Impact ◽  
Qualitative Changes

Introduction. Existence in the national economies of banks of foreign banking groups is today a form of financial globalization. The Ukrainian banking system is not an exception. Banks with foreign capital have a considerable influence on the domestic banking system and cause a complex of qualitative changes in it. The consequences of the presence of a significant proportion of foreign-owned banks in the domestic market are quite ambiguous: on the one hand, they contribute to the financial development of the country, and on the other – to conceal certain threats. Under these conditions, the issue of researching the activity of foreign banks in the banking system of Ukraine and identifying prospects for its development becomes highly relevant. Subject. Identification of peculiarities of functioning of banks with foreign capital in Ukraine, as well as influence on the development of the domestic banking system. Goal. Assessment of actual indicators of the presence of foreign capital, analysis of its impact on the formation and development of the domestic banking system, as well as identifying directions for improving the efficiency of banks in Ukraine. Method. The basis of the work was systematic and comparative approaches, which allowed to comprehensively consider the problem in the unity of all components of significant characteristics. The study used the following methods: comparative and statistical analyzes, the method of generalization, the relationship of quantitative and qualitative changes – to analyze the state of the banking system; induction and deduction, analysis and synthesis – in the study of practical results of foreign banks; historical method and method of generalization – in the study of key trends in the development of the banks with foreign capital. Scope. The practical value of the obtained results is determined by well-grounded conclusions about the impact of foreign-owned banks on the formation and development of the banking system of Ukraine and methodological recommendations for improving the efficiency of the banking system by implementing innovative solutions in its activities. Results. The actual indicators of the presence of foreign capital during the crisis and after the crisis are analyzed. The peculiarities of the development of foreign banks in Ukraine are revealed. The effects of the presence of foreign capital in the banking system have been determined. The directions of increasing the efficiency of the banking system in the conditions of uncertainty and rapid changes are suggested.

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