scholarly journals THE ROLE OF TRANSNATIONAL BANKS IN THE TRANSMISSION OF GLOBAL SYSTEMIC RISK

2017 ◽  
pp. 170-179 ◽  
Author(s):  
Oleksandr MOMOT
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
National Level ◽  
Banking System ◽  
Existing Problems ◽  
Effective Implementation ◽  
Cross Border ◽  
Multinational Banks ◽  
Risk Identify

Introduction. One of the manifestations of financial globalization is the formation and development of cross-border links of transnational banks. This expands opportunities for investment and contributes to the economic development of many countries. At the same time, the increasing complexity of financial ties strengthens the cross-border interdependence of transnational banks, leading to the transfer of financial shocks that arise in some countries to others. The purpose. The article aims to explore the role of multinational banks in the transmission of global systemic risk, identify existing problems supervision of multinational banks as globally systemically important financial institutions and identify solutions. Results. The article deals with the processes of transmission by transnational banks of global systemic risk in the framework of the “theory of infection of financial markets”. The influence of the “general creditor effect” on the spread of crisis phenomena between the economies of different countries is analyzed. The direction of influence of cross-border links of transnational banks on financial stability of the banking system of the country is clarified. Approaches to the identification of globally systemically important banks have been highlighted in accordance with international practice, and tasks have been identified to strengthen regulation and supervision of the activities of transnational banks. Conclusion. Today, regulators have limited ability to prevent the transmission of global systemic risk multinational banks. Many institutional mechanisms exist at national level and aimed at maintaining the financial stability of banking systems and crisis management of banks, there are no globally. However, only coordinated decisions on measures of overcoming the crisis can ensure effective implementation of anti-crisis programs globally

scholarly journals Small Business And Entrepreneurship Financing System In Uzbekistan: Historical Analysis And Approaches

2021 ◽  
Vol 03 (04) ◽  
pp. 393-401
Author(s):  
Fayzulla Tolipov ◽  
Keyword(s):  
Small Business ◽  
Banking System ◽  
Historical Analysis ◽  
Business Environment ◽  
Point Of View ◽  
Development Programs ◽  
Financing System ◽  
Existing Problems ◽  
History Of

The article describes the specifics of the system of financing of small business and entrepreneurship in the recent history of Uzbekistan, the funds allocated for small business and entrepreneurship, the activities of commercial banks and the financial and banking system, some problems in the field. It also noted that since the early days of independence, a unique business environment has been created in the country to support the interests of entrepreneurs in the framework of development programs in this area, data on the role of financial mechanisms in the further development of small business and entrepreneurship in the country have been studied from a historical point of view. The article highlights the positive situation in the country's macro and microeconomic indicators, ie the active participation of banks in attracting local entrepreneurs and foreign investment, the existing problems in this area and the measures taken to address them. It analyzes the important factors and strategies of banks' participation in the development of business and entrepreneurship.

scholarly journals The Application of Macroprudential Capital Requirements in Managing Systemic Risk

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-15
Author(s):  
Hong Fan ◽  
Chirongo Moses Keregero ◽  
Qianqian Gao
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
Banking System ◽  
Capital Requirements ◽  
Equity Capital ◽  
Risk Allocation ◽  
Regulatory Capital ◽  
Allocation Mechanism ◽  
Bank Equity ◽  
Almost All

When setting banks regulatory capital requirement based on their contribution to the overall risk of the banking system we need to consider that the risk of the banking system as well as each banks risk contribution changes once bank equity capital gets redistributed. Therefore the present paper provides a theoretical framework to manage the systemic risk of the banking system in Nigeria based on macroprudential capital requirements, which requires banks to hold capital that is proportional to their contribution to systemic risk. Using a sample of 10 Nigerian banks, we reallocate capital in the system based on two scenarios; firstly in the situation where the system shocks do not exist in the system, we find that almost all banks appear to hold more capital; secondly, we also consider the situation where the system shocks exist in the system; we find that almost all banks tend to hold little capital on four risk allocation mechanisms. We further find that despite the heterogeneity in macroprudential capital requirements, all risk allocation mechanisms bring a substantial decrease in the systemic risk. The risk allocation mechanism based on ΔCoVaR decreases the average default probability the most. Our results suggest that financial stability can be substantially improved by implementing macroprudential regulations for the banking system.

scholarly journals Indirect taxation of cross-border e-trade: features of national and intergovernmental regulation

2020 ◽  
Vol 6 (1) ◽  
pp. 256-280
Author(s):  
Alexander I. Pogorletskiy ◽  
Mariya V. Keshner
Keyword(s):  
Global Economy ◽  
Rapid Development ◽  
National Level ◽  
Value Added ◽  
Modern World ◽  
General Description ◽  
Indirect Taxation ◽  
Cross Border ◽  
Tax Regulation

The contemporary research in the field of economic and legal assessment of e-trade development, published in Russia, provides a general description of the situation and prospects for the development of international online transactions. At the same time, the aggregate features of taxation of cross-border e-commerce (which is the paper’s subject) are highlighted, without focusing on indirect methods of tax regulation (which are the object of the paper). Based on previous theoretical, methodological and practical studies, the authors systematize the knowledge about cross-border e-commerce operations’ indirect tax regulation both at the national and interstate level, defining the main approaches to taxation in this area. They also propose to focus on the priority of the regulatory (stimulating) role of taxes in their application as tools for influencing international online trading transactions. The main provisions of the paper reveal the principles and features of collecting value-added tax (VAT), excise, customs, and postal duties in the field of export-import e-trade operations with goods, digital content, and electronic services in national tax systems. In addition, this paper characterizes the main directions of international coordination of cross-border e-commerce indirect taxation. The authors have proven their hypothesis that the rapid development of cross-border e-trade in the modern world makes this field of international economic relations attractive enough to enhance the fiscal role of indirect taxation at the national level; however, the difficulties for the global economy early in the third decade of the 21st century require prioritizing the regulating (stimulating) role of indirect taxes to support global economic and trade operations growth, including its electronic segment.

Money laundering and financial stability: does adverse publicity matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahriye Basaran-Brooks
Keyword(s):  
Money Laundering ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Banking System ◽  
Public Confidence ◽  
Content Type ◽  
Reputational Risk ◽  
The Global Financial Crisis ◽  
The Impact

Purpose Already suffering reputational damage from the global financial crisis, banks face a further loss of trust due to their poor money laundering (ML) compliance practices. As confidence-driven institutions, the loss of reputation stemming from inadequate compliance with regulations and policies labels banks as facilitators of crime and destroys public trust both in the bank itself, peer banks and the wider banking system. Considering the links between financial stability and adverse publicity about banks, this paper aims to critically examine the implications of ML-specific bank information on financial stability. Design/methodology/approach This paper adopts a content analysis and a theoretical discussion by critically evaluating the role of bank compliance information on stability with references to recent case studies. Findings This paper establishes that availability of information regarding a bank involved in or facilitating ML might pose a threat to financial stability if bank counterparties cut their ties with the bank in question and when bank stakeholders show a strong and sudden negative reaction to adverse publicity. Though recent ML scandals have not caused immediate instability, general loss of confidence associated with reputational risk have had a destabilising effect on affected banks’ capital and liquidity. Originality/value There has been surprisingly little discussion to date on the impact of publicly available bank information on financial stability and public confidence within the ML compliance framework. This paper approaches the issue of publicly available banking compliance information solely through the prism of public confidence and reputational risk and its impact on macro-stability by examining recent ML scandals.

Impact of Crypto-Asset Trade on Financial Stability

2020 ◽  
pp. 210-232
Author(s):  
Nader Trabelsi
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
Financial System ◽  
System Stability ◽  
Copula Model ◽  
Copula Approach ◽  
The Stability ◽  
The Empirical Analysis ◽  
Global Financial System

The chapter attempts to test the hypothesis that cryptocurrencies are real independent financial instruments that pose no danger to global financial system stability. For the empirical analysis, the authors use data related to bitcoin and widely traded asset classes. They also utilize the copula approach as well as the CoVaR model. The results show a significant role of crypto-asset market in the stability of global markets. Precisely, they find a dependence between bitcoin and oil prices defined by a normal copula model. The empirical results regarding the systemic risk show that extreme changes in bitcoin prices may have an adverse effect on equity and gold markets. There are positive and significant effects of EUR, JPY, and WTI markets when bitcoin goes down. The authors have also shown that after 2016 the virtual market sudden changes are more likely to raise the whole regular financial system losses, except the energy market. These results are important for policymakers and investors.

THE ROLE OF THE BANK OF RUSSIA IN REGULATING THE ACTIVITIES OF CREDIT INSTITUTIONS

2021 ◽  
Vol 3 (197) ◽  
pp. 70-75
Author(s):  
M.B. Tershukova ◽  
◽  
V.S. Abramov ◽  
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
The Relationship ◽  
Credit Institutions

The article presents a study of the regulation of credit institutions activities carried out by the Bank of Russia. The relationship between the strengthening of the banking system and monetary regulation is revealed. In the process of monetary regulation, banks are influenced to improve their financial stability, which ultimately leads to the strengthening of the banking system. The author's suggestions for improving the regulation of the activities of credit institutions are presented.

Makroprudentielle Aufsicht

2019 ◽  
Author(s):  
Vincenz Bergk
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
National Level ◽  
Comparative Approach ◽  
Global Level ◽  
European Level ◽  
Single Supervisory Mechanism ◽  
Eu Member States ◽  
The Usa ◽  
The Uk

In this comprehensive and clearly structured work, the author addresses the various facets of macroprudential supervision using an impressive functional and comparative approach (which involves Germany, the UK, Slovenia and the USA). He assesses how macroprudential actors should be organised and which powers are necessary for them to fulfil their tasks appropriately. In doing so, he not only includes selected actors from EU Member States, but also US ones. At the European level, the European Systemic Risk Board (ESRB) is the outstanding macroprudential body. Nevertheless, the author attempts to determine which position is assigned to the Single Supervisory Mechanism (SSM) in the macroprudential system at this level. Additionally, he examines the relevant actors involved in safeguarding financial stability at a global level and the forms of macroprudential regulation from the global level to the national level.

scholarly journals Review of the functions of state banks in the system of ensuring the financial stability of the banking system of Ukraine

2018 ◽  
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Stability ◽  
Banking System ◽  
Data Envelopment ◽  
Dea Model ◽  
Credit Risks ◽  
System A ◽  
Banking Market

Taking into account the extremely important role of state banks for the development of the country (today, they are, in fact, create the banking market), there is a need to re-orient their activity content from generating systemic risk to generating systemic stability. Among the key components of financial stability highlighted by the central banks of the countries and which, using the tools of macro-prudential regulation, ensure the financial stability of the banking system, a special place is given to the ability of the latter to smoothly perform its functions. The effectiveness of such implementation is determined to be the prior condition for such operational continuity. For this purpose, methodical support is proposed for revising the functionality of Ukrainian state banks in terms of their efficiency, determined by the DEA model (Data Envelopment Analysis) with input parameters of customer funds, operating expenses, reserves for credit risks, and output parameters of interest income. The calculations of the performance indicators of state banks by the DEA model were made using DEAOS (Data Envelopment Analysis Online Software). The values of the efficiency indicator were calculated, the ranking of banks was conducted, and the optimal values of input and output parameters for inefficient banks were given. Recommendations were made to improve the efficiency of their activities: balancing the volume of customer funds with the volume of active operations; reducing operating expenses and reserves for credit risks by increasing the quality of loan portfolios. In conclusion, by using the DEA model it is possible not only to determine the measure of the efficiency of state-owned banks in the financial market, but also to make management decisions regarding the adjustment of the main indicators of their activities. This, ultimately, will contribute to raising the level of financial stability not only of state banks, but also of the entire banking system of Ukraine.

scholarly journals ON THE IMPORTANCE OF TRADITIONAL LENDING ACTIVITY FOR BANKING SYSTEMS STABILITY

2020 ◽  
pp. 2050005
Author(s):  
STEFANO ZEDDA ◽  
MICHELE PATANÉ ◽  
LUANA MIGGIANO
Keyword(s):  
Monte Carlo Simulation ◽  
Monte Carlo ◽  
Systemic Risk ◽  
Financial Stability ◽  
Banking Systems ◽  
Comprehensive Income ◽  
Lending Activity ◽  
Lower Correlation

In this paper, we analyzed the role of banks’ traditional lending on systemic stability. Firstly, we quantified the effect of correlation among banks’ results on systemic risk through Monte Carlo simulation. Secondly, we verified how traditional lending affects banks’ results correlation. Finally, combining the two effects, we assessed the importance of bank traditional lending on financial stability. Our results suggest that banks devoting a higher share of their assets to traditional lending show a lower correlation of their comprehensive income, thus having a mitigation effect on systemic stability.

The Research of Dong Xi Ancient Town in Chongqing, China

2013 ◽  
Vol 409-410 ◽  
pp. 945-950
Author(s):  
Yin Pan ◽  
Qin Yan ◽  
Tie Jun Zhou
Keyword(s):  
Cultural Heritage ◽  
Historical Development ◽  
National Level ◽  
Present Situation ◽  
Social Conditions ◽  
Architectural Heritage ◽  
Regional Economic ◽  
Existing Problems ◽  
Data Basis

The Dong Xi ancient town was the second batch of national-level historical and cultural town in China. It had act as the important role of in regional economic, social and cultural and had different roads of historical development. Therefore, its great significance of the research in the Dong Xi ancient town for the conservation of heritage. Based on the survey of the Dong Xi ancient town, contains the Dong Xis history and present situation, this paper summarized and organized the architectural heritage, cultural heritage and social conditions of the ancient town. The existing problems in the conservation of the Dong Xi ancient town were analyzed and discussed and provided the data basis for the scientific conservation of historical and cultural heritage.

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