scholarly journals INCREASING EFFICIENCY OF THE BANKING INSTITUTIONS ACTIVITY

2018 ◽  
pp. 92-103
Author(s):  
Zhanna DOVHAN
Keyword(s):  
Customer Service ◽  
Business Processes ◽  
Banking Sector ◽  
Banking System ◽  
System Optimization ◽  
System Structure ◽  
Loyalty Programs ◽  
Effective Work ◽  
Banking Activity ◽  
Banking Institutions

Introduction. The problems of banking efficiency improvement have become very important in the conditions of economic instability and the period of increasing competition in banking services market. It is being changed both the banking system structure, and the business processes which were formed in it. Such changes demand the new approaches to reserves searching and banking system optimization objects. The innovation in the banking sector, methods of innovative bank development are the main in modern conditions. The purposeof this article is to identify the need to develop and apply innovative approaches in banking institutions to ensure their effective operation. Results. The article deals with the theoretical and practical principles of ensuring the efficiency of banking activity. It is characterized the main tendencies of the risk manifestation violation of banking activity efficiency. The trends of an effective development and the long-term growth of banking sector nowadays are described. The ways of formation and implementation of the innovative aspects of bank effective work providing system are analyzed. Special attention is paid to the importance of the cooperation between banks and financial companies. Conclusions. The problems of the banking system providing efficiency can be addressed customer service innovative technologies and the new products and services implementation, such as: to use the advanced hardware and software, to increas efficiency of personalization and channel optimization, digital and biometric identification, to use the large data, intellectual property and expanded analytics, credit marketplays, and artificial intelligence, to improv integrated multi-channel delivery and new loyalty programs.

Improvement of the Legislation of Ukraine as to the Provision of the Protection of Banking in the Conditions of European Integration

2018 ◽  
Vol 8 (7) ◽  
pp. 2165
Author(s):  
Alyona M. KLOCHKO ◽  
Nikolai P. KURILO ◽  
Svetlana I. ZAPARA ◽  
Irina V. ARISTOVA ◽  
Mykola I. LOGVINENKO
Keyword(s):  
Banking Sector ◽  
Criminal Responsibility ◽  
Criminal Liability ◽  
Banking System ◽  
Legal Protection ◽  
Legal Regulation ◽  
External Threats ◽  
Banking Activity ◽  
Banking Institutions ◽  
Criminal Legislation

Euro-integration course of Ukraine has caused an intensive development of its banking sphere. The inconsistency between the possible legislative consolidation of criminal responsibility for socially dangerous acts in the banking sector and the objective needs of society in such protection becomes more and more obviousis in Ukraine. The processes of ‘clearing’ the banking system from financial institutions that are insolvent along with the positive results have led to an increase in the level of criminalization of the banking sector. Abuses aimed at taking possession of money from creditors and borrowers of banking institutions have become widespread. External threats to the stable functioning of the banking sector are combined with internal misconduct of unscrupulous bank managers, officials and persons related to the banks. Approaches to legislative regulation of suspicious banking transactions and to identify their real volumes must be improved. The measures aimed at reducing of the level of criminalization of the banking sphere by establishing criminal liability of managers and persons connected with the bank for unlawful acts in the banking sector must be taken. The certain issues of legal regulation of banking activity in Ukraine on criminal legal level are considered. The provisions of international law on these matters are  analyzed and the main ways to optimize Ukranian criminal legislation to ensure the safety of banking activity are suggested. It turns out that the need for criminal legal protection of banking is conditoned by an increase in the public danger of these acts at the present stage of the functioning of society. This need is also confirmed by the crisis in the financial and banking spheres of the state, the need to eliminate the gaps in the current legislation on banking safety and the changes that took place in the banking sector of Ukraine in the context of increased integration with the EU.

Information Technology Development Risks in the Banking Sector

2020 ◽  
Vol 14 (3) ◽  
pp. 44-53
Author(s):  
N. E. Sokolinskaya ◽  
L. M. Kupriyanova
Keyword(s):  
Information Technology ◽  
Customer Service ◽  
Banking Sector ◽  
Technology Development ◽  
Banking System ◽  
Security Risk ◽  
On Line ◽  
Information Technology Development ◽  
Development Risks ◽  
Security Risk Management

The relevance of the article is because in parallel with the processes of introduction of innovations in the field of automation and computerization of the banking system, the number of types of banking risks associated with innovations in the field of on-line customer service and internal Bank reporting, as well as information systems. As a result of this article, we have studied the latest legislative acts of the Central Bank of Russia as a mega-regulator and summarized the practice of both individual credit institutions and the banking sector in the field of information technology development risks in the banking sector. To strengthen the development of new financial technologies in the digital economy, it is necessary to regularly discuss the emergence of new phenomena and innovations; to consider the possibility of further analysis of existing methodological developments to exchange best practices of banks. Building an effective it security risk management system is not a one-time project. Still, a complex process is important, focused on minimizing external and internal threats and taking into account the limitations on resources and time factor

scholarly journals Too Much Technology and Too Little Regulation? The Spectacular Demise of P2P Lending in China

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ding Chen ◽  
Simon Deakin ◽  
Andrew Johnston ◽  
Boya Wang
Keyword(s):  
Banking Sector ◽  
Central Government ◽  
Focal Point ◽  
Banking System ◽  
Internal Controls ◽  
Banking Activity ◽  
P2p Lending ◽  
Fundamental Uncertainty ◽  
The Government ◽  
Specific Regulation

Abstract In this paper we trace the rapid growth and spectacular demise of online peer to peer lending in China. Drawing on a series of interviews conducted in China in 2017 and 2018, we follow the expansion of the sector from the establishment of the first major platform in 2007, through the introduction of limited regulation in 2015 in response to a series of platform failures to the final de facto closure of the whole sector by the regulator in 2019–20. However, contrary to claims that technology would reduce risk, the new platforms appear to have given rise to new risks by connecting dispersed borrowers and lenders whilst the regulator had decided to leave the sector to evolve without specific regulation. While there were hopes that P2P lending might increase flows of finance to the SMEs that are excluded from the formal banking system, ultimately too much of the activity on the P2P platforms was characterised by what we term ‘transactional ambiguity’ and ‘legal fluidity’: it occurred on the fringes of legality, often amounting to Ponzi schemes, fraud or unlicensed banking activity. In contrast to the banking sector, where their intermediation role ensures that banks are the focal point in the event of borrower default, and conventional moneylending, where moneylenders bear the risk of default, defaults and platform failures in the P2P sector distributed losses far and wide around the country, often to lenders who were not capable of bearing them. Whilst the central government did not formally stand behind the P2P sector (as it does with banks because of the systemic implications of their operations), the government could not help but become involved where P2P lending transmitted losses to lenders who were dispersed around the whole country. Ultimately, central government announced a wholesale reversal of policy that led to the sector effectively being closed down. The episode cautions against overly optimistic claims that technology can eradicate the risks of fraud and fundamental uncertainty inherent in lending, and reminds us that, without appropriate regulation and adequate internal controls, financial institutions will always operate in ways that result in instability.

CONSOLIDATION WITHIN THE BANKING SECTOR AND SAVINGS DEPOSITS: EFFECTS ON LIQUIDITY, OUTPUT, AND PROFITABILITY WITHIN THE NIGERIAN ECONOMY

2015 ◽  
Vol 10 (01) ◽  
pp. 1550001 ◽  
Author(s):  
OGHENOVO ADEWALE OBRIMAH ◽  
CHIDINMA EDITH EBERE
Keyword(s):  
Social Welfare ◽  
Interest Rates ◽  
Banking Sector ◽  
Banking System ◽  
System Structure ◽  
Efficiency Frontier ◽  
Loan Portfolio ◽  
Welfare Benefits ◽  
Banking Structure ◽  
Effectiveness Of Regulation

In this study, we find savings deposits have contributed significantly to the effectiveness of regulation induced consolidation within the banking sector in so far as improvements in banking system structure, output, profitability and competitiveness are concerned. Specifically, we find savings deposits are key parameters in the transition from a banking structure within which profitability is primarily determined by liquidity during the pre-consolidation period (2007–2008) to a banking structure within which profitability is primarily a function of loan portfolio growth (output) during the post-consolidation period (2010–2012). In spite of the increase in importance of savings deposits for banking system competition, output, or profitability during the post-consolidation period, savings deposit rates have decreased by about 50% between the pre- and post-consolidation periods. Interest rates on savings deposits also do not lie on the efficiency frontier for loan production. Combined, our findings indicate the benefits of consolidation that accrue from savings deposits have yet to translate into social welfare benefits for banks' retail customers.

scholarly journals Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

2019 ◽  
Vol 14 (4) ◽  
pp. 22-33
Author(s):  
Lyubov Khudoliy ◽  
Oleg Bronin
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Basel Iii ◽  
Banking Supervision ◽  
Macroeconomic Shocks ◽  
Bank Supervision ◽  
Banking Institutions ◽  
The Global Financial Crisis

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

scholarly journals ANTI-CRISIS REGULATION OF BANKING BUSINESS: CASE OF AZERBAIJAN

2020 ◽  
Author(s):  
Fakhri Fuad Murshudli ◽  
◽  
Muslum Mursal Mursalov ◽  
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Business Case ◽  
Independent Field ◽  
Banking Activity ◽  
Banking Business ◽  
The Republic ◽  
Definition Of

The article examines the experience of the Republic of Azerbaijan (RA) in anti-crisis regulation of the banking sector. The author reveals the current state of the banking system of RA. Its development is monitored from three time perspectives – on the eve of the crisis (2005-2007), in the crisis (2008-2009) and post-crisis periods (2010-2020). The characteristics and features of each of them are revealed. The conceptual essence of the definition of “anti-crisis management” is revealed. The factors contributing to the study of anti-crisis management (regulation) of banking activity as an independent field of scientific research, as well as the distinctive features of its methods and tools are highlighted. The article analyzes the impact of anti-crisis regulation on the banking system of RA in the context of the global economic crisis, as well as anti-crisis measures taken by the country’s monetary authorities at various stages of the modern financial collapse. The authors concluded that these measures are inconsistent, and that it is necessary to further improve regulation and supervision in this area, aimed at achieving high financial stability of the banking system, primarily due to an adequate level of capitalization, optimal indicators of financial reserves and liquidity.

scholarly journals MECHANISMS OF STATE REGULATION OF ANTI-CRISIS MANAGEMENT OF ECONOMIC SECURITY OF BANKING INSTITUTIONS OF UKRAINE

10.31732/ms ◽  
2020 ◽  
Author(s):  
Yana Koval
Keyword(s):  
Crisis Management ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Economic Security ◽  
State Regulation ◽  
International Standards ◽  
Wide Range ◽  
Banking Institutions ◽  
The Global Financial Crisis

An important condition for sustainable economic growth of the country is the reliability and predictability of the banking sector of the economy. The global financial crisis, which has also affected Ukraine, indicates the inconsistency of domestic monetary policy with the requirements of the economic environment. Bringing in line with international standards of banking institutions revealed internal and external risks and threats that negatively affected the functioning of the entire banking system and led to a decrease in the number of Ukrainian banks from 180 at the beginning of 2014 to 77 at the beginning of 2019. Negative changes which took place in the banking system of Ukraine reduced the overall level of its economic security and necessitated the development of an effective mechanism for state regulation of anti-crisis management of economic security of banking institutions in Ukraine. The monograph is devoted to solving a scientific problem related to the development of a mechanism for state regulation of anti-crisis management of economic security of banking institutions of Ukraine on the basis of the development of conceptual, methodological and applied components. In the course of the work the theoretical bases of realization of the mechanism of state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are investigated. Diagnosis of the current state of state regulation by anti-crisis management of economic security of banking institutions. The directions of improvement of the mechanism of the state regulation by anti-crisis management of economic safety of banking institutions of Ukraine are developed. The monograph is designed for a wide range of scientists, managers, specialists in public administration and economic security, teachers, graduate students and students of higher education institutions studying the mechanisms of state regulation of crisis management of economic security of banking institutions in Ukraine.

scholarly journals MODEL OF ASSESSMENT OF THE IMPACT OF MAIN CHALLENGES OF MODERNITY ON EMPLOYMENT IN BANKING SECTOR ACCORDING TO STRESS TESTING METHODOLOGY

2021 ◽  
pp. 214-227
Author(s):  
O.O. Domuz ◽  
Keyword(s):  
Stress Testing ◽  
Banking Sector ◽  
Extreme Values ◽  
Stress Test ◽  
Banking System ◽  
Macroeconomic Factors ◽  
Criteria And Indicators ◽  
Banking Institutions ◽  
System 2 ◽  
The Impact

According to results of the study, globalization factors that require specific approaches to analysis in the context of changes and transformations that occur in socio-economic sphere of banking system; A model of stress testing to assess the impact of global factors on changes in the level and structure of employment of employees of banking institutions, based on the use of tools to find extreme values ​​at the level of individual banking institutions and the banking system as a whole are showen; In order to test the model, the stages of its application are formed: 1. selection of criteria for stress testing of changes in the bank's employment system; 2. the choice of indicators that characterize changes in the level and structure of employment of a bank; 3. conducting stress testing of criteria and indicators based on the use of tools for detecting extreme quantities; 4. construction of a stress test map by periods; 5. comparison of stress test maps of impact criteria and indicators, analysis of common sensitivity points in order to identify the causes and degree of influence of global factors; Within the framework of the model, special attention is paid to analytical methods to determine the impact and sensitivity of the employment response to trends and changes in the macro- and microeconomic environment; Using the method of determining extreme values, the existence of a relationship between the criteria that characterize the financial and economic performance of national banks and the degree of transformational changes in bank employment; As a result of the construction of stress test maps, it was determined that the criteria of financial and economic activity of banks and employment indicators in banking sector are highly sensitive to crises in respective periods, but respond differently to macroeconomic factors of different periods; The proposals on the expediency and necessity of using the model of stress testing in national banking system are formed.

scholarly journals Management and legal aspects of the symbiosis of banking institutions and fintech companies in the credit services market in the context of digitization

2021 ◽  
Vol 39 (7) ◽  
Author(s):  
Viktoriia Vovk ◽  
Alina Denysova ◽  
Kateryna Rudoi ◽  
Tetiana Kyrychenko
Keyword(s):  
Banking System ◽  
Legal Aspects ◽  
Strategic Development ◽  
Long Run ◽  
Banking Activity ◽  
Banking Business ◽  
Banking Institutions ◽  
Development Goals ◽  
Use Of Internet ◽  
The Eu

The article examines the features of banks' lending activities and substantiates the prerequisites for strengthening their cooperation with financial companies, systematizes internal and external innovations used in the process of digitalization of the banking business. The periodization of the banking system from 2005 to the present in accordance with the strategic development goals and stages of the bank's life cycle has allowed to justify the relevant digitalization policy, appropriate for each period. It has been proved that the symbiosis of banks and fintech companies helps to increase the competitiveness and profitability of business in the long run. The importance of introduction of banking innovations in the crediting market as the most profitable direction of banking activity has been substantiated, the forecast of change in net interest income of Ukrainian banks for the post-pandemic period has been made. Based on the fact that the indicator of the country's success in implementing the norms and measures of the Digital Agenda for the EU and Digital Single Market is the Digital Economy and Society Index (DESI), which is determined for each EU country annually, the paper makes forecast changes in its components: Connectivity, Human Capital, Use of Internet, Integration of Digital Technology, Digital Public Services. The main factors that inhibit the processes of strengthening the interaction between banks and FinTech companies in Ukraine have been identified. The expediency of improving the current legislation of Ukraine taking into account the best European practices in the field of cooperation between banks and FinTech companies has been substantiated.

scholarly journals Factors Influence the Adoption of the Islamic Banking System: Customers Perception in Pakistan

ETIKONOMI ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 275-286
Author(s):  
Muhammad Masood Mir ◽  
Daniyal Iftikhar ◽  
Osama Ahsan ◽  
Nousheen Abbas Naqvi
Keyword(s):  
Customer Service ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Analysis Tool ◽  
Customer Preferences

The purpose of this paper is to analyze customer perceptions of the banking sector after the advent of the Islamic banking system. This research uses structural equation modeling as its analysis tool. The results of the analysis illustrate that the range of customer service and the length of the bank-customer relationship has a positive impact on customer preferences in choosing Islamic banking. This study provides a framework not only for the banking sector but also for other organizations. This study is an effort so that each organizational policy is appropriate to get customer preferences and optimal results in the form of satisfied and loyal customers.JEL Classification: G21, G29

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