scholarly journals INNOVATIVE VECTORS OF BANKING SYSTEM DEVELOPMENT

2019 ◽  
pp. 8-25
Author(s):  
Oleksandr DZYUBLYUK
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Business Models ◽  
Banking System ◽  
Innovation Activity ◽  
Necessary Condition ◽  
Successful Implementation ◽  
Customer Needs ◽  
Theoretical Approaches ◽  
The Stability

Introduction. In a context of increasing competition in the banking sector, the systematic introduction of advanced products and technologies is a key to successful implementation of business models and the effective conquest and maintenance of relevant segments of the financial market. Therefore, the necessary condition for the effective operation of banks is the development and implementation of an appropriate innovation strategy aimed primarily at optimizing management of resource potential, better meeting existing customer needs, as well as the development and technical improvement of services for an adequate response to all new market demands in accordance with economic changes in the globalized environment. Purpose. The purpose of this article is to substantiate and systematize theoretical views on understanding the essence and main directions of development of the banking system on an innovative basis. The formation of an effective management system for innovation activities should become the most important condition for ensuring the efficiency of the work of commercial banks and achieving their competitive advantage both in the domestic market and in the globalized financial space. Results. The basic theoretical approaches to the assessment of the essence of innovation activity of banks are analyzed and systematized, and the necessity of its consideration from institutional positions for assessing the effectiveness of innovations is determined. The main vectors of activation of the innovation process in commercial banks are substantiated: 1) introduction of innovative banking products and improvement of existing services capable of satisfying the broadest possible range of consumers’ needs in the financial market; 2) change of the concept of advancement of banking services to the users, introduction of innovative methods of their sales and the latest marketing strategies; 3) modernization of organizational structures of the bank and its structural subdivisions in order to increase the efficiency of the operation and speed of implementation of management decisions. Conclusions. Banking institutions, when formulating their own strategy, should consider the innovative vector of development as the most important means of ensuring the stability of its functioning, economic growth and competitiveness, since the efficiency of the bank depends on its ability to meet certain customer’ needs. The results of implementation of such innovations may be reflected in expansion of the client base of the bank, optimization of its branch network and organizational structure, increase of the share of the financial market, reduction of transaction costs of banking operations, and also in ensuring the stability of the bank’s functioning in the long run.

scholarly journals Efficiency of Commercial Banking in Developing Countries

Mathematics ◽  
2021 ◽  
Vol 9 (14) ◽  
pp. 1597
Author(s):  
Violeta Cvetkoska ◽  
Katerina Fotova Čiković ◽  
Marija Tasheva
Keyword(s):  
Developing Countries ◽  
Commercial Banks ◽  
Feasible Solution ◽  
Banking System ◽  
Efficiency Score ◽  
Commercial Banking ◽  
Real Situation ◽  
Super Efficiency ◽  
Bank Management ◽  
The Stability

The aim of this paper is to evaluate the relative efficiency of commercial banks in three developing countries in Europe (North Macedonia, Serbia, and Croatia) in the period from 2015 to 2019, and to provide targets for improvement for the inefficient banks by using DEA. The variables are selected under the income-based approach. Based on the output-oriented BCC model, unusual results are obtained for a few commercial banks in each country, that is, they are BCC relative efficient, which is contrary to the real situation. In order to identify outliers that can affect the efficiency results, a super-efficiency procedure is applied so that banks with a super-efficiency score higher than 1.2 (outliers) or for which a feasible solution was not found are considered in detail and removed, and then the output-oriented BCC model is rerun. Based on the obtained results, the Macedonian commercial banking system shows the highest efficiency (91.1%), followed by the Croatian (90.9%) and the Serbian (81.9%) banking system. The estimated targets for improvement of the inefficient commercial banks could help their top bank management in better resource allocation and making fact-based and faster decisions by which they can improve the operation of the banks they lead and contribute to the stability of the financial system.

MODELING THE INFLUENCE OF THE STRUCTURE AND QUALITY OF ASSETS ON THE PROFITABILITY OF A COMMERCIAL BANK

2021 ◽  
pp. 10-18
Author(s):  
Alena S. Kudriavtseva ◽  
Olga G. Arkadeva
Keyword(s):  
Economic Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Factors Affecting ◽  
Correlation And Regression Analysis ◽  
The Stability ◽  
Classical Economic ◽  
Sound Management

In modern conditions, the methods of classical economic analysis are not enough to solve the problem of bank stability. This requires the development of methods and tools to analyze the current situation in the bank and to develop sound management decisions aimed at ensuring the stability of the bank. The article notes that the analysis of the influence of the structure and quality of assets on the profitability of commercial banks is an important step for assessing the financial position and reliability of a bank, and a method is proposed for constructing a model of the dependence of bank’s profitability on the factors that determine it. The scientific sources were the works of Russian and foreign researchers in the field of modeling and characteristics of the banking system, financial stability of credit institutions, assessment of the creditworthiness of potential borrowers, system organization and information technology. The article uses the methods of economic analysis, differential calculus and mathematical statistics, as well as the achievements of the main scientific schools dealing with the problems of economic and mathematical modeling and economic analysis of banking. In order to determine the most significant economic factors affecting the profitability of commercial banks, generalization of the theoretical, methodological and applied aspects of studies devoted to the study of the influence of the structure and quality of assets on the profitability of commercial banks was carried out, and a correlation and regression analysis was made. The model presented in the article can be used to predict changes in the profitability of Russian commercial banks and to predict promising directions for growth in profit and profitability of the bank.

Improvement of Premium Banking Services: The Need and the Potential

2021 ◽  
pp. 158-176
Author(s):  
Tatiana V. Schastnaya ◽  
◽  
Arina V. Horoshilova ◽  
Keyword(s):  
Financial Market ◽  
Commercial Banks ◽  
Banking System ◽  
Quality Parameters ◽  
Economic Interests ◽  
Banking Services ◽  
Balanced Development ◽  
Real Value ◽  
Financial Awareness ◽  
Market Premium

The need for a transition to an intensive and innovative development path is overdue in the banking system of Russia. The quality parameters of the premium banking service program for top-5 banks were analyzed. Factors of interest to the banks and their clients were identified. Suggestions on possible ways to improve premium banking programs were formulated. For the analysis, the authors selected banks with the most interesting bonus programs. The contextual analysis of the qualitative parameters of the premium banking programs allowed identifying these programs’ important components and possible problems. These are: the digitalization of banking services, which actively penetrates the segment of the wealthy client; lower business margins; search for the real value of a premium service for the customer. In the authors’ opinion, the most urgent problem is the combination of trends in the digitalization of the banking services and the needs of individualization of the approach to servicing a premium client. The main directions for improving premium banking programs were formulated. They are associated with improving the skills of the program staff; searching for new additional offers and organizing operational feedback for this; expanding the line of financial products offered to premium customers, for example, investment and insurance products, legal services. Premium banking provides a premium client with a special status in terms of service individualization, involves working with target segments, and offers bonus programs of banking products and services aimed at specific target audiences. Therefore, premium banking encourages the bank to identify and differentiate different target groups (audiences) by income level, investment goals, etc.; to conduct events (training seminars, conferences, presentations) to attract individuals to the financial market. Premium banking provides a balance between the economic interests of the company, the financial market and the banking system, commercial banks and individuals. Therefore, the task of developing this segment of the banking services market becomes relevant, meeting the modern needs of the economy. Primarily, the introduction and improvement of premium banking are beneficial to commercial banks themselves, as it increases their level of competitiveness, contributes to the formation of customer loyalty, thus allowing for a more complete satisfaction of customer needs in special services. Currently, improvements in premium banking could also contribute to raising the financial awareness of private clients concerning investment opportunities in the financial markets that would provide effective and balanced development of the financial market of Russia.

Features of Forming of Profits of Commercial Banks in Terms of Coronaries

2020 ◽  
Vol 8 (6) ◽  
pp. 75-82
Author(s):  
A. Novikov ◽  
A. Zverev ◽  
M. Mishina
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Internal Factors ◽  
Russian Economy ◽  
Internal Characteristic ◽  
The Stability ◽  
Constituent Elements ◽  
The Impact ◽  
Entire Economy

A significant role of the banking system in ensuring the functioning of the entire economy, by means of organizing the movement of borrowed capital between individual industries and the implementation of financial needs is achieved only if this system, and therefore its constituent elements, are stable. In this regard, the stability of the banking system should be considered as a fundamental internal characteristic, which ensures the existence and stable development of the Bank in a market economy under the influence of external and internal factors. In 2020, commercial banks were faced with the impact of the coronavirus pandemic on the Russian economy and the banking system in particular. At the same time, the current situation of banks ' functioning is characterized not only by the presence of a corona crisis, but also by the internal development of the system itself, which, following the uberization of the world economy, dictates to commercial banks the need to develop and implement financial technologies and form ecosystems. In these conditions, the need for commercial banks in financial resources increases, which is reflected in the increasing role of profit in the Bank's activities and development. This article focuses on the impact of the coronavirus pandemic on the banking system of the Russian Federation and the economy as a whole, and also identifies the features of profit formation and the specifics of the functioning of commercial banks in the coronavirus crisis period.

scholarly journals FINANCIAL STABILITY OF A BANK - FACTOR OF STABILITY OF BANKING SYSTEM

2018 ◽  
pp. 5-11
Author(s):  
Andrii Ramskyi ◽  
Inna Budnichenko
Keyword(s):  
Commercial Banks ◽  
Financial Stability ◽  
Banking System ◽  
Development Program ◽  
Financial Sustainability ◽  
Internal Factors ◽  
Financial Condition ◽  
Stage Of Development ◽  
Banking Institutions ◽  
The Stability

The article is devoted to the analysis of the financial stability of Ukrainian banks at the present stage of development and the identification of the main factors of influence that are associated with it. The main tendencies of development of the banking system of Ukraine are considered. The present state of the banking system of Ukraine is determined. Financial stability plays a significant role in planning the activities of commercial banks. In general, its indicators reflect the level of riskiness of the functioning of the entity of the banking system. Managing financial sustainability has a significant impact on the functioning of banks. That is why it is necessary to create special control departments in banking institutions. The research of financial stability of banks is based on financial sustainability indicators developed and used by the IMF and the World Bank as the basis for the "Integrated Financial Sector Development Program until 2020". The necessity of applying different methods for evaluating the financial stability of commercial banks has been established in order to identify a wider range of problems related to the efficiency of the functioning of the banking system. The description of  two main groups of factors, under the influence of which the financial stability of banks  undergoes changes, is presented. It was revealed that external factors have a more significant impact on the financial stability of a bank. In particular, the factors of mega environment have become more important when banks enter the international financial space. Internal factors lie mostly in the management plane, and it is just the inefficient management of the bank that leads to the disruption of its stable financial condition. Specific features of management of financial stability and methods of its evaluation are considered. The analysis of economic standards of the banking system of Ukraine is carried out. The measures are proposed to minimize the risks and maintain the stability of banking institutions at the required level for normal functioning in modern conditions. It has been proved that providing, supporting, analyzing and evaluating the financial stability of commercial banks is a driving force in the development of the banking system, and hence the entire Ukrainian economy.

scholarly journals Development of Regional Commercial Banks in Digital Economy: Risks and Opportunities

2021 ◽  
pp. 181-193
Author(s):  
Natalia Simaeva ◽  
◽  
Inna Ryabova ◽  
Keyword(s):  
Commercial Banks ◽  
Business Models ◽  
Banking System ◽  
Digital Economy ◽  
Digital Transformation ◽  
The State ◽  
Banking Competition ◽  
Regional Bank ◽  
Regional Banks ◽  
Banking Credit

The article is devoted to the analysis of the activity of regional commercial banks. The purpose of this article is to identify risks and prospects for the development of regional commercial banks in the digital economy. The author explores the concept of a regional bank, analyzes the peculiarities of the activities of regional banks in modern conditions of increasing banking competition. The article analyzes the state and trends of the development of the banking regional sector from the point of view of efficiency increase of their activities. It is shown that the number of regional banks is constantly declining, and a number of constituent entities of the Russian Federation do not have any longer in the structure of their regional banking system banking credit organizations chartered in their territory as a legal entity. The authors concluded that the development of regional banks can be efficient only through the qualitative growth of each individual regional bank, since in quantitative terms this sector of the Russian banking systems will only decrease. As an example the activity of Rostov bank Tsent-Invest and the regional bank of the Republic of Tatarstan Ak Bars Bank are shown, which occupied certain niches in the Russian banking system and fully compete with foreign banks. To identify and assess the current risks of the activity of regional banks specific characteristics of the digital transformation of the banking industry are determined. As the main risks of development, the authors identified the following ones: risk of increased banking competition, on the one hand, and the risk of monopolization of the banking market, on the other; risk of underfunding of financial technologies; information risks and cyber risks; risks of insufficient financial literacy of consumers of banking products and services; risks of customer base reduction. As opportunities for the development of regional banks the use of remote banking services, allowing to attract new customers, expansion of participation in the state programs, emergence of opportunities for the introduction and development of new business models, in particular ESG-banking are identified. The Bank of Russia can provide certain support for the development of regional banks in the context of digital transformation and increasing banking competition by creating and developing nationwide banking infrastructure platforms.

Circular Economy and Circular Business Models in the Actual Global Ecological Context

2020 ◽  
pp. 178-197
Author(s):  
Dana Maria (Oprea) Constantin ◽  
Sorinel Căpușneanu ◽  
Dan Ioan Topor ◽  
Hassan Danial Aslam
Keyword(s):  
Sustainable Development ◽  
Circular Economy ◽  
Business Models ◽  
Future Research ◽  
Successful Implementation ◽  
Ecological Context ◽  
The Sustainable Development ◽  
Theoretical Approaches ◽  
The Difference ◽  
The Impact

This chapter aims to synthesize some of the current issues of the circular economy and circular business models. Based on the international literature, the chapter highlights aspects such as the conceptual theoretical approaches of the circular economy and circular business models, interconnecting the principles of the circular economy, the difference between the linear and the circular economy, the circular economy and the sustainable development, the supply chain within the circular economy, possible business models of the circular economy, advantages and limitations in the successful implementation of the circular economy and supporting sustainability, other aspects of the circular economy and sustainability. The covered topics are based on the studies conducted by specialists and also present some author opinions on the sustainable development and circular economy. The chapter ends with the authors' conclusions on the impact of the circular economy and circular business models in the actual ecological context, launching possible future research topics for specialists.

scholarly journals QUARTERLY OUTLOOK ON MONETARY, BANKING, AND PAYMENT SYSTEM IN INDONESIA: QUARTER I, 2016

2016 ◽  
Vol 18 (4) ◽  
pp. 357-378
Author(s):  
TM Arief Machmud ◽  
Syachman Perdymer ◽  
Muslimin Anwar ◽  
Nurkholisoh Ibnu Aman ◽  
Tri Kurnia Ayu K ◽  
...  
Keyword(s):  
Financial Market ◽  
Government Spending ◽  
Banking System ◽  
Financial System ◽  
Private Investment ◽  
System Stability ◽  
Domestic Economy ◽  
Limited Growth ◽  
The Government ◽  
The Stability

The growth of domestic economy in Indonesia is lower than forecasted in first quarter of 2016.However, the economy is expected to revive and will grow higher in the next quarter, with a well maintained financial system stability. The limited growth of government consumption as well as private investment are the main reason for the slower growth in this quarter, eventhough the government spending on capital goods accelerates. The growth of private consumption remains high with reasonable price movement. With the increase of several commodities’ export, the external performance of export in aggregate also increased. On the other hand, the financial system stability was stable due to viable banking system and better financial market performance. The stability of Rupiah was well maintained, supported by positive expectation on domestic economy and the lower risk of the global financial market.

scholarly journals Theoretical aspects of mechanism of interaction between money and credit

2019 ◽  
Vol 2019 (4) ◽  
pp. 83-93
Author(s):  
Oleg Usherovich Avis
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Commercial Banks ◽  
Banking System ◽  
Financial System ◽  
Bank Lending ◽  
National Bank ◽  
Weak Points ◽  
The Stability

The paper describes the central bank monetary policy that has been heavily criticized, largely due to the banks’ inability to identify emerging risks in a timely manner and to prevent threats to the stability of the entire global financial and banking system. A more rigorous expert-theoretical and public assessment is typical for analyzing the role of commercial banks in these processes, whereby they are recognized as the main culprits of recurrent crises. The excursion into the evolution of theoretical views on the problem under study allows to conclude that it is related to the credit nature of money, in which the activities of commercial banks are of great importance. This idea was shared by many foreign and Russian scientists, who at one time offered their recipes for improving the monetary mechanism, but remained not taken into account in practice. The initial positions of bank lending processes and money making on their basis in volumes and quality, often unregulated, have been analyzed. Much attention is paid to the role of the Central Bank, the bank customers and the state in shaping the credit nature of money. As an alternative to modern methods of monetary regulation, the idea of full-value money has been described. As an example, the phenomenon of the Swiss full-value money initiative in 2018 has been given. It is noted that the initiative demanded to ban issuing electronic (non-cash) money from the commercial banks in order to stabilize the financial system. The weak points of the reform include a threat to the stability of the money value, the low degree of independence of the National Bank of Switzerland. It has been inferred that the events taking place in the modern financial system may indicate significant transformations of the design and toolkit of the modern monetary policy

scholarly journals РОЗВИТОК КОМЕРЦІЙНИХ БАНКІВ УЗБЕКИСТАНУ В УМОВАХ ЛІБЕРАЛІЗАЦІЇ ВАЛЮТНО-КРЕДИТНИХ ВІДНОСИН

2020 ◽  
pp. 86-91
Author(s):  
Наіля Рамілівна Асадулліна
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Local Population ◽  
Banking System ◽  
Added Value ◽  
Successful Implementation ◽  
Material Base ◽  
Monetary Relations ◽  
The Republic ◽  
Stable Development

The liberalization of monetary relations has identified the problem of maintaining the level of economic standards for the banking sector of the Republic of Uzbekistan, in accordance with the requirements of the Basel Committee on Banking Supervision (Basel-3) and the Central Bank of the Republic of Uzbekistan. The aim of the research is to identify ways of stable development of commercial banks in Uzbekistan in the conditions of liberalization of monetary relations. The object of research is the process of stable development of commercial banks in Uzbekistan, as well as ways to improve the efficiency of the banking system as a whole. Research methods – logical, comparative, analytical, scientific and methodological. The hypothesis of the research is that ways to improve the effectiveness of public administration depend on the qualifications of managerial personnel and feedback from the local population. Statement of basic materials. The article considers the priority tasks of the banking sector of the republic, aimed at maintaining stability and stable development. As a priority measure to increase the stability of commercial banks in Uzbekistan, we propose intensifying efforts to attract foreign direct investment in the banking sector of the republic, including through an initial public offer (IPO) in the domestic market, or by placing depositary receipts of shares of commercial banks of the republic in foreign countries stock exchanges. Originality and practical significance of the research. The choice of a model of government in the economy is inevitably associated with geopolitical priorities and ideas about the country's place in the modern world. This means that governance institutions are also influenced by the assessment of governance effectiveness and political factors, which in turn are divided into domestic political ones – this is the support of the idea of state independence by the population. The findings of the research. All proposed measures in the banking system should ultimately increase the volume of attracted investments and ensure the implementation of large investment projects, which are a good example of the successful implementation of state policy on the rational use of the richest raw material base and industrial capacities, ensuring sustainable economic growth, and organizing production with high added value, enhance export potential.

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