A comprehensive approach to assessing the level of economic security of Ukrainian banks

2020 ◽  
pp. 92-99
Author(s):  
Oksana Kopylyuk ◽  
Nataliya Zhurybida
Keyword(s):  
Banking System ◽  
Economic Security ◽  
Portfolio Risk ◽  
Loan Portfolio ◽  
Micro Level ◽  
Low Levels ◽  
Methodological Approaches ◽  
Lending Activity ◽  
Security Indicators ◽  
High Level

Existing methodological approaches to assessing the level of economic security of Ukrainian banks are revealed and the need to improve them is substantiated. The author proposes the method of determining the level of economic security of banks at the micro level. Estimated values of economic security indicators and their assessment in points made it possible to group institutions by the level of economic security and to determine the positioning of banks depending on ownership. Institutions with a high level of economic security include banks, which, according to 8 indicators, have accumulated a total number of 61 to 80 points. A satisfactory level of economic security is characteristic of banks, whose quantitative assessment for a certain amount of indicators ranges from 41 to 60 points. Low levels of economic security are inherent in institutions with an overall score of 21-40. Institutions with a critical level of security include banks with a total score of up to 20 points, whose activities are accompanied by violations of indicator values and destabilizing effects on the banking system. The validation of this methodology was carried out in all solvent banks of Ukraine, which operated in 2015 and 2019. Based on the grouping of institutions by the level of economic security, the threats and dangers that accompanied the activities of banks were identified. The main threats to the economic security of state-owned banks were: the highest share of problem loans in the aggregate loan portfolio, risk of operating activities, reduction of their lending activity. Institutions of foreign banking groups were largely characterized by high, satisfactory, and low levels of economic security. This methodological toolkit is suggested to be used to strengthen the market position and increase the security of the functioning of Ukrainian banks.

Methodological Approaches to Assessing the Level of Economic Security of Small and Medium-Sized Businesses

2021 ◽  
pp. 61-69
Author(s):  
O. Bykova ◽  
Andrey Garnov ◽  
A. Shpileva ◽  
A. Chuhlebov
Keyword(s):  
Well Being ◽  
Negative Influence ◽  
Economic Security ◽  
Current Level ◽  
Systematic Analysis ◽  
Sustainable Implementation ◽  
Modern Development ◽  
Methodological Approaches ◽  
High Level ◽  
Functional Components

In the constantly changing conditions of the external environment, with the modern development of science and technology, with a high level of competition, the success of an organization's functioning lies in its timely ability to effectively respond to market demands. An enterprise's resistance to external and internal threats is determined by the level of its economic security. In other words, the economic security of an enterprise is the state of its protection from the negative influence of external and internal threats, destabilizing factors, under which the sustainable implementation of the main commercial interests and goals of the statutory activities is achieved. It is extremely important to conduct a systematic analysis of the management of the economic security of enterprises, develop effective methods for assessing the current level of security in companies and improve mechanisms for increasing economic security to improve the competitiveness of Russian business in modern market realities. The concept of economic security includes a whole range of functional components. In addition to financial security, the system of economic security includes personnel, technological, market, legal, interface, environmental, information and power components, which equally affect the well-being of the company. And only when comprehensive measures are taken to improve each functional component, a high, competitive level of economic security can be achieved. It is extremely important to understand the essence of the economic security of an enterprise, to study methodological approaches to assessing the current level of economic security and to learn how to correctly use the mechanisms to improve it.

Risks typology of the banking system economic security and methodological approaches to their assessment

2020 ◽  
pp. 90-97
Author(s):  
Elena V. FLENOVA
Keyword(s):  
Sustainable Development ◽  
Methodological Approach ◽  
Banking System ◽  
Economic Security ◽  
Capital Adequacy ◽  
Threshold Values ◽  
The Sustainable Development ◽  
Advantages And Disadvantages ◽  
Starting Point ◽  
Security Indicators

The aim of the study is to identify the advantages and limitations of the system of standards used in modern Russia as threshold values of indicators of threats to the economic security of the banking system. During the study, we developed the conceptual apparatus of the theory of economic security management, determined the composition of risks of the sustainable development of the banking system and analyzed indicators of threats to its functioning. In accordance with the goal, we presented interpretation of the conceptual structures “economic security of the banking system” and “banking security”. We carried out scientific research using the gnoseological potential of the theory of economic security, the theory of credit and banking, and the theory of risk management. To solve the research problems, we used methods of economic grouping, economic comparison (comparison), abstract-logical method, etc. The use of these methods made it possible to present a typology of risks and threats to the economic security of the banking system, as well as to analyze the methodological approach adopted by the banking segment of the Russian economy to determine threshold values of economic security indicators based on the use of standards. These standards are based on the accounting of indicators of capital adequacy level and indicators of return on capital. We formulated the advantages and disadvantages of this approach taking into account the interests of owners, managers and clients of banks and non-bank credit organizations. It is necessary to develop a methodology for determining the level of risks of the sustainable development of the banking system, taking into account the increase in the level of uncertainty of environmental factors. The obtained conclusions are a starting point for further study of indicators of threats to the economic security of the banking system and justification of their thresholds.

scholarly journals Economic Security of Entrepreneurial Structures in the Minds of Digitalization

2020 ◽  
pp. 263-272
Author(s):  
Yurii Malakhovskyi ◽  
◽  
Oleh Onofriichuk ◽  
Olena Kulishova ◽  
◽  
...  
Keyword(s):  
Positive Impact ◽  
Economic Security ◽  
Real Economy ◽  
The Real ◽  
Use Of Resources ◽  
Efqm Model ◽  
Number Of Factors ◽  
Security Indicators ◽  
High Level ◽  
The Impact

The purpose of this publication is to study the system of economic security parameters and improve the process of using RADAR logic as an element of assessing the information security of the enterprise. The importance of the concept of economic security of enterprises (EBP) is that scientists recognize it as an important factor in national security, since the real economy is an environment of planning, organization and the best use of resources. Four main factors of EBP are considered: a) planning; b) monitoring of the external and internal environment; (b) identifying and implementing threat response measures; d) control and improvement of the system. Taking into account the turbulence of the external environment, the impact on the formation of parameters of the EBP of macro-, meso- and microeconomic level factors is investigated. It is proposed to lay the methodology based on the model of the European Quality Management Fund (EFQM) as the basis for the formation of the EBP culture. Its goal is to achieve a high level of business excellence, the direction is to promote the processes of coordination of business and security goals, coordination of efforts to achieve sustainable security indicators, the formation of market knowledge and best practices for their exchange. The prospects for practical use of the EFQM model, the components of which are: basic concepts of perfection are carefully studied; criteria; RADAR logic. The conclusion about the feasibility of implementing the RADAR system is substantiated. Full and comprehensive implementation of the system can have a positive impact on the level of short-term liquidity of the company's assets, its long-term solvency, the formation of the desired level of profitability for shareholders, and generate positive external effects for society and the environment. The complexity of ensuring the EBP is explained by the variety of manifestations and relationships of interactive elements among the internal components of enterprises and the unpredictability of the manifestation of external factors. A logical conclusion is drawn about the importance of the EBP concept, its ability to include a significant number of factors in the sphere of management influence. The direct consequences of using the EBP concept are the comprehensive provision of both its own economic security and the fundamental principles of its organization, the safety of the activities of individuals, the ability to take into account numerous factors in the formation of the actual level of regional, national and international economic security of the state. The strategic directions of further research are outlined: study, schematization, numerical formalization of system-structural relations of components and threats to economic security of enterprises, the real sector and the national economy as a whole.

Conceptual bases of forming the regions’ economic security strategies

2020 ◽  
pp. 24-31
Author(s):  
Yuliya V. Tymchyshyn
Keyword(s):  
Growth Parameters ◽  
Adaptive Strategies ◽  
Economic Security ◽  
Inclusive Development ◽  
Economic Activities ◽  
Active Growth ◽  
Low Level ◽  
Theoretical Approaches ◽  
Security Indicators ◽  
High Level

The article systematizes the existing theoretical approaches to revealing the essence of the definition "a region’s economic security strategy". The strategy of economic security should be a priority in ensuring the goals of inclusive development of regions, their competitiveness and stability. The order of development of this strategy includes: 1) forming the strategic goals of economic security of the region taking into account the management hierarchy; 2) strategic analysis of the external and internal security environment of the region; 3) identifying the strategy options; 4) determining the strategic alternatives and priorities of economic security of the region; 5) implementing the strategy; 6) monitoring the determinants of the economic security management process; 7) control; 8) adjustment of appropriate measures for economic security in the region. A number of new strategies are proposed: 1) of equalization and elimination of risks, threats, and dangers, 2) of growth and activation of growth poles; 3) of active growth; 4) of advanced safety-oriented development; 5) innovation-investment and adaptive strategies. Strategies for equalization and elimination of risks, threats, and dangers for areas with signs of depression and a critically low level of security are aimed at overcoming imbalances in the socio-economic system of the region and restoring positive economic growth parameters. Strategies for growth and activation of growth poles are focused on identifying profitable economic activities in the region, increasing innovation and investment, and overcoming the existing low level of economic security. Strategies of active growth provide for positive dynamics of development of the economic subsystem in the region and indicators of its security and increase of internal potential for an economic breakthrough. Strategies of advanced security-oriented development are typical for leading regions with a high level of development of the economic subsystem in the region and its security with a focus on the long-term increase of regional economic activity and security indicators. Innovation-investment and adaptive strategies are typical for the region with the highest level of economic security based on the adequacy of financial security and concentration of innovation and investment potential in the region.

scholarly journals Updating Approaches to the Assessment of the Economic Security Level of an Enterprise

2020 ◽  
pp. 234-243
Author(s):  
Viktoriya Kudrevich ◽  
Oksana Trilitskaya ◽  
Yuliya Pechak
Keyword(s):  
Economic Security ◽  
Security Level ◽  
Financial Conditions ◽  
Modern Enterprise ◽  
Separate Area ◽  
Methodological Approaches ◽  
The Republic ◽  
Crisis Conditions ◽  
High Level ◽  
The Relationship

The crisis conditions of economic development, the growth of the number of unprofitable enterprises, high level of bankruptcy and other unfavorable economic factors encourage the search for ways to improve the efficiency of economic entities and ensure their stable functioning. One of these areas is the provision of the economic security of an enterprise. The ways to ensure the economic security of enterprises have many features, so recently this problem has become a separate area of research. The purpose of the article is to determine and summarize the criteria and methods for the assessment of financial and economic security of domestic enterprises, establish the relationship between them on the basis of the analysis of existing scientific approaches. The paper presents the systematization and generalization of scientific works of many scientists, analyzes the existing conceptual apparatus of determining financial and economic security of an enterprise, and generalizes scientific approaches to the assessment of the level of financial and economic security at the macro level. The article analyzes the methods and approaches used to determine the level of economic security of a modern enterprise. The article defines the dependence between indicators of financial and economic activity of enterprises and a condition of their economic safety. The authors make the generalization of existing methods of assessing the economic security of an enterprise, analyze their features, and choose the methods which are expedient to the use in the diagnostics of economic security of a modern enterprise. The researchers analyze economic security of one of the largest enterprises of the Republic of Crimea – PJSC “Crimean Soda Plant” according to a set of indicators for the assessment of financial conditions and define the indicators and boundaries above (below) which the enterprise under analysis faces financial crisis. The prospect of further research in this direction is the choice of criteria (indicators) for the assessment of economic security of an enterprise, system of indicators charactering it, and methodological approaches determining the level of financial and economic security.

scholarly journals Recovery and Reduction of Non-Performing Loans – Podgorica Approach

2014 ◽  
Vol 3 (3) ◽  
pp. 101-118 ◽  
Author(s):  
Ristan Stijepović
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Negative Impact ◽  
Aggregate Demand ◽  
Successful Implementation ◽  
Negative Effects ◽  
Loan Portfolio ◽  
Current Financial Crisis ◽  
Lending Activity ◽  
High Level

Abstract Loan portfolio of Montenegro’s banking sector was largely affected by the growth in past due loans during the current financial crisis. High level of these loans limits banks’ lending activity which results in a decline in credit supply. Negative effects of the non-performing loans’ growth reflected adversely on economic strength of the real and households sectors. Majority of Montenegrin companies have significant liquidity problems and their defaults affect adversely the sound part of the economy, while reduced households spending reflects negatively on aggregate demand. Therefore, a new approach for the recovery of these loans should be sought and reduce their negative impact on loan portfolio of the banking sector. The World Bank Financial Sector Advisory Centre (FinSac) located in Vienna proposed a series of measures and recommendations for the resolution of these loans through several modules. In addition to the strengthening of loan portfolio and initiating more dynamic lending activity of the banking sector, the project called Podgorica Approach aims at strengthening financial stability of the system, supporting debtors’ recovery, and improving economic growth. Podgorica Approach contributed, in particular, to quantitative assessment of the recovery of non-performing loans which could return to the performing status through the restructuring process. Better qualitative understanding of these loans is necessary to act preventively and thus largely reduce migration from performing to non-performing loans. In addition, this approach aims at strengthening the incentives proposed by the authorities so that the level of non-performing loans is reduced through their successful implementation.

scholarly journals Optimization of Information Analytical Support for Assessing the Reliability of Counterparties from the Standpoint of Economic Security

TEM Journal ◽  
2021 ◽  
pp. 292-297
Author(s):  
Larysa Hnylytska ◽  
Ievgeniia Gavrylychenko ◽  
Stepan Melnyk ◽  
Olena Illiashenko ◽  
Yevhenii Rudnichenko ◽  
...  
Keyword(s):  
Economic Security ◽  
Optimal Configuration ◽  
Low Level ◽  
Methodological Approaches ◽  
High Level ◽  
High Degree ◽  
Integral Indicator

To solve the problem of finding effective methodological approaches that would make it possible to determine the level of security of relations with market entities with a high degree of reliability, it is proposed to use a comprehensive methodology for assessing the economic reliability of counterparties. As a result of the application of the methodology, an optimal configuration of information analytical support for assessing the economic reliability of counterparties is formed, based on a combination of financial diagnostics techniques with special methods for checking the reliability of data and involves modeling the levels of economic reliability of counterparties, depending on the achieved value of the integral indicator of economic reliability for: counterparties with high level of reliability, sufficient level, low level of reliability and unreliable counterparties.

scholarly journals DIAGNOSTICS AND ANALYSIS OF ECONOMIC SECURITY IN THE REGIONAL MANAGEMENT SYSTEM (USING THE EXAMPLE OF THE NOVOSIBIRSK REGION)

2020 ◽  
pp. 5-10
Author(s):  
M. A. Irkin ◽  
◽  
T. N. Cherepkova ◽  
Keyword(s):  
Economic Security ◽  
Security Level ◽  
Employment Level ◽  
Investment Activity ◽  
Novosibirsk Region ◽  
Fixed Assets ◽  
High Employment ◽  
Security Indicators ◽  
High Level

The increasing role of the economic security of particular regions is characteristic of the present time since the totality of their indicators largely determines the level of national security. Therefore, in management, one should pay significant attention to the issues of increasing economic security in the region. The paper presents the study of economic security indicators in the Novosibirsk region. The authors analyzed some specific indicators and indices necessary for the formation of a comprehensive opinion on the economic security level of the territory, such as real incomes of the population, the employment level, depreciation of fixed assets in the region, the share of foreign investments in the total volume of investments in fixed assets, the growth rate of real incomes, and others. The analysis of economic security indicators allowed identifying some factors that should be given special attention. When managing the economic security of the Novosibirsk region, it is necessary to focus on reducing the population with substandard incomes, increasing the investment activity of citizens, and the attractiveness of the territory for foreign investors. The authors analyzed the level of economic security of the Novosibirsk region. The study revealed both the positive factors in this aspect and some indicators, the value of which causes significant anxiety. Among the positive factors, it is necessary to note the high employment of the population and low unemployment, as well as the indicators showing the R&D investments, which can have a positive effect on the scientific and innovative development of the region. Among the negative indicators, one can note a high level of poverty and low investment activity in the territory.

DIAGNOSTICS OF THE STATE OF FINANCIAL SECURITY OF UKRAINE

2018 ◽  
pp. 12-18 ◽  
Author(s):  
Iryna Petrivna Mihus ◽  
Liudmila Mykolayivna Akimova ◽  
Elena Anatolievna Harnyk
Keyword(s):  
Economic Security ◽  
The State ◽  
Financial Security ◽  
Economic Relations ◽  
External Threats ◽  
Complex Process ◽  
The Stability ◽  
Security Indicators ◽  
High Level ◽  
High Degree

Urgency of the research. The transition to the market in Ukraine led to changes in the sphere of economic relations, which are characterized by a high level of instability. Signifi-cant changes that have occurred in recent years have also created new threats to the domestic economy, necessitating the diagnosis of Ukraine's financial security. Target setting. The welfare of each state primarily de-pends on the stability of its financial system, which is provid-ed through the timely diagnosis of its threats and response to them. Actual scientific researches and issues analysis. The issues of financial security of the nation, as an economic component, the principles of the formation of a system for ensuring financial security were revealed in the works of domestic and foreign scientists, namely in the works of A. Baranovsky, V. Geyets, M. Yermoshenko, J. Zhalilo, B. Karpinsky. A. Sukhorukov, A. Shevchenko and others. Uninvestigated parts of general matters defining. In the conditions of cyclical economic fluctuations, which are characterized by a high degree of uncertainty, it is of acute necessity to diagnose the financial security as a component of the state's economic security. The research objective. The purpose of the article is to conduct a diagnosis of Ukraine's financial security and identi-fy the threats that affect it. The statement of basic materials. The article analyzes both the dynamics of integral indicators of the components of financial security by the methodology of the Ministry of Economy of Ukraine for 2013 – 2017 and the dynamics of financial security indicators by the methodology of the Na-tional Institute of International Security Problems of Ukraine from 2013 to 2017, as well as distinguishes their shortcom-ings. There is proposed a system of measures to increase the level of financial security of the enterprises in Ukraine. Conclusions. Diagnostics of the level of financial security is a complex process of identifying, analyzing, eliminating and forecasting the emergence of internal and external threats to the state. Diagnosis of the components of financial security is the basis for developing a set of measures to counter threats and improve the level of protection of Ukraine.

scholarly journals How inefficient is an inefficient credit process? An analysis of the Italian banking system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Cincinelli ◽  
Domenico Piatti
Keyword(s):  
Credit Risk ◽  
Stochastic Frontier ◽  
Banking System ◽  
Efficient Frontier ◽  
Likelihood Method ◽  
Loan Portfolio ◽  
Content Type ◽  
Credit Lines ◽  
Lending Activity ◽  
The Interest Rate

PurposeThe paper aims to disentangle the physiological credit risk from the credit risk coming from the inefficient screening and monitoring management process. The analysis is conducted on a sample of 338 Italian banks–56 joint-stock banks (SpA), 23 cooperative banks (Popolari) and 259 mutual banks (BCCs)–over the time period 2006–2017.Design/methodology/approachThe authors use the maximum likelihood method to estimate the efficient frontier, as a set of best management credit practices, which minimises the credit risk defined on the basis of the level of loans granted, the technical structure of the loan portfolio (such as credit lines, mortgages, consumer loans and other technical loan categories) and the interest rate charges.FindingsThe empirical results show that the increase in non-performing loans (NPLs) is related both to the severe and protracted recession in Italy, which significantly reduced borrowers' capacity to service their debt, and to other factors, such as banks' lending monitoring policies with limited capacity to work-out defaulted loans.Originality/valueThe authors propose a new approach to the study of the performance of the credit process. With the stochastic frontier, the physiological credit risk, assumed by the bank according to its lending activity and management choices, is separated from the credit risk resulting from an inefficient management of the screening and monitoring process. In addition, the authors analyse the determinants of the excess of NPLs. This aspect is considered particularly original because the scientific contributions which consider the causes of NPLs have largely focused on the level of NPLs not considering the physiological part, linked to the structure of the bank's loan portfolio and its operational strategy and therefore not compressible and in any case not attributable to mismanagement or moral hazard.

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