ENTERPRISE’S FINANCIAL SECURITY IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

2021 ◽  
pp. 202-222
Author(s):  
Tetiana Korniienko ◽  
◽  
Nataliia Gvozdej
Keyword(s):  
Financial Institutions ◽  
Open Economy ◽  
Financial Crises ◽  
Small Open Economy ◽  
Banking System ◽  
Financial Resources ◽  
Financial Security ◽  
Real Sector ◽  
Internal Instability ◽  
Financial Interests

The financial system of Ukraine as a country with a small open economy is especially affected by global turbulence. A significant imbalance of global financial resources, their significant gap from the real sector of the economy leads to the formation of permanent financial crises, which gives rise to internal instability of the financial sector of the economy, lack of confidence in the banking system and a decrease in demand for final products, which entails a decrease in the level of financial security of enterprises. In such conditions, ensuring the financial security of enterprises becomes important not only for the formation of financial security of the state, but also for protecting the financial interests of their owners, and other stakeholders – managers, employees, counterparties, banks and other financial institutions.

After the Panic: Are Financial Crises Demand or Supply Shocks? Evidence from International Trade

2020 ◽  
Vol 2 (4) ◽  
pp. 509-526 ◽  
Author(s):  
Felipe Benguria ◽  
Alan M. Taylor
Keyword(s):  
Open Economy ◽  
Financial Crises ◽  
Aggregate Demand ◽  
Small Open Economy ◽  
Supply Side ◽  
Supply Shocks ◽  
Crisis Events ◽  
Empirical Tests ◽  
Negative Shock ◽  
Research And Policy

Are financial crises a negative shock to aggregate demand or supply? This is a fundamental question for research and policy making. Arguments for stimulus usually presume demand-side shortfalls; arguments for tax cuts or structural reform look to the supply side. Resolving the question requires models with both mechanisms, and empirical tests to tell them apart. We develop a small open economy model, where a country is subject to deleveraging shocks that impose binding credit constraints on households and/or firms. These financial crisis events leave distinct statistical signatures in the time series record that divide sharply between each type of shock. Empirical analysis reveals a clear picture: after financial crises the dominant pattern is that imports contract, exports hold steady or even rise, and the real exchange rate depreciates. History shows financial crises are predominantly a negative shock to demand. (JEL F14, F31, F41, G01, N10, N20, N70)

scholarly journals DEFINITIONS OF FINANCIAL AND ECONOMIC SECURITY OF THE BANK

2018 ◽  
pp. 155-166
Author(s):  
Svitlana Rodchenko
Keyword(s):  
National Security ◽  
Banking System ◽  
International Market ◽  
Economic Security ◽  
Point Of View ◽  
Financial Resources ◽  
Financial Security ◽  
Unified Approach ◽  
Monetary System ◽  
Analysis And Synthesis

Introduction. The banking system and banks, in particular, play an important role in strengthening of national security, ensuring its sovereignty, strengthening the position of the country and its competitiveness in the international market, regulating the monetary system and the movement of financial resources in the market, etc. In their activity they experience significant influence of various types of threats, therefore, strengthening their financial and economic security does not lose its relevance, and the development of a unified approach to understanding the essence of "financial and economic security of the bank" is necessary for the development of a system for its effective support and regulation. Purpose. The article aims to explore the essence of the concept of "financial and economic security of the bank" through a detailed study and synthesis of scientists’ and practitioners’ definitions of such concepts as "security", "danger", "uncertainty", "challenge", "risk", "threat", " bank security", "economic security of the bank" and "financial security of the bank ". Method. Methods of economic analysis and synthesis are used for a detailed investigation of such concepts under study as "comparison", "generalization" and "systematization", for conduction of conclusions of research and development of author’s point of view on the essence of "financial and economic security of the bank". Results. On the basis of a detailed study of the concepts "bank security", "economic security of the bank", "financial security of the bank" and "financial and economic security of the bank" the author has provided her own definition.

scholarly journals Trends in the development of the banking system in the Far North of the Russian Federation

2020 ◽  
Vol 210 ◽  
pp. 13041
Author(s):  
Lyudmila Pushkareva ◽  
Mikhail Pushkarev
Keyword(s):  
Russian Federation ◽  
National Economy ◽  
Commercial Banks ◽  
Banking System ◽  
Financial Resources ◽  
Real Sector ◽  
Political Situation ◽  
Far North ◽  
The Russian Federation

In this paper, the author summarizes the main problems that have to be solved by regional commercial banks and, in particular, banks in the Far North and equivalent territories in the current political situation and conditions of economic sanctions. The country's banking system is not adequate to the needs of the national economy and is unable to provide resources for the country's modernization. The ability of banks to finance the needs of the real sector is significantly constrained by the lack of long-term and cheap financial resources from the banks themselves.

scholarly journals Determinants of financial euroisation in a small open economy: The case of Serbia

2018 ◽  
Vol 63 (218) ◽  
pp. 9-21
Author(s):  
Mile Bosnjak ◽  
Gordana Kordic ◽  
Vlatka Bilas
Keyword(s):  
Time Series ◽  
Open Economy ◽  
Small Open Economy ◽  
Banking System ◽  
Behaviour Pattern ◽  
Monthly Data ◽  
System A ◽  
The Mean ◽  
The Interest Rate ◽  
Clustering Pattern

This paper examines the phenomenon of financial euroisation in Serbia, focusing on the liability side of the banking system. A time series model is estimated and evaluated using a monthly data sample from January 2007 to January 2016 for Serbia. The results of this paper show that the mean pattern of financial euroisation in Serbia is determined by the exchange rate, inflation, and the interest rate differential. Financial euroisation in Serbia is found to be volatile and to exhibit a clustering pattern. Of the estimated and tested models the ARCH (1) model is found to be best suited to explain the volatile behaviour pattern of financial euroisation in Serbia.

scholarly journals Financial security of a small open economy in conditions of globalization as a requirement for economic growth

2019 ◽  
pp. 9-24
Author(s):  
Piotr Komorowski
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Financial Stability ◽  
Small Open Economy ◽  
Economic Security ◽  
The State ◽  
Financial Security ◽  
Special Significance

In the conditions of the globalization of economies the issue of financial stability, which is a condition for the economic security of the state, has acquired a special significance. The aim of the article is to determine the importance of the role of financial stability for maintaining economic security and economic growth and to validate the role of the Safety Network Institution in maintaining stability.

scholarly journals Estimated DSGE Model for Monetary and Fiscal Polic Coordination Analysis – The Case of Serbia

2018 ◽  
Vol 7 (1) ◽  
pp. 145-173
Author(s):  
Tamara Bašić Vasiljev
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Inflation Targeting ◽  
Small Open Economy ◽  
Banking System ◽  
Fiscal Rules ◽  
New Keynesian ◽  
Keynesian Model ◽  
Financial Dollarization ◽  
Monetary And Fiscal Policy

AbstractWe present a new-Keynesian model for small open economy, with price rigidities stemming from a Calvo pricing scheme (1983), monopolistic banking system, financial dollarization of the economy and monetary and fiscal policy governed by rules. We estimate the model on Serbian data and propose various model extensions that could be used for monetary and fiscal policy analysis. We consider 6 combinations of monetary and fiscal policy regimes, inflation targeting and currency peg on one hand, and discretionary cyclically neutral fiscal policy and fiscal rules, on the other. The model with inflation targeting and discretionary fiscal policy fits the data best.

scholarly journals Overborrowing and Systemic Externalities in the Business Cycle

2011 ◽  
Vol 101 (7) ◽  
pp. 3400-3426 ◽  
Author(s):  
Javier Bianchi
Keyword(s):  
Quantitative Analysis ◽  
Open Economy ◽  
Financial Crises ◽  
Credit Constraints ◽  
Small Open Economy ◽  
Dynamic Stochastic General Equilibrium ◽  
Constrained Efficiency ◽  
Dynamic Stochastic ◽  
The Business Cycle ◽  
The Cost

Credit constraints linking debt to market-determined prices embody a systemic credit externality that drives a wedge between competitive and constrained socially optimal equilibria, inducing private agents to overborrow. This externality arises because private agents fail to internalize the financial amplification effects of carrying a large amount of debt when credit constraints bind. We conduct a quantitative analysis of this externality in a two-sector dynamic stochastic general equilibrium (DSGE) model of a small open economy calibrated to emerging markets. Raising the cost of borrowing during tranquil times restores constrained efficiency and significantly reduces the incidence and severity of financial crises. JEL: E13, E32, E44, F41, G01

scholarly journals CAPITAL STRUCTURE AND LIQUIDITY AS MEASURES OF EFFICIENCY: THE CASE OF ISLAMIC BANKS

2020 ◽  
pp. 23-29
Author(s):  
Francisca M. Beer PhD ◽  
Adeeb S. Hattar DBA
Keyword(s):  
Capital Structure ◽  
Financial Institutions ◽  
Financial Crises ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Adequate Amount ◽  
Negative Impacts ◽  
The Impact ◽  
The Capital Structure

The main objective of this paper is to improve our understanding of the capital structure and liquidity position of Islamic banks. For these institutions, an adequate amount of liquid assets and an adequate amount of capital are essential to stay solvent and avoid bankruptcy. Financial institutions’ amounts of capital and liquid assets have also been identified as valuable shields during financial crises. Unlike some of their Western counterparts, most Islamic banks have been able to circumvent the negative impacts of the 2008 crisis. Our paper reviews the recent and relevant publications about the impact of the capital structure and the liquidity on financial institutions efficiency. It focuses on the Islamic banking system which has grown significantly.

FINANCIAL COMPONENT OF REGIONSʼ ECONOMIC SECURITY

2017 ◽  
Author(s):  
Yuliya Tymchyshyn ◽  
Keyword(s):  
Security Policy ◽  
Negative Impact ◽  
Economic Security ◽  
The State ◽  
Financial Resources ◽  
Financial Security ◽  
Financial Problems ◽  
Financial Flows ◽  
Financial Measures ◽  
Financial Interests

The article highlights the basic concepts of regions’ financial security. Was discussed the regional level, the components of region’s financial security and their characteristics: budget, tax, investment, innovation, monetary, financial security of economic entities, financial security of the population and insurance. Internal and external aspects of financial security are described. The states of financial security by the intensity of the negative factors’ influence are distinguished. The main generalizing factors that have a negative impact on the level of financial security of the Ukrainian regions are revealed: external factors, these include world-class and national factors; internal factors, these include economic, social, environmental, scientific and technological, informational, material, legal factors. External indicators are substantiated, which indicate the degree of indirect impact on the financial security of a particular region and are determined by the level of financial security of the state by indicators that characterize the state of debt, budget, monetary and currency, investment and foreign trade security. The use of these indicators in calculating the level of financial security of the region is due to a significant impact on this level of financial security of the state, because if national needs are not provided with sufficient financial resources, the financial security of any region cannot be discussed. Internal indicators characterize the immediate state of financial security of the needs of the economic, social and environmental spheres of the region compared to the threshold values. The main risks to the financial security of the region in terms of its structural elements have been assessed. The tasks of the financial security policy of the region are analyzed, such as: diagnostics and forecasting of external and internal threats to ensuring the realization of the financial interests of the region; identification of the most acute financial problems of the region, ranking them according to the degree of danger; development of a system of financial measures aimed at solving financial problems, creating financial mechanisms to protect regional interests; prevention and neutralization of real and potential threats to the financial interests of the region; diversification of financial sources and optimization of financial flows to ensure the balance of sustainable development in accordance with established security criteria; improving the efficiency of the use of available financial resources of the region, control of their volumes.

scholarly journals Don't Put All Your Eggs in Foreign Baskets

Económica ◽  
2020 ◽  
Vol 66 ◽  
pp. 016
Author(s):  
Santiago Camara
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Financial Crises ◽  
Small Open Economy ◽  
Balance Sheet ◽  
Firm Level ◽  
Present Evidence ◽  
Exporting Firms ◽  
Balance Sheet Effects ◽  
Level Data

I analyze the sluggish response of exports during and after financial crises using firm level data for two countries-episodes: Argentina 2001 and Peru 1998 crises. I find that both incumbent exporting firms do not expand and that there’s no significant entry of new exporting firms. Furthermore, I present evidence that suggests that the export elasticity to the real exchange rate is asymmetric, smaller for depreciations than for appreciations. I build and estimate a DSGE model for a small open economy where exporting entrepreneurs are subject to financial frictions and balance sheet effects in order to try and explain these stylized facts. Although these frictions decrease the response of exports to movements in the exchange rate, I use computational exercises to show that they are not enough to explain the empirical results.

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