scholarly journals ANALYSIS OF MEASURES OF ANTI-CRISIS REGULATION OF THE KAZAKHSTAN’S BANKING SECTOR

2020 ◽  
Vol 3 (77) ◽  
pp. 134-140
Author(s):  
L. Baibulekova ◽  
◽  
G. Lukhmanova ◽  
N. Zaitenova ◽  
A. Musina ◽  
...  
Keyword(s):  
Capital Flows ◽  
Information Disclosure ◽  
Banking Sector ◽  
Negative Impact ◽  
Banking System ◽  
Market Regulation ◽  
Macroeconomic Shocks ◽  
Prudential Regulation ◽  
Banking Market ◽  
Second Tier

The purpose of this paper is to conduct research on the effectiveness of the banking market regulation and the development of some proposals in the field of forming a stable and efficient banking system capable of rationally managing capital flows. An analysis of the practice of prudential regulation of second-tier banks was conducted. Its weaknesses in terms of information disclosure are identified, which allows a formalized approach to meeting the requirements of the regulator. Underestimated risks that form a misconception of the regulator about the state of the banking sector were identified. It was proposed to conduct a parallel assessment of the credit risk’s level by the regulator, based on our own motivated judgment, and also as an indicator reflecting the negative impact of macroeconomic shocks, to use not only the capital of banks, but also the level of non-performing loans.

scholarly journals The impact of the banking system concentration level and the pandemic on the Georgian banking sector

2021 ◽  
Vol 5 (1) ◽  
pp. 24-32
Author(s):  
Ana Guruli
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Concentration Level ◽  
Negative Impact ◽  
Banking System ◽  
Banking Market ◽  
National Bank ◽  
Small Banks ◽  
The Government ◽  
The Impact

Introduction. The importance of the banking sector is vital for the economic development of any country, since it is the main structural unit of monetary use, which plays the greatest role in the development of the state. As in all markets, we are faced with competition in the banking market, which is characterized by certain specifics, since the main product is money that cannot be replaced by other goods, and the main purpose of competition is to gain an advantage among agents operating in the same market, which is reflected in the final profit. The more the banking market develops and the more diversified the services offered to clients, the more the role of competition in the banking sector increases. The spread of the pandemic not only impeded the development of healthy competition, but also called into question the normal functioning and development of the banking sector. Aim and tasks. The aim of the study is to determine the level of competition in the Georgian banking sector by the method of identifying total assets and net loans, which aims to identify the causes of the market concentration level and find solutions, as well as to determine and assess the shock effects of the pandemic, because The pandemic period has become an even bigger challenge for the Georgian banking sector, where most of the market players occupy a small volume of the market, the National Bank of Georgia is actively trying to keep up with the challenges, and in order to mitigate the negative impact caused by the pandemic Results. The results of the study showed the monopoly functioning of the market, which is an obstacle to the development of a competitive market, resulting in unhealthy functioning of the market and the development of a flexible banking system, which ultimately negatively affects the stability of the country's economic development. As for the post-pandemic situation, it has been dealt with quite positively in Georgia, with the management of loan and deposit portfolios successfully managed through a temporary supervisory plan developed by the government, which has not been followed by outflow of funds from banks and loan portfolio mismanagement. Conclusions. In conclusion, it should be noted that in a highly concentrated market, small banks should be promoted with various legislative benefits, which will lead to competition, it is possible to impose a so-called "Capital tax", which implies high demands on capital, it will allow small banks to develop in a healthy competitive environment. Despite the fact that no bank was disrupted during the virus shock in Georgia, the financial result was so unfavorable, it was damaged, the main reason for which was the provision of possible losses on loans, which amounted to a total of 1.22 billion GEL, the National Bank of Georgia is actively trying to keep up with the challenges.

scholarly journals PANDEMIC CRISIS AND ITS EFFECTS ON BULGARIAN BANKING SYSTEM’S EFFICIENCY

2021 ◽  
Author(s):  
Gergana Mihaylova-Borisova ◽  
Keyword(s):  
Growth Rate ◽  
Interest Rates ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Debt Crisis ◽  
Parametric Method ◽  
Banking System ◽  
Data Envelopment ◽  
The Global Financial Crisis

The economies are once again facing the challenges of another crisis related to the spread of coronavirus in 2020. The banking sector, being one of the main intermediaries in the economies, is also affected by the spread of the new crisis, which is different compared to the previous crises such as the global financial crisis in 2008 and the European debt crisis in 2012-2013. Still, the banking sector in Bulgaria suffers from the pandemic crisis due to decelerated growth rate of loans, provided to households and non-financial enterprises, as well as declining profits related to the narrowing spread between interest rates on loans and deposits. The pandemic crisis, which later turned into an economic one, is having a negative impact on the efficiency of the banking system. To prove the negative impact of the pandemic crisis on the efficiency of banks, the non-parametric method for measuring the efficiency, the so-called Data envelopment analysis (DEA), is used.

THE DEVELOPMENT OF THE BANKING SYSTEM IN POLAND DETERMINED BY THE PROCESSES OF ADJUSTMENT TO THE NORMATIVE AND TECHNOLOGICAL STANDARDS OF THE EUROPEAN UNION AND CONTEMPORARY PROCESSES OF ECONOMIC AND INFORMATIONAL GLOBALIZATION

2018 ◽  
Vol 4 (2) ◽  
pp. 339-367
Author(s):  
Jan Grzegorek ◽  
Dariusz Prokopowicz ◽  
Adrian Chojan ◽  
Mirosław Matosek
Keyword(s):  
Financial Markets ◽  
Capital Flows ◽  
Banking Sector ◽  
Stock Exchange ◽  
International Monetary System ◽  
Banking System ◽  
Economic Transformation ◽  
The European Union ◽  
Market Institutions ◽  
Main Determinants

The current processes of economic and information globalization are mainly related to the successively progressing integration of financial markets, the development of ICT and Internet technologies. The liberalization of capital flows, progressing since the 1970s, was determined by many economic and political factors, including the modification of the international monetary system. The main determinants of economic and information globalization include such processes as liberalization of capital flows, deregulation of international financial markets and progress in the field of ICT. These processes constituted favorable conditions for the reconstruction of the market financial system, including the banking sector in Poland in the 1990s. Since the beginning of the systemic and economic transformation that has been taking place in Poland since 1989, the banking system and capital market institutions have been rebuilt. It referred to the Warsaw Stock Exchange market institutions, taking into account the opening of the economy to foreign capital. Foreign financial corporations taking over domestic banking entities in Poland have introduced their modern transactional and teleinformation technologies and new standards for entering into financial transactions. These processes were the main determinants of economic and information globalization that has been made in Poland since the 1990s.

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 ВПЛИВ ІНОЗЕМНОГО КАПІТАЛУ НА БАНКІВСЬКУ СИСТЕМУ УКРАЇНИ В УМОВАХ ГЛОБАЛІЗАЦІЇ

2019 ◽  
pp. 66-75
Author(s):  
М. С. Татар ◽  
Ю. А. Нужнова ◽  
К. М. Рябус
Keyword(s):  
Banking Sector ◽  
Foreign Capital ◽  
Negative Impact ◽  
System Development ◽  
Banking System ◽  
Negative Influence ◽  
Foreign Banks ◽  
System Stability ◽  
Practical Significance ◽  
Foreign Banking

Formulation of the problem. In the last five years the number of insolvent banking institutions was reduced, however, the percentage of banks with foreign capital in the total number of banks was increased, which may affect the banking system stability and require a research of the positive and negative effects of foreign banks on Ukraine banking system. The aim of the research is analizing trends of the foreign capital presence in Ukraine banking sector and determination its positive and negative impact on Ukraine banking system. The subject of the research is the activity of foreign banks in Ukraine. The methods of the research: logical and meaningful method, method of comparison, methods of induction and deduction, etc. The hypothesis of the research. Existence of significant influence of foreign capital on Ukraine banking system. The statement of basic materials. The main tendencies of development of Ukrainian banks and place in ratings of state-owned banks and banks of foreign banking groups are analyzed. It has been found that according to different ratings, banks of foreign banking groups occupy the first leading five positions in the rating, while banks with state-owned shares occupy mostly middle positions. The positive and negative influence of the presence of foreign banks in the territory of Ukraine on the banking system of Ukraine is analyzed. The originality and practical significance of the research is determination the positive and negative impact of foreign capital banks on Ukraine banking system. Conclusions and perspectives of further research. Positive and negative influence of presence of foreign capital banks on the Ukraine banking system is analyzed, which is the basis for further research, in which it is planned to quantify the power of influence of individual banks with foreign capital on Ukraine banking system development, to determine the effectiveness of attracting foreign banking capital in Ukraine, to form a mechanism for admission of banks with foreign capital to the domestic banking services market.

scholarly journals Impact of Inflation on Banks’ Performance

2021 ◽  
Vol 25 (1) ◽  
pp. 123-129
Author(s):  
Elena Sergeeva ◽  
Keyword(s):  
Monetary Policy ◽  
Inflation Rate ◽  
Banking Sector ◽  
Negative Impact ◽  
Banking System ◽  
Positive Trend ◽  
Interest Income ◽  
Modern Development ◽  
Net Profit ◽  
The Impact

Abstract. Introduction. Researchers and banking practitioners pay considerable attention to the analysis of the impact of inflation on the banking sector. The statement of the scientists as to the nature of inflation, corresponding to the modern development of the economic processes, is an approach to the origin of inflation based on the imbalance in money supply and demand. Purpose. During 2014-2017, the political and economic crises in Ukraine led to imbalances in the main macroeconomic proportions, which negatively affected the development of the banking system and, as a result, caused rising of the inflation rate, cash outflow, increasing dollarization and declining purchasing power. Inflation processes had a negative impact on the banks’ performance, namely, the rise in inflation reduced lending and interest income and increased interest expenses, what, therefore, reduced banks’ net interest income. Results. While assessing the impact of inflation on the banks’ performance, it was determined that 2019 was a year of the banks’ performance record. According to the statistics, when the inflation rate fell to record low of 4.05%, BSU’s profit in 2019 reached a historic high: solvent banks received UAH 58.36 billion of net profit, which is 2.7 times higher than the previous year historical record. Thus, the implementation of the NBU’s stimulating monetary policy contributes to the achievement of the projected social and economic goals of the society and is an essential factor in ensuring the stability of the banking system, creating the appropriate basis: price stability and low inflation in the long run. Conclusions. According to the results of the analysis, it is possible to state that in 2020 and in the coming years, due to the qualitative monetary policy of the NBU and a decrease in inflation, there is a reason to expect an increase in net profit of the banking system in Ukraine. This positive trend will renew the banking sector in Ukraine, which will lead to its profitability and efficiency. Keywords: inflation, inflation component, inflation targeting, monetary policy, banks’ performance, lending.

scholarly journals Concentration and Competition in the Albanian Banking Sector

2015 ◽  
Vol 2 (1) ◽  
pp. 168 ◽  
Author(s):  
Eleana Lici ◽  
Irena Boboli
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Market Competition ◽  
Banking System ◽  
External Financing ◽  
Low Level ◽  
Banking Market ◽  
The Government ◽  
High Level

Albania has a relatively new financial system, where banking system is the most developed financial service in our country, with a share of 94, 4% of the total financial services. This is a phenomenon of countries with emerging economies, which proves that there is greater reliance on the state economic development of the banking sector, by effecting from the households to the biggest investors and the government. As in any market, competition is important for the banking sector because, it affects the efficiency and the quality of services offered. Furthermore, competition in banking has also implications for other sectors of the economy. So, higher competition in the banking sector is found to be associated with a faster growth of other sectors of the economy that rely on external financing. The main goal of this paper is to understand the characteristics of competition in our banking system and study the relationship between the level of concentration and competition. We are going to measure the concentration by the “H” indices. The “H” (Herfindaflit) indices is a measure of the level of the concentration of the banking system of a country. A high level of the indices shows a high level of concentration and as a consequence a low level of competition. A low level of the indices shows a low level of concentration which is sign of a banking market with a high competition.

scholarly journals STABILITY OF THE RUSSIAN BANKING SECTOR: TRENDS AND RISKS

2021 ◽  
pp. 10-19
Author(s):  
E.V. Travkina ◽  
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
System Analysis ◽  
Negative Impact ◽  
Banking System ◽  
Qualitative Assessment ◽  
The Stability ◽  
Procedural Components ◽  
Statistical Survey ◽  
The Impact

In the modern conditions of functioning of the banking system, the issues that arise with the assess¬ment of the stability of a commercial bank individually and the banking sector as a whole in connection with the aggravation of the negative impact of many risk-forming factors associated with the manifestation of the pandemic are updated. In this regard, a comprehensive systematization of the existing Russian and international practice of implementing a qualitative assessment of the stability of banking organizations becomes important. The purpose of the study is to identify trends in the development of the Russian banking sector and the manifestations of banking risks that have a negative impact on its stability, as well as to identify practical opportunities to reduce the impact of these risks. The following general scientific and special methods were chosen as scientific tools for conducting this study: the method of system analysis, the method of retrospective analysis, as well as the methods of statistical survey. The information base of the study was the statistical data of the Bank of Russia. The theoretical and meth¬odological basis of the study was the works of such researchers as Fetisov G. G., Lavrushin O. I., Tarkhanov E. A., Muraviev A. K. Ovchinnikov O. P., Betz A. Yu., Peresetsky A. A. Kromonov V. S., etc. The study is based on the basic definitions of the stability of banking organizations and the regulatory framework for assessing the stability of the Russian commercial bank, as well as methods, mechanisms and procedural components for assessing the stability of the Russian banking sector. The results of the study are aimed at identifying trends and risks that affect the stability of both the Russian banking system as a whole and individual commercial banks. As practical recom¬mendations, the directions for further sustainable development of the Russian banking sector in the context of the negative impact of the pandemic on the national economy are presented.

scholarly journals IMPROVING CONSUMER LENDING MODEL CLIENTS

2016 ◽  
Vol 2 (1) ◽  
pp. 245-249
Author(s):  
Лычева ◽  
Irina Lycheva ◽  
Молчанова ◽  
Vera Molchanova
Keyword(s):  
User Interfaces ◽  
Banking Sector ◽  
Banking System ◽  
Customer Base ◽  
Consumer Lending ◽  
Banking Market ◽  
The Russian Federation ◽  
Relationship Of ◽  
The Relationship

The dynamism of the ongoing reforms in the domestic banking sector, one way or another, concerns the relationship of banks with their clients. The customer base responds differently to the reform of the banking system: there is a category of clients who do not take the action of the Central Bank of the Russian Federation, they argue that the monopoly of state-owned banks will lead to a deterioration of service, reduction in quality of banking products and riskiness of banking operations. But there is another category of customers who are positive about the changes and consider increasing the state presence in the banking market of the natural course of development. They link these changes with the possibility of increasing the funding the most important sectors of the real sector of the economy: construction, metallurgy, mechanical engineering. The problem of the banking sector today and in previous periods is similar in many respects: banks still continue to search for the elusive Holy Grail - lasting relationships with customers. Despite the high technology, graphical user interfaces and marketing strategy for the implementation of the task is still unclear in many respects.

scholarly journals Essence of Competitiveness in the Banking Sector: The Status and Problems

2020 ◽  
Vol 11 (514) ◽  
pp. 324-330
Author(s):  
I. M. Viadrova ◽  
◽  
M. V. Morozov ◽  
Keyword(s):  
Banking Sector ◽  
Significant Proportion ◽  
Banking System ◽  
Competitive Environment ◽  
Banking Competition ◽  
Banking Market ◽  
The Status ◽  
Net Assets ◽  
Foreign Credit ◽  
Competitive Products

The article is aimed at closer defining the content of the concept of «bank competitiveness», as well as analyzing the status and problems of ensuring a competitive environment in the banking system of Ukraine. The essence of banking competition was researched and a critical analysis of approaches to understanding the concept of «bank competitiveness» was carried out. Under the concept of «bank competitiveness», it is proposed to understand the integral characterization, which will reflect the real and potential opportunities of the bank to create and promote competitive products and services that meet all customer requirements, occupy and maintain stable positions in the banking market. The analysis of the competitive environment in the banking sector of Ukraine was carried out. The distribution of net assets of banks by groups: State-owned, foreign, private and separately PrivatBank is also analyzed. The assessment of the level of concentration in the banking sector was carried out by calculating the Herfindahl-Hirschmann Index by the level of total and net assets, as well as by the market of deposits of individuals. According to the identified dynamics, an unambiguous conclusion was made that the banking sector of Ukraine is low-concentrated. In general, the analysis of the competitive environment showed positive tendencies and an increase in the competitiveness of banks. The problems that continue to adversely affect the level of competitiveness of banks are allocated as follows: significant proportion of the State-owned banks; problems in lending to big business, as well as the generally low level of capitalization of Ukrainian banks compared to foreign credit institutions; the insufficient number of products and services offered by banks compared to foreign banking markets.

Sign in / Sign up

Export Citation Format

Share Document