scholarly journals The Bahamas

2019 ◽  
Vol 19 (199) ◽  
pp. 1
Author(s):  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Supervision ◽  
Property Market ◽  
The Bahamas ◽  
Poor Growth ◽  
Nonperforming Loans ◽  
Consumer Loans ◽  
Risk Monitoring

The Bahamas appears to be resilient to current threats to its financial stability, but action is needed to safeguard against potential weaknesses. There is a large stock of problem assets that needs to be dealt with from a variety of perspectives: systemic risk monitoring, banking supervision, and crisis management. Vulnerabilities to natural disasters and external economic contagion heighten this need. The banking sector dominates the financial system and has focused on residential mortgages and consumer loans during a long period of economic stagnation. Despite poor growth the sector has remained profitable. However, the small domestic residential property market backing most secured lending is prone to shocks and illiquidity. This has historically led to high and persistent levels of nonperforming loans (NPLs), which significantly increase uncertainty and fragility in the banking system.

scholarly journals RETHINKING THE ROLE OF STATE IN ADDRESSING FINANCIAL DIFFICULTIES OF THE BANKING SECTORS IN EASTERN EUROPE

2020 ◽  
Vol 9 (20) ◽  
Author(s):  
Svetlana Popović ◽  
Velimir Lukić
Keyword(s):  
Eastern Europe ◽  
Financial Stability ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
The State ◽  
Positive Role ◽  
Nonperforming Loans ◽  
Role Of The State

Financial problems in the banking sector have historically entailed significant government intervention and the allocation of significant funds for its rehabilitation. The recent financial crisis, manifested in Europe primarily as a banking crisis, reaffirmed the unwritten call of the state to intervene extensively to preserve economic and financial stability, but only for a set of old and developed EU Member States. The paper therefore analyzes the reformed role of the state in solving acute problems in transformed banking systems in Eastern Europe in the light of the post-crisis escalation of the volume of nonperforming loans. The focus of the role of the state was shifted from direct fiscal expenditures to raising the quality of the institutional environment and the rule of law, which enabled an impressive reduction in the rates of nonperforming loans. Foreign ownership in the banking sector has played a positive role because the financial backing of foreign subsidiaries has reduced potential fiscal costs on the one hand and on the other hand it contributed to maintaining confidence in the banking system.

scholarly journals Guinea

2020 ◽  
Vol 2020 (42) ◽  
Author(s):  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking Supervision ◽  
Nonperforming Loans ◽  
Current Economic Situation ◽  
Financial Soundness ◽  
Payments Systems ◽  
Open Position ◽  
Economic Outlook ◽  
Adequate Analysis

In response to a request from the BCRG, the IMF conducted an FSSR mission from June 12–24, 2019. A scoping mission had been undertaken in January 2019, and on the basis of that mission it was agreed with the authorities that the FSSR would cover the following topics: (i) financial stability oversight; (ii) systemic liquidity; (iii) payments systems; (iv) banking supervision; and (v) crisis management, bank resolution, and safety nets. While the current economic situation is benign, the financial soundness indicators (FSIs) point to increasing vulnerabilities (see Annex I). The economic outlook is currently positive. Moreover, financial inclusion is growing rapidly as mobile money services are quickly adopted. However, the FSIs suggest growing vulnerabilities and possibly some idiosyncratic stress in the banking sector. For example, nonperforming loans (NPLs), large exposures, and the net-open position are on a negative trend. Given data quality and availability issues, it is however difficult to draw firm conclusions. For example, while the net-open position according to the reported FSIs is larger than 100 percent, prudential reporting points to a ratio of on average below 20 percent. This discrepancy needs further analysis and explanation. In addition, the BCRG does not prepare an adequate analysis and explanation of the drivers of the observed trends.

scholarly journals IMPACT OF MACROECONOMIC FACTORS IN NONPERFORMING LOANS IN KOSOVO

2019 ◽  
Vol 34 (1) ◽  
pp. 125-131
Author(s):  
Donjeta Morina
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Influential Factors ◽  
Gdp Growth ◽  
Macroeconomic Factors ◽  
Nonperforming Loans ◽  
Macroeconomic Indicators ◽  
The Impact

An efficient and developed banking system is essential for the growth of any economy and the purpose of any banking system is to operate profitably in order to maintain sustainability and financial stability. Banks carry out many activities to make a profit, and the main activity of each bank is lending, thus enabling consumption and investment in the economy. Despite the importance of this activity in terms of income for banks, the lending process is not as easy as one might imagine. During this activity, banks faced delays from borrowers, which resulted in non-performing loans, as an obstacle to the efficiency of banking activities. The level of these loans varies from country to country and is nowadays considered as an integral part of the commercial banking of each country. There are many factors that directly or indirectly affect the level of these loans and the key influential factors are considered the macroeconomic factors. They are considered to be the main cause of the increase in non-performing loans as they generally affect all sectors of the economy. As a result of the negative reversal of these factors, borrowers will encounter liquidity shortages, which in turn will increase the likelihood of delays in fulfilling liabilities to the bank, in this case directly affecting the level of nonperforming loans. The key macroeconomic factors examined in the literature are Economic Growth, Unemployment, Inflation, Credit Interest Rates and Exchange Rates.The purpose of this paper is to analyze the impact of macroeconomic factors such as GDP Growth, Inflation, Interest Rates on credits and Unemployment on the level of non-performing loans in Kosovo by looking at macroeconomic indicators over the period 2010 - 2018. The purpose of this paper is to analyze the impact of macroeconomic factors such as GDP Growth, Inflation, Interest Rates on the credits and Unemployment on the level of non-performing loans in Kosovo by looking at macroeconomic indicators over the period 2010 - 2018. A multiple regression model was applied to see the effect of these factors on the level of non-performing loans in Kosovo over the years taken in the study. To realize the purpose of the study through this model are defined macroeconomic factors as independent variables as necessary for analysis and is seeing their impact in non-performing loans defined in study as the dependent variable. The results show that interest rates are considered as the main macroeconomic factor affecting the level of nonperforming loans in Kosovo and is the main factor positively related to this type of loans. In recent years, the decline of interest rates in the banking sector has had a positive impact on the decline of non-performing loans, which has increased the financial stability within this sector.

scholarly journals EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

Maintaining Financial Stability in the Banking Sector

2019 ◽  
pp. 30-48
Author(s):  
Meltem Gurunlu
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Basel Accords ◽  
Risk Management System ◽  
Strategic Approach ◽  
Global World

Maintaining financial stability in the banking sector through a well-functioning risk management system is a strategic approach in today's global world where the risks have become much more diversified than ever. This chapter was undertaken in order to investigate the risk management topic by focusing on the experiences learned from the banking crises up-to-date and implications of the Basel Accords which outlined capital adequacy standards to prevent such crises. With paying special attention to the case of Turkish banking system, main challenges and possible solutions are also discussed.

Banking regulation and supervision: lessons from the czech republic

1998 ◽  
Vol 7 (1) ◽  
Author(s):  
Roman Matoušek
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Present Situation ◽  
Banking Regulation ◽  
Banking Supervision ◽  
The Czech Republic ◽  
Regulation And Supervision ◽  
Banking Regulation And Supervision ◽  
Remarkable Progress ◽  
Made In

We have concentrated on the current issues linked to the goals of banking regulation and supervision. Attention has been focused mainly on the problem of entry into and exit form the banking sector and the institutional framework banking supervision as a whole. Although we are aware that the present situation in emerging markets is far from that of standard economies, we argue that remarkable progress has been made in creating an appropriate banking system since the beginning of the 1996.

scholarly journals THE INSTITUTIONAL STRUCTURE OF PRUDENTIAL BANKING SUPERVISION SYSTEM: ACROSS THE WORLD REVIEW

2012 ◽  
Vol 8 (1) ◽  
pp. 251-255
Author(s):  
Kateryna Tsytsyk
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Institutional Structure ◽  
Banking Supervision ◽  
Key Factors ◽  
Supervision System ◽  
The World ◽  
Institutional Organization

The article is devoted to the research of prudential banking supervision, as one of the key factors for ensuring financial stability. The fundamentals of prudential risk-oriented banking supervision system’s organization in current circumstances are defined. Particular attention of this article is paid to the question of optimal institutional organization of prudential banking supervision system with an aim to ensure stability of banking system of the country. The practice of foreign counties in organization of prudential banking supervision system is considered.

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 PROBLEMS OF ENSURING THE FINANCIAL SUSTAINABILITY OF THE BANKING SYSTEM

2021 ◽  
Author(s):  
Olena Tarasova
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Bank Lending ◽  
Financial Sustainability ◽  
Loan Portfolio ◽  
Bank Deposits ◽  
High Inflation ◽  
The Stability ◽  
Banking Institution

The article explores the problems of ensuring the financial sustainability of the banking sector, which plays a very important role in the functioning of the financial system of the state. The role of the stability of the banking system in ensuring conditions of economic growth is justified. It is noted that it is the financial stability of each banking institution that is a prerequisite for the stable functioning of the entire banking system. It is emphasized that since the financial stability of the banking system is influenced by a large number of internal and external factors, for the effective functioning of the banking system of the country must be ready for any challenges to the macro and microenvironment. The main problems of the banking system in modern conditions should be considered the reduction of deposits of the population, deterioration of the quality of the loan portfolio, significant devaluation of the hryvnia, high inflation rates, loss-making of a significant number of banking institutions. It was concluded that the banking system of Ukraine feels a significant dependence on the funds of depositors - individuals, and therefore on factors that affect their behavior in the financial market. Trends of formation of deposit base of commercial banks of Ukraine and imbalances in the sphere of attraction of banking resources were analyzed. The growth of bank deposits of the population is slow, negative changes in their structure are observed. The share of deposits of individuals after the 2014 crisis has become significantly more volatile and risky in terms of financial stability. The increase in lending is complicated by the presence of large portfolios of problem loans, as a result of which there are a number of tasks to increase the efficiency of the loan portfolio, which should ensure a compromise of profitability, liquidity and credit risk acceptable to the bank. The priorities of monetary policy and the main tasks are formulated, the solution of which will allow to intensify lending to the real sector of the economy. Theoretical and practical recommendations have been developed to improve bank lending, increase the profitability of the banking system and capitalize Ukrainian banks.

scholarly journals РЕГУЛЮВАННЯ ДІЯЛЬНОСТІ БАНКІВСЬКОГО СЕКТОРА У КОНТЕКСТІ ЗАБЕЗПЕЧЕННЯ ЙОГО ЕКОНОМІЧНОЇ БЕЗПЕКИ

2020 ◽  
pp. 91-98
Author(s):  
Плукар Л.А.
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Regulation ◽  
Economic Security ◽  
State Regulation ◽  
Crisis Prevention ◽  
Regulation And Supervision ◽  
Systemic Risks ◽  
National Banking System

The article substantiates the need to regulate the banking sector to ensure economic security of its operation. The main tasks of state regulation and supervision of the banking sector have been identified. The types of existing models of the institutional structure of the system of banking regulation and distribution of powers between prudential supervisors are revealed. Requirements for the development of a model of regulatory policy in the banking sector of Ukraine have been formed. The necessity of creating early crisis prevention systems (macroeconomic, based on warning indicators), monitoring of systemic financial institutions, application of macroprudential analysis with regular publication of a strategic document - the Financial Stability Report. The foreign experience of macroprudential regulation and supervision with the help of established specialized divisions of central banks on financial stability and security is reflected. The creation of a separate unit of financial stability and security in Ukraine was initiated, reporting directly to the Chairman of the NBU. The scheme of correlation of subjects of management and tools of maintenance of economic safety of national banking system with separation of subjects of management of economic safety of banking sector, tools of maintenance of economic safety of banking sector at the international and national levels of banking supervision is developed. The implementation of the principles of the Basel Accords in the activity of the banking system of Ukraine is determined as a determining factor in strengthening its financial stability and economic security. The issue of trust in the banking system is one of the main criteria for success, efficiency and security of the banking sector of the economy of each state. The need for monitoring and management of systemic risks has been proved.

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