CURRENT TRENDS IN THE BANKING CREDIT MARKET OF UKRAINE

InterConf ◽  
2021 ◽  
pp. 29-36
Author(s):  
Lidiia Avramchuk ◽  
Oleksii Muravskyi
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Foreign Currency ◽  
Credit Market ◽  
Current Trends ◽  
Loan Portfolios ◽  
Banking Institutions ◽  
Banking Credit

In recent years, the banking sector of Ukraine has witnessed low lending standards and insufficient protection of creditors' rights. In addition, there were two crises in the country and, as a result, borrowers were unable to repay funds in time. At the same time the quality of loan portfolios deteriorated, therefore more than 50% of all loans became "problematic". Due to the increase in interest rates, most borrowers began to take loans for up to 3 years and in the national currency, because they are less risky. According to statistics, only about 25% of all loans are long-term. In order to encourage borrowers to take long-term loans and borrowings in foreign currency, banking institutions have reduced interest rates on these types of loans, but these actions have given only a slight increase in such loans.

scholarly journals Financial Stability of Banks and Its Monitoring in Ukraine

2020 ◽  
pp. 69-77
Author(s):  
Svitlana Yehorycheva ◽  
Oksana Vovchenko
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Management ◽  
The World Bank ◽  
Banking Institutions ◽  
National Bank

The concept of financial stability of banks as a complex and multifaceted category, the content of which is constantly enriched, has been developed. Approaches to determining the financial stability and financial stability of banks, in particular, are considered. It is noted that modern operational, functional, institutional, technological features of banks cannot but affect the content of their financial stability and update the mechanisms for its ensuring. Emphasis is placed on the need for early adaptation of banking institutions to objective transformations of the economic environment through the integration of risk-oriented approach and the use of advanced methods of bank management in all its business processes. The level of financial stability of banks in Ukraine is monitored, for which the main volume indicators of their activity and the Bank Z-score indicator calculated by the World Bank are analyzed. The analysis of indicators of banks’ penetration into the economy shows that the development of the banking sector lags behind the needs of the real sector, so its financial stability is relative, although there are trends to strengthen it. The constant increase in the capital base of Ukrainian banks and their compliance with capital adequacy ratios is particularly positive. However, the quality of banks’ loan portfolios is unsatisfactory, which poses a threat to their financial stability, even given the large amounts of formed provisions for loan impairment. The dynamics of financial stability indicators calculated by the National Bank of Ukraine confirms the existence of prerequisites for its long-term provision, despite the difficult environmental conditions. The directions of monitoring of financial stability offered in the article allow diagnosing its deterioration in time to prevent critical consequences for the national economy.

scholarly journals Assessment of Competitiveness Factors of an Agent of the Financial Environment: Methodology and Comparative Analysis

2021 ◽  
Vol 110 ◽  
pp. 01006
Author(s):  
Elvira Sitnikova ◽  
Tatyana Kolmykova ◽  
Irina Tretyakova ◽  
Darya Lobacheva
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Capital Intensity ◽  
Loan Portfolio ◽  
The Public ◽  
Current Trends ◽  
The World ◽  
Banking Institutions ◽  
European Economies

The functioning of the banking sector of the economy in the world is characterized by a decrease in its capital intensity due to a decrease in the concentration of foreign capital, a deterioration in the quality of the loan portfolio, an outflow of urgent deposit resources and the receipt of significant losses by banking institutions during the COVID-19 pandemic. Taking into account the current trends in the spread of the virus, the development and implementation of fundamentally new approaches to anti-crisis management in the banking sector of both the world economy and Russia is of great importance today. The COVID-19 pandemic came as a big shock to the global and European economies. While banks are not hit by the pandemic as directly as other retail institutions, they are in the public eye as they provide funding to corporations and individuals. Their stability is crucial for maintaining the efficiency of the entire economic system, not only of a particular country, but also of the world. Currently, the need for a comprehensive study of the competitiveness of a commercial bank is determined by the objective modern conditions of the life of banks operating in a competitive environment. The article proposes the author’s methodology for assessing the competitiveness of a commercial bank, which includes five groups of indicators, which makes it possible to identify not only problematic, but also stable areas of activity. The proposed method for calculating the integral indicator for assessing the competitiveness of a commercial bank has been tested on the example of Russian Agricultural Bank and Sberbank, and a set of measures has been developed to increase the level of competitiveness of a commercial bank.

scholarly journals THE OVERHEATING OF FIVE EU NEW MEMBER STATES AND CYCLICALITY OF SYSTEMIC RISK IN THE BANKING SECTOR

2009 ◽  
Vol 10 (3) ◽  
pp. 219-232 ◽  
Author(s):  
Mejra Festić ◽  
Sebastijan Repina ◽  
Alenka Kavkler
Keyword(s):  
Economic Activity ◽  
Banking Sector ◽  
Foreign Currency ◽  
Baltic States ◽  
Economic Activities ◽  
Loan Portfolio ◽  
Tradable Sector ◽  
The Baltic ◽  
Productivity Gains

Rapid credit growth has been one of the most pervasive developments in recent years in Central and Eastern Europe. We tested for the significance of macroeconomic and banking sector variables that condition non‐performing loan ratios and the hypothesis of procyclicality between economic activity and improving banking‐sector results in the Baltic States, Bulgaria and Romania. The theory of procyclicality between economic activity and the non‐performing loan ratio was proven. The increased economic activity improved the loan portfolio quality of the banking sector, as indicated by a lower NPL ratio. Due to a high share of loans denominated in a foreign currency and the fact of productivity gains in the tradable sector, the appreciation of the real exchange rate contributed to an improvement in loan portfolio quality. The procyclicality of banking sector performance and high economic activities growth could be a signal of an economy overheating and therefore a slowdown in economic activity is likely to accelerate the growth of the non‐performing loan ratio in the Baltic States, Bulgaria and Romania.

scholarly journals INVESTMENT IN HUMAN CAPITAL IN THE CONDITIONS OF INNOVATIVE ECONOMIC DEVELOPMENT

2020 ◽  
Vol 30 (3) ◽  
pp. 362-368
Author(s):  
E.N. Tikhonova ◽  
I.V. Korepanova
Keyword(s):  
Human Capital ◽  
Diffusion Of Innovations ◽  
Technology Development ◽  
Special Role ◽  
Current Trends ◽  
Positive Externalities ◽  
A Company ◽  
Different Levels

Paradoxically, economic slowdown has been one of the major current trends alongside with intensive technology development. Changes in nature of production require employees to acquire qualitatively different skills that were not were not previously needed. In particular, one of them is being able to provide diffusion of innovations. Consequently, investment in human capital is gaining a new meaning, the quality of which contributes to long-term economic growth in modern socioeconomic reality. Investing is being implemented on different levels, starting from an individual and all the way to a company or a government. Every entity plays their own special role in the process of achieving the common goal of improving the quality of human capital. Investing in entities from different levels requires different tools, mechanisms and involves different kinds of risks for investors. Benefits gained from human capital don’t only belong to investors but also take the form of positive externalities.

scholarly journals SECURITY OF CROP PRODUCTION OF SOIL-PROCESSING TECHNIQUE: STATUS AND PROSPECTS

2018 ◽  
Vol 13 (1) ◽  
pp. 132-137
Author(s):  
Губейдулла Юнусов ◽  
Gubeydulla Yunusov ◽  
Марзия Ахмадеева ◽  
Marziya Akhmadeeva ◽  
Алексей Жук ◽  
...  
Keyword(s):  
Crop Production ◽  
Arable Land ◽  
Processing Technique ◽  
Automated Control ◽  
Current Trends ◽  
Increase In Productivity ◽  
Farm Vehicles ◽  
Working Bodies

In Russia for the last 20 years the park of farm vehicles was repeatedly reduced and security of crop production with the soil-cultivating equipment and tractors has significantly worsened. Despite reduction of arable land more than on 40 million hectares, the number of cars on 1000 hectares during the present period are many times lower, than at the countries with the developed agriculture, including in Belarus. The main reasons for reduction of the area of the cultivated arable land, need of their elimination, including due to multiple increase and high-quality improvement of the machine park are specified. The analysis of current trends of development of tillage machines is carried out and the factors influencing this process are shown. The major requirements are increase in productivity due to increase in width of hijacking of cars and power of tractors, ensuring adaptability of cars to agrotechnical requirements due to use of replaceable working bodies and adapters, means of the automated control of quality of work and, in the long term, aggregation with the pilotless power means equipped with GLONASS systems. Types and the predicted need for priority tillage machines taking into account broader performance of pochvovlagosberegayushchy technologies, increases in arable land due to development of 20 million hectares of deposits and updating of the tractor park with his saturation by powerful enegosredstvo are given.

scholarly journals ROLE OF THE FINANCIAL SECTOR IN FINANCING THE ENTERPRISES OF THE REAL SECTOR OF THE ECONOMY

2018 ◽  
pp. 78-84
Author(s):  
Dmytro Malysh
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Banking Sector ◽  
Financial Sector ◽  
Bank Loans ◽  
Positive Trend ◽  
Real Sector ◽  
Real Economy ◽  
The Real

Introduction. Financial sector plays an important role in the financing of business entities in the real economy sector. A possibility of rising funds through the stock or banking sector enables substantially to expand the scope of enterprises. However, the presence of permanent financial crises does not allow companies to use these opportunities in full. Therefore, the assessment of state and trends of the stock and banking sectors in the context of the use of their funds to finance companies in the real sector of the economy becomes important. Purpose. The article aims to identify contemporary issues of development of the stock and banking sectors in the context of their ability to finance companies in the real economy. Method. In order to achieve the goal of the research we have used the following methods: method of structural and dynamic analysis and method of economic and statistical analysis of the development of the stock and banking sectors of Ukraine. Results. It has been determined that the deterioration of the stock market in Ukraine led to its exclusion from the list of marginal markets. The largest segment of the Ukrainian stock and banking sector services the issuers, which are owned by the state. At the same time, the financial sector has features of bank-centeredness since banks play a leading role in financing of companies and in transactions of the stock market. Ukrainian stock market mainly carries out operations with government bonds and only a small part of operations provides financing for the activities of companies through the issue of stocks and bonds. The share of long-term sources of funding is gradually decreasing and it is critically low for economic growth of the country. The tempos of providing long-term and short-term bank loans for the company are slowing down. A positive trend is the reduction of interest rates on loans. There is a need to develop effective measures for using opportunities of the stock and banking sectors as well for financing companies in the real sector of the economy.

scholarly journals Determinanty generowania kredytów gospodarczych w okresie pokryzysowym na przykładzie polskiego sektora banków spółdzielczych

2015 ◽  
Vol 2 (3) ◽  
pp. 143-160
Author(s):  
Krzysztof Kil ◽  
Ewa Miklaszewska
Keyword(s):  
Balance Sheet ◽  
Local Market ◽  
Corporate Sector ◽  
Factors Affecting ◽  
Loan Portfolios ◽  
Area Growth ◽  
Cooperative Banks

The post-crisis period stressed the role of small, local banks in corporatelending, particularly for SME, due to such their advantages as being based onrelationship banking and extensive knowledge of local market. However, it isstill unclear whether it is a short or long-term advantage. The aim of this paper isto analyze the factors affecting the size and quality of the loan portfolios of thePolish cooperative banks. In the empirical part, the study is based on statisticaldata and panel research, based on individual balance sheet data for the banksaffiliated to the BPS SA. The results confirm that the role of cooperative banksin lending to businesses increases, but also pointed to internal diversity of thesector in this area: growth in loans to the corporate sector was particularly strongfor large banks with strong capital, but also resulted in their declining safety andincreasing bad loans portfolio.

scholarly journals DIMINISHING MUSHARAKAHIN ISLAMIC BANKS: AN ANALYSIS BASED ON HOME FINANCING

2021 ◽  
Vol 04 (01) ◽  
Author(s):  
Muhammad Junaid Ali Khan ◽  
Abdul Majid
Keyword(s):  
Banking Sector ◽  
Modern World ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Significant Growth ◽  
Banking Systems ◽  
Widespread Acceptance ◽  
Banking Institutions ◽  
The Common

Islamic Banking is one of the fastest growing banking systems in the modern world. It has also achieved significant growth in the Pakistani banking sector in the recent decades. Diminishing Musharakah (DM) is an Islamic mode of finance which not only provides home financing facilities to the customers but also provides other long term financing transaction such as machinery and equipment financing in Islamic banks. In September 2020, DM has the largest share in the Islamic banking financing in Pakistan at 34.5 percent. Considering the widespread acceptance of DM, this paper discusses the shariah structure of DM and its use as a home finance product, specifically its variants, in Islamic Banking Institutions. This paper also clarifies the issues which create confusions in the minds of the common public about Islamic banking products, emphasizing the importance of this product for Islamic Banking Institutions

scholarly journals Basis Risk and Net Interest Income of Banks

2016 ◽  
Vol 16 (2) ◽  
pp. 40-59
Author(s):  
Piotr Mielus ◽  
Tomasz Mironczuk ◽  
Anna Zamojska
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Balance Sheet ◽  
Actual Cost ◽  
Short Term ◽  
Basis Risk ◽  
Interest Income ◽  
The Difference

Abstract The results of the banking sector are shaped primarily by commissions and net interest income. Net interest income is determined by the difference between the profitability of bank assets and liabilities. In the case when a different method is used to determine interest for each side of the balance sheet, there occurs a basis risk that may lead to the deterioration in the net interest income of the sector. This is the situation in the Polish banking sector, which is characterized by the presence of variable interest rates for long-term assets and fixed interest rates for short-term liabilities. The study aims to verify the following thesis: in an environment of falling interest rates we can observe the deterioration in net interest income of the banking sector, as a result of the materialization of the basis risk. The authors of the article state that the source of the basis risk is the mismatch between the reference rate used to define the interest flow of loans and the actual cost of financing the balance through term deposits collected from non-financial entities.

Analysing the Current Trends in Learning and Development

2015 ◽  
Vol 6 (1) ◽  
Author(s):  
Suruchi Pandey ◽  
Preeti Kerni
Keyword(s):  
Learning And Development ◽  
Group Discussions ◽  
Chi Square ◽  
Statistical Tool ◽  
Current Trends ◽  
Major Factors ◽  
Hr Managers ◽  
Total Turnover

Present paper is an attempt to understand the growing need for nurturing employees to build up human capital and adding value to business. Quality of employees, their development and retention are major factors in determining long-term profitability of business in todays scenario. Though researchers have observed such studies but this research helps to understand the current practices and changing trends which are prevailing in different sectors in Pune region and also demonstrates best practices being carried out in industries. A survey was conducted on 20 different companies and a questionnaire was administered to HR managers. Data was collected through personal interviews, focused group discussions with top management and employees. Statistical tool IBM SPSS 20 was used to analyze data more analytically. Tests performed were chi-square and correlation. In the course of study, it was found that most of the high technology companies prefer online training and low technology companies prefer classroom learning. Companies allocated a percentage of HR or total turnover budget towards training and development. Most of the companies tracked their cost of training through overall cost or budget expended and not for a particular participant or employee attending the training program or expected to attend.

Sign in / Sign up

Export Citation Format

Share Document