Modern challenges and threats to the economic security of a commercial bank

2021 ◽  
pp. 129-135
Author(s):  
Alexei S. Usov
Keyword(s):  
Commercial Bank ◽  
Economic Security

scholarly journals Economic Security Threat Modelling of a Commercial Bank in a Globalized Economy

2020 ◽  
pp. 142-151
Author(s):  
О.V. Dymchenko ◽  
О.О. Rudachenko ◽  
P. Gazzola
Keyword(s):  
Commercial Bank ◽  
Fuzzy Inference ◽  
A Priori ◽  
Economic Security ◽  
Security Threat ◽  
Research Information ◽  
Inference System ◽  
Security Research ◽  
Threat Modelling

In the paper, one develops a set of models for diagnosing threats to the economic security of a commercial bank, which allows improving the quality of decisions forming and making on managing the safe functioning and development of the bank. The bank's economic security research system has been developed, it includes 3 main blocks: research information space creation; assessment and analysis of the security of a commercial bank; generalization, and formation of decisions on the economic security of a commercial bank. The research made it possible to draw an inference of a theoretical, methodological, and applied nature that reflects the solution of the tasks set following the purpose of the study. A set of models has been built with modern tools of economic and mathematical modelling to improve the quality of decisions made to manage the bank's security and reduce the risks of threats. A model for calculating the bank's economic security indicator has been developed, which includes the following main stages: the construction of a structural scheme taking into account the rules of the theory of banking functioning security, then the terms and their membership functions are set for each input and output variable of the fuzzy inference system under consideration. Results of the response surface for the model are shown in the figure on the graphs of the dependence of the bank's economic security indicator on various input components. The paper requires that it is convenient to diagnose the state of economic security of a bank using fuzzy logic, this allows getting a clear quantitative representation of economic security state of the bank, as the indicators used for diagnostics may be indistinct and approximate and this a priori cannot give an adequate result when accurately calculated.

scholarly journals CREDIT POLICY OF A COMMERCIAL BANK IN CONDITIONS OF UNCERTAINTY OF THE ECONOMIC ENVIRONMENT

2021 ◽  
Vol 5 (40) ◽  
pp. 65-75
Author(s):  
О. Kovalova ◽  
M. Iorgachova
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Economic Security ◽  
Capital Adequacy ◽  
Economic Environment ◽  
Credit Policy ◽  
Holistic View ◽  
General Decline ◽  
Banking Institutions ◽  
Analytical Tools

Abstract. The article examines the concept of «credit policy» through the prism of the functions outlined in the development strategy of the banking institution, which is primarily aimed at maximizing resources for rapid response to uncertainties of the external and internal environment. The complex of identified key characteristics allowed to form a holistic view of the nature and specific features of the commercial bank’s credit policy. The article underlines that in conditions of uncertainty, the bank should take into account external and internal environmental factors that have a direct impact on the dynamics of lending to individuals and businesses, and need to be considered at the stage of strategic financial planning, monitoring the implementation of set tasks and in order to timely adjust the policy according to the banking institution’s needs for financial and economic security. The systematised factors are interrelated and interdependent and can have a multifaceted impact on the current state of the credit services of banking institutions’ market and such market’s trends. The article establishes the role of analysis and monitoring of banking institutions’ credit operations in the context of ensuring the effective results of the commercial bank’s credit policy. It is identified that credit risk is now in the spotlight of banking institutions along with the risks of capital adequacy and legal risks, due to the general decline in economic activity of consumers of financial services as a result of the epidemiological crisis and the introduction of quarantine restrictions, which reduced household incomes and negatively affected the financial situation of enterprises. The dynamics of changes in the share of NPLs by groups of banks is analysed, revealing foreign banks’ active work with NPLs. The study pays attention to the use of analytical tools of the commercial bank’s credit policy as a means of managing its financial and economic security in conditions of uncertainty, which concerns constant monitoring of loan portfolio quality and timely detection of NPLs. It also suggests the sequence of lending steps specifying practical aspects of use of analytical tools of credit policy. Keywords: credit policy, commercial bank, management, uncertainty, economic environment, analytical tools, financial market. JEL Classification E51, G21 Formulas: 0; fig.: 7; tabl.: 0; bibl.: 14.

scholarly journals Organizational and financial mechanism for ensuring financial and economic security of the banking-system

2021 ◽  
Vol 2021 (2) ◽  
pp. 248-255
Author(s):  
Natalia Riazanova ◽  
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Institutional Environment ◽  
Banking System ◽  
Mortgage Lending ◽  
Economic Security ◽  
Bank Loans ◽  
Resource Base ◽  
Banking Secrecy ◽  
Financial Mechanism

an organizational and financial mechanism for ensuring the financial and economic security of a commercial bank is proposed, which, in real time and in situations that cannot be controlled using traditional methods, will minimize potential risks and change the internal institutional environment, positively affecting the financial and economic security of the country's banking system. It is shown that economic growth as a factor of national security is supported by the effective functioning of the banking system and the priority of long-term bank loans provided in the form of investments, which makes it possible to determine the relationship between the growth of the country's economy and the level of financial and economic security of the banking system. The main approaches to ensuring the financial and economic security of the banking system are considered, which include the structure of the primary interests of a commercial bank and indicators of the level of financial and economic security of the banking sector of Ukraine in order to ensure economic stabilization and strengthen the economic potential of the bank. It was noted that an adequate and fundamental marketing strategy will help to promote the growth of the bank's profitability, attract additional customers, form a resource base and reduce risk in banking. Mortgage lending is considered as the most effective tool for attracting funds from the population to the investment sector and meeting their needs for housing. A distinctive feature of the presented organizational and financial mechanism is the use of strategic management methods to form economic resources, improve the image and level of security of information systems, organize effective management of the bank's personnel, which will create conditions for ensuring the proper level of protection against negative factors and threats and increasing the competitiveness of the bank due to increasing the efficiency of the provision of banking services, preserving banking secrecy and the client base, creating new banking products

scholarly journals Possibilities of different methodological approaches in assessment of economic security of the commercial bank

2021 ◽  
Vol 20 (3) ◽  
pp. 117-127
Author(s):  
A. S. Usov
Keyword(s):  
Commercial Bank ◽  
Economic Security ◽  
Methodological Approaches

The article systematizes methodological approaches to assessing the economic security of a commercial bank, describes their essence, highlights the advantages and disadvantages. Criteria for assessing the economic security of a commercial bank are presented from the standpoint of the possibilities of different methodological approaches.

scholarly journals PROBLEMARY ASPECTS OF FINANCIAL AND ECONOMIC SECURITY OF COMMERCIAL BANKS

2019 ◽  
pp. 7-13
Author(s):  
Y. Balatskyi ◽  
V. Murka
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Personnel Selection ◽  
Financial Management ◽  
Commercial Banks ◽  
Economic Security ◽  
Risk Indicators ◽  
Financial Security ◽  
Security Assessment ◽  
Internal Factors

The article substantiates the issue of important aspects of financial and economic security of commercial banks. In order to maintain the financial and economic security of the bank, it is important to comply with a number of conditions. Such conditions include an adequate level of liquidity, securing loan repayments, increasing bank profitability and minimizing banking risks. Models and methods by which the level of financial and economic security of banks are evaluated are analyzed and systematized in the article. All available models are reduced to an economic security assessment, as the bank's work is based on financial transactions. Therefore, the method of ratios and indicators was used to assess the level of financial security of the bank. The study raised the problem of selecting the required number of indicators that most affect the financial and economic security of a commercial bank. Credit risk was chosen among a large number of external and internal factors, as they have a significant impact on creditworthiness and are set to limit the credit risk of the bank. The weakening of financial security is evidenced by a decrease in liquidity and an increase in accounts payable and receivables, non-compliance with credit risk indicators. Therefore, the article analyzes the financial security by internal factors of influence, namely, the credit risk standards H7, H8 and H9. Three banks were selected for analysis: Oschadbank, Alfa-Bank and UkrSibbank. Today, the level of financial and economic security of the bank is insufficient among Ukrainian banks. In order to form a high level of financial and economic security of the bank it is necessary to achieve effective management of all subsystems of the bank, to develop effective financial management of the bank, to carry out careful personnel selection, as well as to ensure effective risk management. Keywords: financial and economic security of a commercial bank, methods of assessing financial security, models of financial security assessment, credit risks.

scholarly journals CONSTRUCTION OF MODELS OF ECONOMIC SECURITY OF COMMERCIAL BANK

2020 ◽  
Author(s):  
Olena Dymchenko ◽  
Olha Rudachenko ◽  
Tatiana Martemyanova
Keyword(s):  
Commercial Bank ◽  
Economic Security
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