scholarly journals PROSPECTS FOR ENSURING THE FINANCIAL SECURITY AND STABILITY OF THE BANKING SYSTEM OF AZERBAIJAN USING THE PRINCIPLES OF THE BASEL ACCORD (BASEL II)

2021 ◽  
pp. 2-4
Author(s):  
T. Garayev
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Basel Ii ◽  
Financial Security ◽  
Basel Accord

The article discusses some aspects of the application of the developed Basel II principles to improve measures to ensure financial stability and security of the banking system of Azerbaijan. The advantages of using this agreement and the effectiveness of its application within the banking system of Azerbaijan are considered.

Pre-GFC Bank Behaviour Change and Basel Accords

2014 ◽  
pp. 35-56
Keyword(s):  
Financial Stability ◽  
Basel Ii ◽  
Regulatory Regime ◽  
Capital Regulation ◽  
Structured Finance ◽  
2008 Financial Crisis ◽  
Basel Accord ◽  
Financial Deregulation ◽  
Regulatory Bodies ◽  
Regulation Change

A most important consequence of de-regulation change has been the transit of banks’ behaviour from acting as financial intermediaries to taking the role as brokers in the structured finance market. The combined effects of financial deregulation, rapid technological change, the evolution of the banking function, and the increasing complexity and diversity of finance activities has left regulatory bodies grappling with the problem of designing appropriate prudential standards. This has been the rationale behind the evolution of capital regulation from the pre-Basel regulation to the 1988 Basel Accord (Basel I); the 1996 Basel I amendment; and then to the new Basel Accord (Basel II). The major thrust of this chapter is to discern the most appropriate and effective regulatory regime for the purposes of achieving financial stability of the system. Accordingly, the occurrence of the recent 2007-2008 financial crisis is raised to offer a preliminary appraisal of the effectiveness of Basel II.

scholarly journals Formation of a Mechanism for Ensuring the Financial Security of the Bank

2021 ◽  
Vol 25 (1) ◽  
pp. 73-78
Author(s):  
Raisa Kvasnytska ◽  
◽  
Inna Dotsenko ◽  
Dmitrii Prystupa ◽  
◽  
...  
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Financial Security ◽  
Investment Funds ◽  
Investment Activity ◽  
Banking Services ◽  
Low Level ◽  
External Threats ◽  
Banking Institution ◽  
The Impact

Annotation. Introduction. The current situation in the market of banking services is due to the influence of internal and external factors that make the bank vulnerable to crises. The financial security of the bank is the key to its stable development, so its research is extremely important. The priority of ensuring the financial security of the bank necessitates a comprehensive approach by developing an appropriate mechanism to ensure the financial security of the bank, taking into account the impact of external and internal threats. Purpose. The purpose of the work is to develop elements of the mechanism for ensuring the financial security of the bank, taking into account internal and external threats. Results. Theoretical problems of the mechanism of financial security of the bank are considered. Based on a critical analysis of the economic literature, the author’s interpretation of the concept of “mechanism for ensuring the financial security of the bank” from the standpoint of the impact of internal and external threats. The purpose and tasks of the mechanism of ensuring the financial security of the bank are highlighted. It is proposed to divide the functions of the bank’s financial security mechanism into basic and specific functions, those that are inherent in banking. The principles of ensuring the financial security of the bank are highlighted. It is substantiated that the process of forming the mechanism of ensuring the financial security of the bank is complex and should take into account the impact of internal and external threats. The threats affecting the financial security of commercial banks are ranked, with their division into internal and external. The main threats to the external environment are: global or local financial crises; falling demand for loans and banking services; the level of distrust on the part of legal entities and individuals in the banking system; refinancing volumes and the size of the discount rate; low level of investment activity in the country, and consequently the lack of investment funds. The main internal threats to the bank’s financial security are: errors in strategic planning and forecasting; irrational use of the bank’s potential; low level of return on assets. The stages of the mechanism of ensuring the financial security of a banking institution on the basis of taking into account the impact of internal and external threats have been formed. Conclusions. Based on the proposed stages of the mechanism of financial security of the bank, taking into account the impact of internal and external threats, we can trace all possible options for using strengths and opportunities in developing a strategy for financial stability of the bank, as well as identify factors influencing the bank. Keywords: threats, internal threats, external threats, collateral, mechanism, financial security of the bank, functions of the mechanism, principles of the mechanism, subjects and objects of the mechanism.

Enhancing Cyber Risk Management with the Framework of ERM and Basel II

2011 ◽  
pp. 34-52
Author(s):  
Junji Hiwatashi
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Financial Stability ◽  
Basel Ii ◽  
Sustainable Growth ◽  
Basel Accord ◽  
Return On Equity ◽  
Customer Base ◽  
Enterprise Risk ◽  
Cyber Risk

Information technology (IT) has been rapidly developed to provide financial services for customers via the Internet. This service is available 24 hours a day, 7 days a week across borders. On the other hand, technology-oriented financial services may face various cyber risks such as disruption caused by natural disasters and terrorist attacks, impersonation and other events stemming from unauthorized access, and theft or alteration of data. Once these events occur, they can affect not only companies such as financial institutions but also their stakeholders (e.g. customers) and financial stability. These events lead to indirect effects such as lawsuits and a bad reputation losing a sound customer base immediately. Thus, it is critical to enhance cyber risk management in advance before the nightmare happens, in order to enjoy the benefits of IT. This chapter introduces practical methods of enhancing cyber risk management efficiently and effectively with the framework of Enterprise Risk Management (ERM) and Basel Accord II (Basel II). It aims to show how to enhance cyber risk management, as well as efficiency, so that sustainable growth is achieved with a balance between risk and return or risk-adjusted return on equity.

scholarly journals Assessment of the Relationship between the Banking System on the Financial Security of the State

2021 ◽  
Vol 26 (1) ◽  
pp. 55-63
Author(s):  
Tetiana Kubakh ◽  
◽  
Yevhen Rudenko ◽  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Public Confidence ◽  
Internal Source ◽  
Financial Security ◽  
External Threats ◽  
The Impact ◽  
The Relationship

Annotation. Introduction. Permanent financial crises, currency fluctuations, inflation expectations, intensification of competition, increasing regulatory requirements for bank capital and risk reserves, military-political instability, globalization processes - all this is pressure for a stable financial condition of the banking system. Given the Anglo-Saxon structure of the financial market of Ukraine, banks are in fact the only internal source of capital for individuals and legal entities, which determines the importance of the impact of the banking system on the financial security of the state. In the conditions of dynamism of the modern world the question of preservation of reliability and efficiency of the modern bank becomes more and more actual. The issue of crisis prevention, threats, risks is given considerable attention in world practice, which is due to the need to maintain public confidence in banking institutions. The resilience of the banking system and its members to internal and external threats cannot be ensured without effective tools for control and influence by the regulator. The state is directly responsible for ensuring not only the stable development of the banking services market, but also the effective functioning of all components of the financial system. Timely analysis of indicators of financial stability of the banking system allows to identify the main problems in the activities of domestic banks and identify areas for their elimination, which will ensure the stability of economic development of the state. Purpose. The purpose of the article is to clarify the essence of the concepts of "financial stability of the banking system" and "financial security of the state", as well as to determine the relationship between financial stability of the banking system and financial security of the state. Results. It is determined that assessing the financial stability of the banking system is an important strategic task to ensure the financial security of the state. The interconnectedness and the place of financial stability of the banking system among such categories as stability, security, efficiency and reliability are substantiated. As a result of the calculation, the place of the banking component in the general structure of the financial security of the state was clarified. The analysis allowed to systematize the main threats to the financial security of the state, the source of which are the factors of the banking sector

scholarly journals ASSESSMENT OF FINANCIAL SECURITY OF THE BANKING SYSTEM OF UKRAINE

2020 ◽  
pp. 51-58
Author(s):  
Davydenko N. ◽  
Kolodiazhna V.
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
The State ◽  
Financial Security ◽  
Monetary System ◽  
Characteristic Features ◽  
The Stability ◽  
Financial Monitoring ◽  
High Level

Today, the basis of financial security of the state is to ensure the stability and security of the banking system, because the decline in confidence in banks causes damage to the financial security of the whole country. The purpose of the article is to study the essence of financial security of the banking sector and develop proposals for its strengthening based on an assessment of the state of the banking sector at this stage of economic development. The primary tasks of the banking system are the stabilization of the monetary system of the state, the accumulation of financial resources of society, ensuring the stability of the national currency, which together have a signi-ficant impact on its financial security. That is why it is necessary to determine the state of the banking sector of the state in terms of its ability to withstand internal and external negative factors in the banking process. Therefore, the state of financial security of the banking system is subject to constant analysis, especially in our time, due to the difficult military-political situation and economic instability in the country, which has negatively affected the activities of commercial banks. The article presents the main indicators of the banking sector of Ukraine during 2014–2019, which provide an opportunity to analyze trends in its state under the influence of internal and external factors. The main characteristic features of the banking system of Ukraine in the conditions of modern challenges are determined. According to the results of the analysis, it can be stated that the state of the banking system of Ukraine is quite unstable, primarily due to the change in the structure of the banking sector and the fact that Ukraine is on the way to overcoming the crisis of the banking system. As a result of the research, measures have been identified to ensure the stability of the banking sector and increase the level of financial security of the banking system. It is established that in order to further ensure the stability of the financial security of the banking system of Ukraine at a high level, considerable attention should be paid to improving the banking management system and tools of state financial monitoring of the banking sector.Keywords: financial security, state, banking system, solvency, financial stability. У статті визначено сучасні підходи до визначення сутності фінансової безпеки банківської системи держави, як основної складової її економічної системи. Визначено основну мету підтримки фінансової безпеки банку та структуру банківського сектору держави в розрізі його платоспроможності. Здійснено оцінку основних показників діяльності банківського сектору держави та проведено аналіз сучасного його стану протягом 2014–2019 рр. на основі офіційної статистичної інформації Національного банку України. Визначено вплив націоналізації ПАТ «Приватбанк» та обґрунтовано основні її наслідки для державної частки банківського сектору. Охарактеризовано ефективність функціонування банківської системи України, а також вплив банківської реформи на нівелювання наслідків кризи банківської системи.Ключові слова: фінансова безпека, держава, банківська система, платоспроможність, фінансова стійкість

STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

2017 ◽  
Author(s):  
Olha Drachevska
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Banking Regulation ◽  
State Regulation ◽  
The State ◽  
Protective Measures ◽  
System Protection ◽  
Banking Activity ◽  
National Bank ◽  
Threatening Situation

The article is devoted to the analysis of scientific approaches to the interpretation of the concepts of "state regulation", "state regulation of banking", "banking regulation" and the measures on which the state regulation of banking is based. An analysis of the scientific literature in various fields allows us to conclude that scholars ambiguously interpret the term "state regulation of banking." Most often, state regulation of banking is seen as a system of measures by which the state through authorized bodies regulates the activities of banks. The domestic legislator considers the concept of "banking regulation" as one of the functions of the National Bank of Ukraine, which is to create a system of norms governing the activities of banks, determine the general principles of banking, banking supervision, liability for violations of banking legislation. The main purpose of banking regulation is security and financial stability of the banking system, protection of the interests of depositors and creditors. The importance of state regulation of banking as an integral part of public policy is emphasized. Effective state regulation of banking activities should ensure stable and uninterrupted operation of the banking system, guarantee the provision of quality services by banks to depositors and borrowers and protect their interests. Preventive and protective measures on which the state regulation of banking activity in Ukraine is based are considered. Preventive measures should be implemented through the approval of mandatory regulations. The application of protective measures should provide protection against the already threatening situation for the bank. Attention is also paid to the forms in which state regulation of banks by the National Bank is carried out. Such forms are administrative regulation and indicative regulation.

The Threats of Ukraine Financial Security: Identification and Systemization

2019 ◽  
pp. 73-80
Author(s):  
Oleksandra Maslii ◽  
Andrii Maksymenko ◽  
Svitlana Onyshchenko
Keyword(s):  
Financial Stability ◽  
System Development ◽  
Financial System ◽  
Economic Security ◽  
The State ◽  
Financial Security ◽  
Monitoring And Control ◽  
Development Indicators ◽  
Security Indicators ◽  
And Control

Place of monitoring and control of risks of financial stability of the state in the system of ensuring financial security of the state was substantiated. Methods of identifying threats to Ukraine's financial security through the current and strategic analysis of financial system development indicators were considered. Tendencies of economic development of Ukraine in the context of revealing sources of threats to financial stability of the state were analyzed. Dynamic analysis of the actual values of the financial security indicators of Ukraine as a whole and its separate components had been carried out. Threats to Ukraine's financial security were identified based on comparative and trend analysis. Reasons for the critical state of debt, banking and monetary security in the financial structure and the preconditions for the emergence of systemic threats had been investigated. Systematization of risks and threats to Ukraine's financial security by its components had been carried out. Influence of systemic threats in the financial sphere on the economic security of the state was generalized. International experience of monitoring financial stability of the state was analyzed. Additional risks to the national financial system are associated with the globalization and digitization of the state financial system that are not taken into account by valid methodological recommendations for calculating the level of economic security of Ukraine were highlighted.

scholarly journals Financial stability and local economic development: the experience of Italian labour market areas

2021 ◽  
Author(s):  
Cristian Barra ◽  
Roberto Zotti
Keyword(s):  
Economic Development ◽  
Labour Market ◽  
Financial Distress ◽  
Financial Stability ◽  
Local Economic Development ◽  
Banking System ◽  
Spatial Effects ◽  
Financial Conditions ◽  
Market Areas ◽  
The Relationship

AbstractRegulators should ensure the smooth functioning of the system and promote regional development. Making the health of financial institutions is therefore a prerequisite for a sustainable economic development. This paper contributes to the literature on the relationship between the financial stability and growth within the area of one country. This implies that institutional, legal, and cultural factors are more adequately controlled for and financial markets are more accurately bounded. Using a rich sample of Italian banks over the 2001–2012 period, this paper addresses whether different measures of financial distress affect economic development of labour market areas in Italy. Results show that the financial stability has a positive effect on local economic development, robust to alternative variables capturing financial vulnerability. The presence of spatial effects is tested showing that better financial conditions of the banking system in neighbouring areas have a detrimental effect on an area’s growth.

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