Foreign banks’ asset reallocation in response to the introduction of the Intermediate Holding Company rule of 2016

The implementation of the 2016 intermediate holding company (IHC) rule required foreign banking organizations (FBOs) operating with more than $50 billion total global consolidated assets and with $50 billion or more in U.S. non-branch assets to consolidate their non-branch activities – including their U.S. subsidiaries and U.S. broker-dealers – into holding companies, to be supervised by the Federal Reserve.

Development of integrated marketing Internet communications in the activity of Ukrainian banks

In modern conditions the Internet is developing rapidly. Marketing communications on the Internet is one of the main elements of Internet marketing of banking institutions and an important element in establishing relationships with target audiences and managing them, informing customers, improving the image of the bank. It is determined that the Internet today covers the information, communication and logistics areas of marketing communications of banks. The paper identifies the areas of integrated marketing Internet-communications in the activities of banks and their main elements to present their characteristic. At the present stage of development of Internet-communications in activities banking, it is advisable for banking institutions to use advertising, digital and creative strategies. It was found that the current trends in the development of marketing communications on the Internet also indicate the growth of Internet-communications in social networks as an important mechanism for interesting the bank customers and forming interaction with them and the development by the bank of its website, its attractive design, updating information on it. The results of the study showed that the largest share of Internet users in Ukraine uses mobile phones or smartphones, the number of which is growing, which expands the capabilities of banks in the field of Internet-communications. It was established that the most active banks in the media space are banks with state share: JSC CB «PrivatBank», JSC «Oschadbank», JSC «Ukreximbank» and banks of foreign banking groups such as JSC «Raiffeisen Bank Aval», JSC «OTP BANK», JSC «ALFA-BANK». JSC «FUIB» is among the banks with private capital. At the same time, the largest media activity of banks in 2019 was observed in banks of foreign banking groups, and in 2019, 2021 by the number of messages in state-owned banks. The analysis of the collected marketing information showed that the largest number of messages from the leading banks of Ukraine by categories of media was observed in the Internet media, as the Internet is a convenient, cheap and effective communication channel in all areas activities. The expediency of using the Internet to promote banking products is also due to the fact that recently the effectiveness of traditional channels for disseminating information about banks and their products has decreased. Key words: integrated Internet-marketing communications, banks, Internet marketing, mediaactivity of banks, means of information dissemination

Assessing the Reliability of Ukrainian Banks According to V. Kromonov's Rating Methodology

Assessment of the reliability of banks and their rating is a relevant issue for all participants of the financial market. Taking into account the fact that a methodology should be based on the availability of information data, clarity and openness of the algorithm, and a limited number of analyzed indicators, the authors, for assessing the reliability of the banking system of Ukraine in separate banking groups, chose the most popular methodology of V. Kromonov. The article contains the results of assessment of V. Kromonov's rating model indicators for the period 01.01.2017–01.06.2021 for the banking system of Ukraine in general, as well as for the group of banks with the State-owned share, banks of foreign banking groups and banks with private capital. It is identified that the level of reliability of the banking system of both Ukraine and banking groups is in poor condition, since the calculated values of integral reliability coefficients do not exceed the value of 30 points, which indicates the presence of significant problems in the functioning of the banking market, imbalance of assets and liabilities, low level of solvency of banks and same for liquidity of assets. A comparative characterization showed that the reliability of Ukrainian banks with the State-owned share is significantly inferior to the reliability of banks of foreign banking groups and banks with private capital. It is determined that the amount of equity of the banking system of Ukraine is not sufficient to repay possible losses in case of non-return or return in an impairment form of a working asset. A computation of liquidity coefficients showed a tendency to reduce the level of coverage of liabilities by liquid assets of banking institutions, to reduce the solvency of the banking system and worsen the ability of banks to fulfill their obligations. Improving their reliability should be one of the primary strategic tasks of all banks.

Foreign Banks in China: Start of a New Stage

Received 16.10.2020. The article examines the most recent developments in the evolution of the foreign banks in China. Author provides a brief description of the stages of development of foreign banks in the PRC since the start of the Den Xiaopin’s Reform and Development policy till the present time. The change in assets of foreign banks for the last 15 years is analyzed in details. A comparison of assets of foreign banks with the assets of the China banking system is provided in a form of analytical graph. The author’s assessments of the foreign banking sector over the past ten years give grounds to conclude that there was a stagnation in the development of the foreign banks sector during this period. The recent steps of the Chinese authorities to liberalize the foreign banking sector are analyzed in detail. The author examines the Chinese leader’s systematic approach to the banking reforms and comes to the idea that it consists of three components: the change in the political vision and attitudes, the institution reform of the banking regulators and the reform of banking legislation. An assessment of the impact of liberalization on the development prospects of foreign capital banks is also given. Based on an analysis of the overall scale and impact of recent reforms in the foreign banking sector, the author concludes that a new stage in the development of foreign capital banks in China is likely to begin. The main problems and challenges that foreign banks in China will have to face at a new stage of development are also identified and described.

Independent Guarantee and Suretyship: On the Expediency of Establishment of a Sole Private

The article is devoted to the advisability of the simultaneous existence of two named personal means of securing obligations — a suretyship and an independent guarantee. Suretyship is a traditional guaranteeing obligation that has arisen in a modern form in the law of Ancient Rome and has been developing for two millennia. In turn, an independent guarantee is the result of the evolution of an artificially created, or rather, copied from foreign banking practice, to solve the problems of the command economy by the Soviet civil law institute of guarantee. As a result of the permanent reform of domestic law of obligations, the introduction of pro-creditor approaches in the practice of resolving disputes related to securing obligations, the borders between the suretyship and an independent guarantee are washed away. Both of these means today assume a third party’s monetary liability in case of a debtor’s malfunction in a secured obligation (suretyship is de jure, and an independent guarantee is de facto). There are obvious tendencies to give the qualities of accessory independence of an independent guarantee and, on the contrary, to the formation of signs of the abstractness of suretyship. In this regard, the author makes an assumption about the further development of personal methods of securing obligations in Russian civil law.

Woe to the vanquished? State, ‘foreign’ banking and financial development in Southern Italy in the nineteenth century

After Southern Italy became part of a new, national state in 1860, its financial sector was radically transformed under Piedmontese influence. This article challenges the conventional wisdom that the aggressive penetration of a Northern credit institution, the future Bank of Italy, into the South following unification harmed the local banking system and highlights instead its transformative role in modernising and deepening regional credit markets. On the basis of new statistics, banking and political records, this contribution shows that the introduction of ‘foreign’ banking from Northern Italy under the auspices of a national, constitutional government resulted in a financial revolution and a democratisation of credit supply to the advantage of the whole South. Public banking under the Bourbons had privileged the needs of an absolute government over those of the private economy and of the capital city over those of the rest of the country, retarding financial development. Credit undersupply and regional fragmentation could only be overcome through the integration of the South within a larger Italian market, in which, however, the lion's share went to a predominantly Northern institution.

Treacherous Landscape For Foreign G-Sibs

In 2010, the Dodd-Frank Wall Street Reform and Con- sumer Protection Act restructured the regulatory regime for fi- nancial institutions in the United States by mandating corpo- rate governance reforms and requiring that firms maintain high levels of high-quality capital reserves in their U.S. legal entities. Likely the most consequential of the statute’s provi- sions was that which authorized Regulation YY, a landmark regulation that transformed capital planning and risk man- agement processes among financial institutions in the United States. Along with implementing enhanced prudential stand- ards for the U.S. operations of large, complex financial insti- tutions, Regulation YY altered the corporate structure of for- eign banking organizations (“FBOs”) by requiring large foreign banking institutions to establish a new legal entity, called an intermediate holding company (“IHC”). Put simply, IHCs were created to reorganize and capture, in one umbrella legal entity, all non-branch U.S. operations of FBOs. Further, to ensure robust, localized oversight of U.S. operations, each IHC is required to establish their own board of directors and risk committee, separate and apart from the board and com- mittees of the broader organization. IHCs are also required to comply with both the capital and leverage ratio requirements applied to similarly large domestic financial institutions, and the programmatic requirements associated with firms of that size (resolution planning, CCAR, CLAR). There is another regulation, though, that when coupled with the far-reaching implications of Regulation YY has dis- parately impacted foreign banking organizations. That regu- lation is Regulation W, a longstanding regulation that limits the amount of intracompany transactions banking organiza- tions can engage in. Following the enactment of Dodd-Frank, Regulation W was amended in several ways which limited spe- cifically the types of transactions that FBOs often engage in with their affiliates to manage their liquidity risk and to ab- sorb liquidity shocks. The post-crisis changes made to Regula- tion W have already begun to be rolled back by U.S. regulators, however there has not yet been a detailed analysis of how spe- cifically the interaction between Regulation YY and Regulation W undermines global financial stability. The specific aim of this Note is to evaluate whether Regu- lation YY and Regulation W have destabilized the global fi- nancial system. Institutions’ 2018 and 2019 CCAR results will be the lens through which the impact of the regulations is eval- uated. Specifically, we look at both institutions’ Tier 1 capital ratios and Tier 1 leverage ratios to assess how specifically the IHCs have positioned their liquid capital and adjusted their business model in response to Regulation YY reorganization. Ultimately, we conclude that the interaction between Regula- tion YY and the revised Regulation W has dramatically frag- mented the global flow of capital among FBOs. Regulation YY’s IHC reorganization mandate largely cabins foreign banks’ ability to absorb liquidity shocks through their organi- zations—a result that may pose a serious threat to global fi- nancial stability. That is, the fundamental disruption of insti- tutions’ ability to funnel liquidity to their network of legal entities around the world raises a significant concern regard- ing their resiliency during periods of stress, particularly for those systemically important firms who experienced pervasive liquidity issues in the most recent crisis.

Analisis Kinerja Bank-Bank Jepang Versus Bank-Bank Asing Non Jepang di Indonesia

Analisa kinerja Bank-Bank Jepang versus Bank-Bank Asing Non Jepang di Indonesia was method how people realize when placed their money. This research was important to be studied to find out performance of Japanese Banking beside foreign banking in Indonesia in 5 years form period 2013-2019. This research studies based on liquidity ratios, leverage ratios, activity ratios, profitability ratios, and managerial implications. researcher using t-test, sign test, and wilocoxon test for supported this research. This research can be conclusion about cause of difference and raised financial performance between Japan Bank and foreign Bank because, there are factors that infulnce Japanese banks' capital adequacy which pay great attention to lending in Indonesia. than non-Japanese foreign banks in Indonesia.

ВПЛИВ ІНОЗЕМНОГО КАПІТАЛУ НА БАНКІВСЬКУ СИСТЕМУ УКРАЇНИ В УМОВАХ ГЛОБАЛІЗАЦІЇ

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.