Does the growth of state bank capital stimulate the development of the financial sector and the economy? A look through the prism of the global financial crisis of 2008-2009

Abstract

The authors of a given article analyze the impact of increasing the share of state bank capital on such indicators of economic development and the financial system of the country as: the quality and depth of financial intermediation, the level of confidence in the banking sector, the level of transaction costs, the policy of banks on lending to the private sector of the economy, the level of political engagement of the banking sector, quality of loan portfolios of commercial bankst rate of economic growth of the country and indicators of economic development. Calculations based on the example of Ukraine give grounds to assert that the existing model of functioning of state-owned banks has a negative impact on the development of the banking system and the economy as a whole.Keywords: banks with state share, state banks, nationalized banks, subsidiary state banks, remedial bank, banking system. JEL Classification: G21, G28.

Illegal activities of financial intermediaries: A burden of trust crisis

“…Structural equation modeling offers an effective way of understanding abstract concepts. This leads to SEM dissemination in social studies (Atef et al, 2017, Lekovic & Bobera, 2018, Alyoubi et al, 2019, Alsua et al, 2019, Muneeb et al, 2019, Akhondzadeh, 2019, Sadiq et al, 2020, including trust (Al Halbusi et al, 2018, Mas'ud et al, 2019. STATISTICA 13.3 was selected for confirmatory modeling and PATH analysis, as well as testing for its reliability and validity.…”

“…At the same time, others have highlighted the relevance of only one side of the financial system deformation characteristics such as efficiency (Brychko et al, 2011, Savchenko et al, 2014, Djalilov et al, 2015, Rekunenko, 2017, Kliestik et al, 2018, 2020a, 2020b, Adewole et al, 2019, Kovacova et al, 2019, quality (Kuzmenko et al, 2014, Vasilyeva et al, 2016, Khan et al, 2020, depth (Buriak et al, 2015), the quality and depth of financial intermediation (Kozmenko at el., 2009, Atef et al, 2017. A broader perspective has been adopted by Gospodarchuk et al (2019), Korzeb et al (2020), who equate financial development to financial stability or resilience of financial institutions or systems in general.…”