Stability analysis of the banking system: a complex systems approach

Karaev, Alan; Melnichuk, Marina; Guev, Timur; Mentel, Grzegorz

doi:10.14254/2071-8330.2017/10-3/20

Cited by 6 publications

(5 citation statements)

References 43 publications

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“…From the banks' perspective, the causes of credit risk can be divided into several sub-causes related to banks' own decisions: credit criteria towards entrepreneurs (Belás et al, 2017;Karaev et al, 2017), client's credit rating (Greene & Saridakis, 2008), measuring default (Balcerzak et al, 2017;Kliestik et al, 2018;Kliestikova et al, 2018;Maciag & Löderbusch, 2017;Siekelova et al, 2017;Gavurova et al, 2017), credit risk duration (Haghani, 2016), and others. Other types of causes are those stemming from the development of political and economic situation in a respective country (Perez et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Evaluation of important credit risk factors in the SME segment

Dvorský

Schönfeld

Kotásková

et al. 2018

Journal of International Studies

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The aim of the paper is to define important credit risk factors in the SME segment, find out how entrepreneurs evaluate these factors, and quantify the differences in their evaluation based on the enterprise's age, gender and attained education level. An empirical research was conducted in relation to the defined aim. 1,141 responses were received by means of the online questionnaire. To process the results, the two-sample t-test was used. Statistical tools such as histogram, Q-Q graph, z-test, and goodness-of-fit tests were applied to verify the assumptions. The results indicate that small and medium-sized enterprises perceive credit risk more intensively in comparison with the pre-crisis era. It was also discovered that the SMEs' knowledge of credit criteria is somewhat low. Entrepreneurs also state that banks' credit criteria are not very transparent. Based on the findings, the length of operating a business has a significant influence on the evaluation of credit risk factors. Experienced entrepreneurs, meaning those operating a business for over 10 years, have a more intense perception of the significance of credit risk, they also have better knowledge of banks' credit criteria, and view credit criteria as more transparent than beginner entrepreneurs.

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Section: Introductionmentioning

confidence: 99%

Evaluation of important credit risk factors in the SME segment

Dvorský

Schönfeld

Kotásková

et al. 2018

Journal of International Studies

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“…When analyzing the literature on the subject and the studies undertaken so far on the determinants of the country's financial security, one could see that in their works the authors most often used such variables as: the level of the budget deficit, the country's foreign reserves, external debt, in % to the GDP, internal debt, in % to the GDP, level of monetization of economy, level of inflation, return on financial assets, the credit portfolio share in assets, and the ratio of the aggregate assets of the banking system to the GDP (Karaev et al, 2017), or indicators such as Government debt/GDP, Government budget deficit/GDP, Long-term interest rate of the government bonds or Money stock (M2)/GDP (Semjonova, 2016). Using the available literature on the subject and based on the results of available studies saying that the banking sector plays a key role in ensuring the financial security of the state, it was decided to study the impact of individual indicators describing the level of financial security of the state on the stability of the share of banking sector assets to GDP.…”

Section: Discussionmentioning

confidence: 99%

Impact factors and structural analysis of the state's financial security

Dankiewicz¹,

Balawejder²,

Chudy-Laskowska³

et al. 2022

Journal of International Studies

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The concept of state financial security is a key one, due to the fact that it reflects the state of the country, its public finances, as well as the state of the financial sector operating within it. An adequate level of state financial security can create optimal conditions for the development of the financial system, financial stability, as well as for the country's economic development and investment attractiveness. One of the main factors that determine a high level of state financial security is the stability of the financial sector. Given that the assets of the banking sector account for a significant, if not an overwhelming share of the total assets of the financial sector, this sector plays a key role in the economy as a whole. Therefore, a stable and secure banking sector is an important element affecting the level of financial security of a country. The paper attempts to define the concept of state financial security and to present its relevance. In addition, the paper also aimed to identify the main factors that most influence the level of state financial security. Eight indicators, generally accepted as those describing the level of state financial security, were applied in the paper and used as the basis for an econometric model expressing the relationship between them and the stable development of the banking sector. The study showed that the stability of the Polish banking sector determined the financial security of the state.

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“…Farmer et al (2012) suggest orienting the management of the financial markets around the approach that links these markets with real economy and macroeconomic modelling and better understanding the processes in the real economy which lead to financial crises. Karaev et al (2017) also refer to banking sector regulation and supervision. They argue that effective system of macroprudential regulation aimed at achieving financial stability should take into account existing modular-hierarchical architecture of banking system.…”

Section: The Reaction Of the System And The Escalation Effectmentioning

confidence: 99%

Dynamics in Complex Systems Amidst Crisis 2008+: Financial Regulatory and Supervisory Reflections

Łasak

Wyciślak

2022

Risks

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Every financial crisis triggers some regulatory and supervisory changes related to the ensuing threats. These regulations usually address specific types of risks and reduce them but do not protect the entire system from another crisis. The aim of this study was to develop a conceptual framework of financial system resilience based on the theoretical approach of complex system theory and its explanation of these systems’ self-adaptation. Our analysis embraces the time since the 2008+ financial crisis in the United States. We argue that the digitalization of financial markets may contribute to the greater safety of the banking sector. We adopted blockchain technology for the pattern of self-modification mechanisms of the financial system. The main findings highlight that the blockchain technology incorporated into the system approach and applied to financial regulation and supervision can significantly improve the safety of the financial markets.

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Stability analysis of the banking system: a complex systems approach

Cited by 6 publications

References 43 publications

Evaluation of important credit risk factors in the SME segment

Evaluation of important credit risk factors in the SME segment

Impact factors and structural analysis of the state's financial security

Dynamics in Complex Systems Amidst Crisis 2008+: Financial Regulatory and Supervisory Reflections

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