The Development of the Banking System in Conditions of Destructive Impact of Internal and External Factors

Zaburanna, L.; Недільська, Л. В.; Абрамова, Ирина Михайловна; Kurovska, Nataliia O.; Martynuk, G.

doi:10.33249/2663-2144-2020-88-3-7-18

Cited by 2 publications

(1 citation statement)

References 3 publications

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“…Information asymmetry hinders the adoption of optimal business decisions, increases transaction costs for producers, and reduces the level of trust in enterprises for customers, partners, counterparties, and investors. The problem of information asymmetry is particularly important in developing countries, as they do not have an effective institutional environment, which leads to the shadowing of business activities Lin, 2016;Zaburanna, 2020).…”

Section: Introductionmentioning

confidence: 99%

Diagnostics оf Transparency оf Ukrainian Banking Institutions Using Multivariate Analysis Methods

Azarenkova¹,

DZIUBLIUK²,

KORNEEV³

et al. 2022

Scientific Horizons

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Due to the imperfect state of transformations in the financial system of Ukraine and the banking sector, there is a steady tendency to increase the number of financially insolvent enterprises in various industries. This is especially true for the banking market, where considerable qualitative and quantitative changes have occurred recently. The purpose of this study is to investigate the problem of managing the of banking institutions by diagnosing the transparency level of their activities. The research methodology lies in forming a system of indicators to estimate the transparency level of business entities’ activities, assessing the level of direct impact on the level of transparency, and classifying business entities according to a two-level system of factors influencing transparency. The final stage of the methodology is the positioning of banks according to transparency level to formulate vectors for improving transparency management policies. The combination of multidimensional analysis methods, namely applied econometric methods, cluster and variance analysis, allows classifying business entities according to the transparency level, considering differentiation. The result of the differentiation is a matrix of positioning the transparency level of banking institutions according to a two-level system of factors. The proposed scientific and methodological approach to calculating the transparency level of a business entity, namely banking institutions, which, apart from the financial block, includes other criteria, enables a much broader study of the state of activity of the business entity. The use of this scientific and methodological approach helps reduce the level of information asymmetry, increase the flexibility of the business entity’s response to external shocks, which increases confidence in business entities, improves their business reputation and is certainly reflected in financial indicators. Positive improvements in the financial performance of individual business entities, increasing the flexibility and trust in them, will help increase the transparency of financial flows that move in the country.

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Section: Introductionmentioning

confidence: 99%

Diagnostics оf Transparency оf Ukrainian Banking Institutions Using Multivariate Analysis Methods

Azarenkova¹,

DZIUBLIUK²,

KORNEEV³

et al. 2022

Scientific Horizons

View full text Add to dashboard Cite

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Credit Risk Management: Marketing Segmentation, Modeling, Accounting, Analysis and Audit

Косова¹,

SMERICHEVSKYI²,

YAROSHEVSKA³

et al. 2022

Scientific Horizons

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The relevance of the research is determined by the urgency of implementing the systems of credit risk management in bank activities based on the international accounting and reporting standards. The high level of complexity of the mentioned problem is related to a significant number of credit market segments and a variety of credit forms. The aim of the research paper is to identify the risk level of individual segments in the loan portfolio at the microeconomic level taking into account macroeconomic factors. The research methods used to identify the credit risk are migration matrices, nonlinear approximation, correlation-regression analysis, statistical distributions, and forecasting. The main research results are as follows: credit segmentation of the loan portfolio was performed, a matrix of credit risk sources was constructed, default probability and default losses were quantified to reflect the expected credit losses in accounting, and the audit of construction of credit risk models was performed. The significance of the research results is determined by the possibility to measure the factors of non-stable macroeconomic situation in Ukraine while estimating the risks of functioning of banking establishments. The proposed approaches to solving the problem of credit risk management allow decreasing the volume of non-operating credits and increasing the profitability of the loan portfolio of a bank. It can be considered that the merits of the research are determining the causal relations between the separate components of credit risk, which can be effectively used to neutralize and decrease them. The emphasis was made on the tools of credit risk management represented by marketing segmentation, modeling, accounting, analysis, and audit. The prospects of further studies include clarification of the methodical approaches to credit risk management in part of the separate market segments

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The Development of the Banking System in Conditions of Destructive Impact of Internal and External Factors

Cited by 2 publications

References 3 publications

Diagnostics оf Transparency оf Ukrainian Banking Institutions Using Multivariate Analysis Methods

Diagnostics оf Transparency оf Ukrainian Banking Institutions Using Multivariate Analysis Methods

Credit Risk Management: Marketing Segmentation, Modeling, Accounting, Analysis and Audit

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