A discriminant analysis of financial soundness of deposit takers: Ukraine versus Israel case

Discriminant models for determining the financial soundness for Ukraine and Israel are discussed. These models determine the level of a financial soundness of deposit takers. In this paper The discriminant model based on twenty-four financial soundness indicators for deposit takers over the period from 2008 till 2018 is developed. Though Ukraine and Israel are unitary states, Ukraine, being an industrial and agricultural country with a predominant production of raw materials, is a dynamic industrializing country, while Israel is an industrial country that is dynamically developing, that is why, they are comparable. According to Doing Business-2018, Israel ranked the 54th in the annual rating ease of doing business, while Ukraine did the 76th. Ukraine also ranked the 77th in the ranking of Best Countries for Business (Forbes), and Israel ranked the 74th. Ukraine’s GDP was 112.2 billion USD in 2017, and Israel’s GDP was 350.9 billion USD. This fact reflects national development, progress and living standards of both states, as well as differences between them. The period from 2008 to 2018 was chosen for analysis, because it covers crisis and postcrisis periods of the world economy

Financial stability and its impact on national security state : organizational and legal aspects

Purpose: This paper analyzes the financial stability, the reasons for the low level of financial stability and their impact on the national security of Ukraine. Design/Methodology/Approach: By observation, monitoring of causes and effects of financial stability. Findings: The study found that the main financial stability issues that affected national security in Ukraine were the ineffective regulatory legislation, the high level of distrust in the financial sector, the low growth rates of securities, the high level of credit rates. Also the fact that the financial sector is not capable of securing redistribution of funds in the Ukrainian economy, inefficient use of deposits by the banking sector, insufficient capital of the banking system, low dependence of the banking system on market activity, low level of ability of banks' own capital to cover losses. At the same time banks were exposed to the risk of insolvency of non-financial corporations with insufficient level of money market security and monetization in Ukraine. Practical Implications: A number of problems that negatively affect national security have been systematized. Measures have been developed that will contribute to the development of the financial sector. Originality/Value: With this article we show that the financial stability of the state, its financial dependency / independence can significantly affect national security, economic security, social security, scientific and technological, military and other types of securities.peer-reviewe

An Estimation of Financial Cycle to Determine Counter Cyclical Capital Buffer1

The Basel III Countercyclical Capital Buffer framework has been designed to increase the resilience of the banking sector in periods of upturns in the financial cycle. The main idea is to control banking systems procycical properties which reiterates amplifies risk perception during both in times of distress and buoyant economic activity. Moreover, create a buffer to serve as a shock absorber during downturns. Basel Committee on Banking Supervision’s this regulatory standard built itself on five principles where two of them is related to the estimation of financial cycle. In addition, according to this estimated cycle, a regulatory rule is to be introduced. This study describes the estimation of financial cycle to determine counter cyclical capital buffer for Turkey and tries to build on this methodology by proposing an alternative financial condition index

Implementation of new standards in statistics production, in countries in transition

Project Work presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Information Analysis and ManagementDuring the last decade, the Republic of Moldova as a country in transition faced many issues, including financial crises impact and one more specific event – bank fraud that leaded to closure of three banks that at the closing date counted 34.2% share of total assets of banking system. As a consequence, it was a trigger to reassess the supervision approach for banks and it was decided to implement BASEL III framework in order to have a best conformity with the latest supervision standards. Another needs that were identified – is identification of the reaction of the market to such a big event (closure of three banks) in the mater of financial asset and liabilities distribution between sectors. The question was focused on distribution part, because all financial liabilities of closed banks were repaid by loans provided by the National Bank of Moldova (NBM) by reallocating of deposits to other banks (loans were reallocated by mutual agreements). I this regards, as the National Bank of Moldova tried to reassess the reasons that lead to closure of banks, the process of qualitative changes begun. Were identified many loans provided to affiliated parties, and as a result started an immense investigation on the compliance to all required legal framework for loan activity of closed banks. The year 2014 was a very significant for the financial market, because other financial corporations (non-banking sector) start to increase its market share in loans provided to customers (individuals and corporates) very accelerated. At the moment, the National Bank finalized implementation of Monetary and Financial Statistics Compilation Guide 2016 (International Monetary Fund, 2016), in producing of monetary and financial statistics. Starting with 2014, external statistics is produced according to Balance of Payment Manual version 6 (International Monetary Fund, 2009). Current project will be focused on the experience of the Republic of Moldova in implementation of the financial accounts statistics based on a consequence of environmental factors that I believe can contributed to successful implementation of such valuable and useful statistics. I will try to note some experiences from mentioned activities, which I think are important things that can be considered a problems and will underline ways we used to solve some difficult situations. The structure of Project Work will be as a step-by-step description of actions and strategy approves in order to have financial accounts statistics at a final stage

Banking stability measurement and determinants : evidence from Portugal

Mestrado em Economia Monetária e FinanceiraUm sistema bancário sólido é de importância fundamental para o bom funcionamento de uma economia, pois estabelece uma ponte entre credores e devedores. A estabilidade financeira, particularmente a estabilidade bancária, tem vindo a ganhar maior foco tanto por parte de autoridades de supervisão como académicos devido à sua relação com a economia real. Esta dissertação pretende utilizar uma ferramenta, o índice de estabilidade bancária agregada (ABSI), para avaliar a estabilidade bancária e seus determinantes em Portugal. Para tal, em primeiro lugar, é construído um índice que reflicta a estabilidade bancária durante o período 2010-2019. Em segundo lugar, com recurso a técnicas de séries temporais, é feita uma análise do impacto dos indicadores macroprudenciais para o sistema bancário português. Os resultados sugerem uma melhoria da estabilidade desde 2017 e, em consonância com a literatura empírica, apontam importantes indicadores macroeconômicos como o taxa de crescimento do índice de preços ao consumidor (% ΔCPI) e indicadores financeiros, como a taxa do multiplicador do segundo dinheiro (M2) em relação ao indicador de produto do produto interno bruto (PIB).A solid banking system is of key importance for the well-functioning of an economy, as it establishes a bridge between lenders and borrowers. Financial stability, particularly, banking stability,has been gaining a greater focus from supervisory authorities and academics due to its interconnectedness with the real economy. This dissertation aims to use a tool, the aggregate banking stability index (ABSI), to assess banking stability and its determinants in Portugal. In order to do so, firstly, an index reflecting banking stability during the 2010-2019 period is constructed. Secondly, with recourse to time series techniques,an analysis is made on the impact of macroprudential indicators, for the Portuguese banking system.Findingssuggest for an improvement of the stability since 2017 and, in line with the empirical literature,point significant macroeconomic such as the growth rate of the consumer price index (%916;CPI)and financial such as theratio of the secondmoney multiplier (M2) to gross domestic product (GDP) early warning indicators.info:eu-repo/semantics/publishedVersio

Capital Flows Management During the Post-2007 Global Financial Crisis: The Experiences of SEACEN Economies

Although global financial stability in late 2010 and early 2011 has, in general, improved when compared to the 2008-2009 period of the sub-prime global financial crisis, vulnerabilities remain high. The recent World Economic Outlook of the IMF (WEO, September 2011) underlines the two speed recovery processes taking place in the world economies. In advanced economies, especially those hit hardest by the crisis, firms, government and household sectors continue to be heavily indebted and are likely to spur relatively weak demand. Although the financial markets of these economies have, in most parts, returned to profitability, the overall frail balance sheets reflect the general subdued state of the local economy. In sharp contrast, the emerging economies, including those of the SEACEN region, are posting robust growth rates until the second half of 2011, meeting new challenges associated with strong demand, rapid credit and excess liquidity. Price pressures, including potential asset price bubbles, have been the common themes of policy challenges for the SEACEN economies. Managing macro-financial risks, namely balancing growth, balance sheet soundness of the financial institutions, particularly the banking sector, and keeping a lid on inflationary pressures, have been and will likely be the primary policy challenges for these emerging markets in 2011 and 2012. This paper takes stock of recent trends and developments with regard to capital flows in the SEACEN economies. It elaborates in detail, the breakdowns and compositions of the flows. In particular, the focus of the analyses is on key flows such as the international bank lending activities to the region. The paper also summarises and analyses some of the basic push and pull factors of these flows to understand some of the domestic and external drivers of these flows. Some of the economic consequences of these capital flows and policy dilemma facing the SEACEN economies are also looked at. The paper also examines the policy responses of the central banks/monetary authorities, in particular, to mitigate the negative consequences and maximise the benefits of capital flows.

A discriminant analysis of financial soundness of deposit takers: Ukraine versus Israel case

Discriminant models for determining the financial soundness for Ukraine and Israel are discussed. These models determine the level of a financial soundness of deposit takers. In this paper The discriminant model based on twenty-four financial soundness indicators for deposit takers over the period from 2008 till 2018 is developed. Though Ukraine and Israel are unitary states, Ukraine, being an industrial and agricultural country with a predominant production of raw materials, is a dynamic industrializing country, while Israel is an industrial country that is dynamically developing, that is why, they are comparable. According to Doing Business-2018, Israel ranked the 54th in the annual rating ease of doing business, while Ukraine did the 76th. Ukraine also ranked the 77th in the ranking of Best Countries for Business (Forbes), and Israel ranked the 74th. Ukraine’s GDP was 112.2 billion USD in 2017, and Israel’s GDP was 350.9 billion USD. This fact reflects national development, progress and living standards of both states, as well as differences between them. The period from 2008 to 2018 was chosen for analysis, because it covers crisis and postcrisis periods of the world economy

The utilization of CAMEL framework in analyzing the financial soundness of commercial banks in Malaysia: Pre and in the time of Covid 19

The COVID-19 pandemic has impacted many aspects of the economy, including commercial banking. This research aims to analyze the health of Malaysia's commercial banks before and during the COVID-19 pandemic. To accomplish this, the authors employed the CAMEL framework, widely recognized as one of the best tools for evaluating a bank's health. The study aims to comprehend the pandemic's impact on the financial health of banks during the pandemic. Secondary data was gathered from the financial statements of eight local commercial banks from 2017 to 2021. Results from this study suggest that the performance of commercial banks in Malaysia was generally stable and well-capitalized, with low non-performing loans and strong profitability before and during COVID-19. This study offers a new understanding of the effect of the pandemic on banking operations in Malaysia, a country whose financial system depends mainly on banks

DETERMINANTS OF NON-PERFORMING LOANS IN THE NIGERIA BANKING INDUSTRY

This study examined the determinants of non-performing loans (NPLs) in the Nigeria banking industry between the periods of 2011-2020. The specific objective of the study is to examine the relationship between the measures of bank specific variables [Bank Size (BS), Capital Adequacy (CA), Profitability (PROF), Bank Age (BA), Liquidity (LIQ) and Loan to Total Assets (LTA)] and [NPLs proxy with Non Performing Loans Ratio (NPLR)] in Nigeria. The focus on the banks in Nigeria listed in the Nigeria Stock Exchange and the difficulty in assessing their annual reports and account of 10 banks were drawn out of the 18 deposit money banks (DMBs) for the study. The data for the study was gotten from the annual reports and accounts of the ten (10) banks on the basis of the variables under study and the data was analyzed using descriptive statistics, correlation and multiple regression analysis. The findings revealed that BS, CA and BA have significant effect on NPLR but the effect of BS and BA on NPR are negative while PROF have negative insignificant effect on NPLR of DMBs in Nigeria. This research found that determinants of NPLs have mix effect on NPLR in Nigeria. The findings suggested that BS in relation to total assets should put in consideration when granting loans and also, the DMBs in Nigeria should maintain and implement the capital adequacy policy enacted by the CBN. Keywords:  Non-Performing Loans, Bank Size, Capital Adequacy, Profitability, Bank Age, and Liquidity