scholarly journals CREDIT AND INVESTMENT ACTIVITY IN THE CONDITIONS OF THE COVID-19 PANDEMIC

2020 ◽  
Vol 1 (3) ◽  
pp. 51-59
Author(s):  
P. P. Pastushenko ◽  
V. M. Vasylkovskyi
Keyword(s):  
Interest Rates ◽  
Global Economy ◽  
Banking Sector ◽  
Banking System ◽  
Economic Consequences ◽  
Investment Activity ◽  
Lending Activity ◽  
The Individual ◽  
Investment Process ◽  
The Impact

The article is devoted to the practical analysis of credit and investment activity in the conditions of the COVID-19 pandemic. A vision of the factors influencing the COVID- 19 pandemic on the global economy has been formed. The dynamics of issued loans is analyzed and the scale of lending activity is calculated. It is noted that the impact of the COVID-19 pandemic on lending occurs in the presence of the following risks: declining incomes of potential borrowers limit their ability to service loans, and there is uncertainty about the recovery of income of citizens and businesses in the near future; deteriorating creditworthiness of borrowers and increasing credit risk lead to higher interest rates on loans, which limits the demand for them; banks are tightening lending standards, including lowering limits on credit products; restriction of borrowers' mobility, which has become an obstacle to obtaining a loan and is absolutely critical for those of them who do not use remote banking; lack of capital in banks to increase lending. Areas of participation of banks in the investment process are highlighted: mobilization of funds by banks for investment purposes; providing loans of investment nature; investing in securities (both at the expense of the bank and on behalf of the client). The comparison of credit and investment activity is carried out. It is proved that the period of the COVID-19 pandemic did not significantly affect the credit and investment activities of the banking system of Ukraine. It is determined that the economic consequences of the pandemic and the slowdown in economic growth may further affect the banking sector of Ukraine, and this will require unprecedented action at both the individual and national levels. Further research involves identifying different scenarios.

scholarly journals Problems of the development of the banking sector after the pandemy

2021 ◽  
Vol 110 ◽  
pp. 01038
Author(s):  
Fedor Buraev ◽  
Marina Danilina ◽  
Elena Kostromina ◽  
Anna Silaeva
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
Banking System ◽  
Subsequent Development ◽  
The Real ◽  
Long Term Consequences ◽  
The Impact

The coronavirus pandemic has negatively impacted the global economy. The banking sector is no exception. The authors analyze the impact of the coronavirus on the functioning and subsequent development of the banking sector in Russia. If we consider this pandemic as a one-time event, then the banking system will recover quickly enough, and there will be no tragic long-term consequences. However, if we talk about the coronavirus pandemic as a recurring event that will occur at intervals of two or even three times a year, then the real consequences are still difficult to assess.

scholarly journals DEVELOPMENT OF THE BANKING SECTOR OF UKRAINE IN THE SPACE OF FORMATION OF DESTRUCTIVE CONSEQUENCES OF THE INFLUENCE OF THE GLOBAL FINANCIAL AND ECONOMIC CRISES: ECONOMIC AND LEGAL ASPECTS

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 137-145
Author(s):  
V. Y. Vovk ◽  
Yu.V. Zhezherun ◽  
V.G. Kostohryz ◽  
V. О. Maliarova
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Economic Crisis ◽  
Global Economy ◽  
Banking Sector ◽  
Banking System ◽  
Negative Consequences ◽  
Economic Crises ◽  
The World ◽  
The Impact

The article examines the impact of globalization on the development of the world and national economic systems. The high probability of a global economic recession due to the coronavirus outbreak is projected to have significant consequences for both the global economy and the economy of Ukraine. Due to the probable change in the structure of the world economy and logistics, there is a growing need to study the risks of the national banking system, which demonstrates a high dependence on global financial markets. The peculiarities of the manifestation of financial and economic crises in the conditions of turbulence of the international financial markets and strengthening of financial instability have been considered. The causes and consequences of crises in the banking sector of Ukraine have been studied. The analysis of macroeconomic indicators of economic development of Ukraine during 2006-2019 with identifying of crisis periods has been carried out. Particular attention has been paid to the study of the preconditions for the emergence and consequences of the global financial and economic crisis for the economy of Ukraine in general and the banking sector in particular. Indicators that characterize the degree of penetration of the banking system into the economy of Ukraine have been analyzed, that will determine the features of crises at different stages of socio-economic development and conduct a comparative assessment of anti-crisis measures of the NBU aimed at stabilizing the banking sector. Taking into account the fact that the causes of financial and economic crises are not identical, measures used during the Global Financial and Economic Crisis of 2007-2011 cannot be taken to overcome the negative consequences of the Coronacrisis of 2020. Regulatory aspects of the banking system in times of crisis have been systematized. An attempt to predict the possible development of events in the domestic banking sector in the context of the Coronacrisis of 2020 has been made. The purpose of the article is to study the development trends of the banking sector of Ukraine in the space of formation of the destructive consequences of the global financial and economic crises and to determine the main directions of anti-crisis regulation of banking.

scholarly journals Monetary policy collision on the performance of banking sector in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Belavadi Nikhil ◽  
Shivakumar Deene
Keyword(s):  
Monetary Policy ◽  
Public Sector ◽  
Central Bank ◽  
Interest Rates ◽  
Banking Sector ◽  
Banking System ◽  
Economic Situation ◽  
Content Type ◽  
Public Sector Banks ◽  
The Impact

Purpose The study aims to identify the impact of monetary policy tools on the performance of banks in India, and this could be an excellent suggestion to the regulators in framing the favourable interest rates which would meet the macroeconomic objectives of the Indian economy. Design/methodology/approach The design adopted in this study is descriptive and analytical research. Correlation and regression analysis is used to determine the relationship between bank rate (BR) and the performance of public sector banks in India. The sample chosen for this study is the public sector banks actively performing in India. Findings The performance is measured by taking three factors, and they are deposits, loans and advances (L&A) and total asset value of the banks. All three factors have shown an impact of BR on them during the five years. L&A affected the least amongst the three factors, but the other two were significantly impacted by the change in BR by the Reserve Bank of India. So, there should be a favourable fluctuation in the BR which will bring flexibility in the banking system, and they can perform well in the economy and the central bank also can concentrate on the macro-economic situation in the country. Originality/value This paper helps in giving suggestions to the Central bank, researchers, financial institutions to look into the financial performance and monetary policy rates and the central bank also can concentrate on the macro-economic situation in the country.

scholarly journals Phasing-in Basel III capital and liquidity requirements in post-revolution Egypt.

2012 ◽  
Vol 1 (3) ◽  
pp. 36-43
Author(s):  
Monal Abdel-Baki
Keyword(s):  
Banking Sector ◽  
Credit Rating ◽  
Banking System ◽  
Business Environment ◽  
Basel Iii ◽  
Macroeconomic Performance ◽  
Basel Committee ◽  
Global Banking ◽  
The Individual ◽  
The Impact

The Basel Committee has introduced a new set of capital and liquidity requirements to be introduced by the global banking system during 2013 till January 2019. Egypt possesses a well-capitalised banking sector, yet it has been exposed to the devastating shock imposed by its popular revolution. Using the GMM method, the impact of introducing the new capital and liquidity requirements on the macroeconomic performance of the Egyptian economy is examined. The results reveal that Egyptian banks are motivated to enhance capital and liquidity ratios in the case of realizing high profits and favourable conditions at the individual banking level. On the other hand, negative macroeconomic performance and a poor business environment substantially deter the preparedness of Egyptian banks to meet the Basel III requirements. The analysis is timely given the need for compliance with Basel III as one of the requirements to raise the credit rating of the devastated economy.

scholarly journals Investigating the Determinants of Nonperforming Loans in the Romanian Banking System: An Empirical Study with Reference to the Greek Crisis

2011 ◽  
Vol 2011 ◽  
pp. 1-13 ◽  
Author(s):  
Sofoklis D. Vogiazas ◽  
Eftychia Nikolaidou
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Banking System ◽  
Stress Tests ◽  
Nonperforming Loans ◽  
Greek Crisis ◽  
Time Series Modelling ◽  
Recent Financial Crisis ◽  
Greek Banks ◽  
The Impact

This paper aims to investigate the determinants of nonperforming loans in the Romanian banking sector by means of time series modelling. It is motivated by the hypothesis that macroeconomic-cyclical indicators, monetary aggregates, interest rates, financial markets, and bank-specific variables influence the nonperforming loans in the Romanian banking system. Using monthly series that span from December 2001 to November 2010, we cover both the booming period and the recent financial crisis. Given the significant presence of the Greek banks in Romania, the novelty of the paper lies in the introduction of variables that proxy the Greek crisis. Thus, we examine the existence of a potential transmission channel to the Romanian banking system by investigating the impact of the Greek crisis to the Romanian nonperforming loans. Our findings indicate that macroeconomic variables, specifically the construction and investment expenditure, the inflation and the unemployment rate, and the country's external debt to GDP and M2 jointly with Greek crisis-specific variables influence the credit risk of the Romanian banking system. The results have several implications for policymakers, regulators, and managers as the most recent published stress tests on the Romanian banking system are based on end 2008 data.

scholarly journals IMPACT OF MACROECONOMIC FACTORS IN NONPERFORMING LOANS IN KOSOVO

2019 ◽  
Vol 34 (1) ◽  
pp. 125-131
Author(s):  
Donjeta Morina
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Influential Factors ◽  
Gdp Growth ◽  
Macroeconomic Factors ◽  
Nonperforming Loans ◽  
Macroeconomic Indicators ◽  
The Impact

An efficient and developed banking system is essential for the growth of any economy and the purpose of any banking system is to operate profitably in order to maintain sustainability and financial stability. Banks carry out many activities to make a profit, and the main activity of each bank is lending, thus enabling consumption and investment in the economy. Despite the importance of this activity in terms of income for banks, the lending process is not as easy as one might imagine. During this activity, banks faced delays from borrowers, which resulted in non-performing loans, as an obstacle to the efficiency of banking activities. The level of these loans varies from country to country and is nowadays considered as an integral part of the commercial banking of each country. There are many factors that directly or indirectly affect the level of these loans and the key influential factors are considered the macroeconomic factors. They are considered to be the main cause of the increase in non-performing loans as they generally affect all sectors of the economy. As a result of the negative reversal of these factors, borrowers will encounter liquidity shortages, which in turn will increase the likelihood of delays in fulfilling liabilities to the bank, in this case directly affecting the level of nonperforming loans. The key macroeconomic factors examined in the literature are Economic Growth, Unemployment, Inflation, Credit Interest Rates and Exchange Rates.The purpose of this paper is to analyze the impact of macroeconomic factors such as GDP Growth, Inflation, Interest Rates on credits and Unemployment on the level of non-performing loans in Kosovo by looking at macroeconomic indicators over the period 2010 - 2018. The purpose of this paper is to analyze the impact of macroeconomic factors such as GDP Growth, Inflation, Interest Rates on the credits and Unemployment on the level of non-performing loans in Kosovo by looking at macroeconomic indicators over the period 2010 - 2018. A multiple regression model was applied to see the effect of these factors on the level of non-performing loans in Kosovo over the years taken in the study. To realize the purpose of the study through this model are defined macroeconomic factors as independent variables as necessary for analysis and is seeing their impact in non-performing loans defined in study as the dependent variable. The results show that interest rates are considered as the main macroeconomic factor affecting the level of nonperforming loans in Kosovo and is the main factor positively related to this type of loans. In recent years, the decline of interest rates in the banking sector has had a positive impact on the decline of non-performing loans, which has increased the financial stability within this sector.

The Role of Threat and Economic Uncertainty in Support for Scottish Independence

2014 ◽  
Vol 23 (1) ◽  
pp. 103-124 ◽  
Author(s):  
Daniel Kopasker
Keyword(s):  
Economic Consequences ◽  
Perceived Threat ◽  
Constitutional Change ◽  
Lack Of Information ◽  
Economic Expectations ◽  
Scottish Independence ◽  
The Individual ◽  
The Impact ◽  
Levels Of Support

Existing research has consistently shown that perceptions of the potential economic consequences of Scottish independence are vital to levels of support for constitutional change. This paper attempts to investigate the mechanism by which expectations of the economic consequences of independence are formed. A hypothesised causal micro-level mechanism is tested that relates constitutional preferences to the existing skill investments of the individual. Evidence is presented that larger skill investments are associated with a greater likelihood of perceiving economic threats from independence. Additionally, greater perceived threat results in lower support for independence. The impact of uncertainty on both positive and negative economic expectations is also examined. While uncertainty has little effect on negative expectations, it significantly reduces the likelihood of those with positive expectations supporting independence. Overall, it appears that a general economy-wide threat is most significant, and it is conjectured that this stems a lack of information on macroeconomic governance credentials.

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

IMPROVING THE EFFICIENCY OF USING INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE BANKING SYSTEM

2021 ◽  
Vol 4 (4) ◽  
pp. 41-46
Author(s):  
Ra’no Parpieva ◽  
◽  
Nafisa Norboyeva ◽  
Adiba Turayeva
Keyword(s):  
Information And Communication Technologies ◽  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Modern Society ◽  
Communication Technologies ◽  
Payment Systems ◽  
Information And Communication ◽  
Effective Use ◽  
The Impact

This article will serve to select the system required for the effective use of information and communication technologies in the banking system and the impact of national payment systems in the banking sector on modern society, the effective use of new modern information technologies in the system.Study of foreign experience to select information and communication technologies that should be used in modern banks with information and communication technologies in the banking system, which have been used before.

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