Actual problems of the capital stability management in the Ukraine’s banking system
Capital stability of the banking system is the basis of its effective development and realization of its main function – optimal redistribution of capital. So, the aim of the article is to develop indicators of capital stability of the banking system, and to propose the frameworks for the long term...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-06-01
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| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8849/BBS_2017_02_Yehorycheva.pdf |
| _version_ | 1819099597437403136 |
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| author | Svitlana Yehorycheva Oleh Kolodiziev Svitlana Prasolova |
| author_facet | Svitlana Yehorycheva Oleh Kolodiziev Svitlana Prasolova |
| author_sort | Svitlana Yehorycheva |
| collection | DOAJ |
| description | Capital stability of the banking system is the basis of its effective development and realization of its main function – optimal redistribution of capital. So, the aim of the article is to develop indicators of capital stability of the banking system, and to propose the frameworks for the long term capital stability strategy of the banking system in Ukraine. For this purpose, the analysis of micro- and macroeconomic indicators of the capital stability of domestic banks within the period 2007–2016 is made. To carry out the research, there were used the statistic data of the National Bank of Ukraine, its legislative and regulatory documents, the Basel Accords.
Capital stability of the banking system has been defined in the article as the process of ensuring capitalization that is adequate to the banking risks and cyclical economic development. It has been detected that a significant reduction in return on equity of the Ukrainian banks in 2014–2015 even with restoring their liquidity has had a crucial destabilizing impact on their capital stability. In order to improve the assessment of capital stability, its key indicators for the groups of domestic banks have been studied. The necessity of refocusing macroprudential requirements of the National Bank of Ukraine from quantitative indicators to qualitative ones to ensure economic development has been proved. It has been concluded that a necessary condition for restoring the Ukrainian banking system was to develop an effective strategy for ensuring its capital stability, which should be focused on the creation of its diversified structure. |
| first_indexed | 2024-12-22T00:49:25Z |
| format | Article |
| id | doaj.art-04aa2fbcf80c4a6881a190dd88966e34 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-12-22T00:49:25Z |
| publishDate | 2017-06-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-04aa2fbcf80c4a6881a190dd88966e342022-12-21T18:44:28ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742017-06-01122606710.21511/bbs.12(2).2017.068849Actual problems of the capital stability management in the Ukraine’s banking systemSvitlana Yehorycheva0Oleh Kolodiziev1Svitlana Prasolova2Doctor of Economic Sciences, Professor, Department of Finance and Banking, Poltava University of Economics and TradeD.Sc. (Economics), Professor, Head of Banking Department, Simon Kuznets Kharkiv National University of EconomicsCandidate of Economic Sciences, Associate Professor, Department of Finance and Banking, Poltava University of Economics and TradeCapital stability of the banking system is the basis of its effective development and realization of its main function – optimal redistribution of capital. So, the aim of the article is to develop indicators of capital stability of the banking system, and to propose the frameworks for the long term capital stability strategy of the banking system in Ukraine. For this purpose, the analysis of micro- and macroeconomic indicators of the capital stability of domestic banks within the period 2007–2016 is made. To carry out the research, there were used the statistic data of the National Bank of Ukraine, its legislative and regulatory documents, the Basel Accords. Capital stability of the banking system has been defined in the article as the process of ensuring capitalization that is adequate to the banking risks and cyclical economic development. It has been detected that a significant reduction in return on equity of the Ukrainian banks in 2014–2015 even with restoring their liquidity has had a crucial destabilizing impact on their capital stability. In order to improve the assessment of capital stability, its key indicators for the groups of domestic banks have been studied. The necessity of refocusing macroprudential requirements of the National Bank of Ukraine from quantitative indicators to qualitative ones to ensure economic development has been proved. It has been concluded that a necessary condition for restoring the Ukrainian banking system was to develop an effective strategy for ensuring its capital stability, which should be focused on the creation of its diversified structure.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8849/BBS_2017_02_Yehorycheva.pdfbanking system of Ukrainebankscapital adequacycapital stabilityqualitative and quantitative indicators of the capital stabilitysmall banks |
| spellingShingle | Svitlana Yehorycheva Oleh Kolodiziev Svitlana Prasolova Actual problems of the capital stability management in the Ukraine’s banking system Banks and Bank Systems banking system of Ukraine banks capital adequacy capital stability qualitative and quantitative indicators of the capital stability small banks |
| title | Actual problems of the capital stability management in the Ukraine’s banking system |
| title_full | Actual problems of the capital stability management in the Ukraine’s banking system |
| title_fullStr | Actual problems of the capital stability management in the Ukraine’s banking system |
| title_full_unstemmed | Actual problems of the capital stability management in the Ukraine’s banking system |
| title_short | Actual problems of the capital stability management in the Ukraine’s banking system |
| title_sort | actual problems of the capital stability management in the ukraine s banking system |
| topic | banking system of Ukraine banks capital adequacy capital stability qualitative and quantitative indicators of the capital stability small banks |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8849/BBS_2017_02_Yehorycheva.pdf |
| work_keys_str_mv | AT svitlanayehorycheva actualproblemsofthecapitalstabilitymanagementintheukrainesbankingsystem AT olehkolodiziev actualproblemsofthecapitalstabilitymanagementintheukrainesbankingsystem AT svitlanaprasolova actualproblemsofthecapitalstabilitymanagementintheukrainesbankingsystem |