Theoretical Aspects of the Bank’s Financial Stability
The article considers the essence of the concept of «financial stability of a banking institution». Both the external and the internal influences on the activities of commercial banks in the current socio-economic conditions of Ukraine are classified and defined. It is pointed out that the bank itse...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Research Centre of Industrial Problems of Development of NAS of Ukraine
2020-05-01
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| Series: | Bìznes Inform |
| Subjects: | |
| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-375_381.pdf |
| _version_ | 1819019606196486144 |
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| author | Vinnychenko Olena V. Hromakova Viktoriia V. |
| author_facet | Vinnychenko Olena V. Hromakova Viktoriia V. |
| author_sort | Vinnychenko Olena V. |
| collection | DOAJ |
| description | The article considers the essence of the concept of «financial stability of a banking institution». Both the external and the internal influences on the activities of commercial banks in the current socio-economic conditions of Ukraine are classified and defined. It is pointed out that the bank itself plays a leading role in financial stability, subject to effective regulation and the use of domestic methods of ensuring financial stability. The existing methodical approaches to assessing the financial stability of banks used in domestic practice are analyzed. On the basis of studying the components of the bank’s financial stability is suggested that the quality of assessment depends on the depth and completeness of accounting of all factors, as well as on the status of the information provision. It is defined that the analytical information provided by the National Bank of Ukraine (NBU) is one of the most significant. Therefore, it is advisable to increase the level of information provided to banks by expanding the volume of official information provided by the NBU, as this information is almost irreplaceable with information from other sources. The main drawback of assessing the financial stability of banks is that this assessment is based on an analysis of the facts that have already occurred, i.e., on the determination of a static financial stability. The analysis and generalization of existing approaches reveals significant differences, both in the components of financial stability and in the indicators used for assessment. It is noted that the methods of assessing the financial condition of bank on the basis of analysis of coefficients and integral methods of assessment have become the most common. A comparative analysis of the existing methods of ranking the financial stability of banks is made. |
| first_indexed | 2024-12-21T03:37:59Z |
| format | Article |
| id | doaj.art-76dc4ed42106495e9922a8a4575f0575 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-21T03:37:59Z |
| publishDate | 2020-05-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-76dc4ed42106495e9922a8a4575f05752022-12-21T19:17:16ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2020-05-01550837538110.32983/2222-4459-2020-5-375-381Theoretical Aspects of the Bank’s Financial StabilityVinnychenko Olena V.0Hromakova Viktoriia V.1Kharkiv National University of Construction Engineering and ArchitectureKharkiv National University of Construction Engineering and ArchitectureThe article considers the essence of the concept of «financial stability of a banking institution». Both the external and the internal influences on the activities of commercial banks in the current socio-economic conditions of Ukraine are classified and defined. It is pointed out that the bank itself plays a leading role in financial stability, subject to effective regulation and the use of domestic methods of ensuring financial stability. The existing methodical approaches to assessing the financial stability of banks used in domestic practice are analyzed. On the basis of studying the components of the bank’s financial stability is suggested that the quality of assessment depends on the depth and completeness of accounting of all factors, as well as on the status of the information provision. It is defined that the analytical information provided by the National Bank of Ukraine (NBU) is one of the most significant. Therefore, it is advisable to increase the level of information provided to banks by expanding the volume of official information provided by the NBU, as this information is almost irreplaceable with information from other sources. The main drawback of assessing the financial stability of banks is that this assessment is based on an analysis of the facts that have already occurred, i.e., on the determination of a static financial stability. The analysis and generalization of existing approaches reveals significant differences, both in the components of financial stability and in the indicators used for assessment. It is noted that the methods of assessing the financial condition of bank on the basis of analysis of coefficients and integral methods of assessment have become the most common. A comparative analysis of the existing methods of ranking the financial stability of banks is made.https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-375_381.pdfexternal factorsinternal factorsranking scorefinancial stability of bank |
| spellingShingle | Vinnychenko Olena V. Hromakova Viktoriia V. Theoretical Aspects of the Bank’s Financial Stability Bìznes Inform external factors internal factors ranking score financial stability of bank |
| title | Theoretical Aspects of the Bank’s Financial Stability |
| title_full | Theoretical Aspects of the Bank’s Financial Stability |
| title_fullStr | Theoretical Aspects of the Bank’s Financial Stability |
| title_full_unstemmed | Theoretical Aspects of the Bank’s Financial Stability |
| title_short | Theoretical Aspects of the Bank’s Financial Stability |
| title_sort | theoretical aspects of the bank s financial stability |
| topic | external factors internal factors ranking score financial stability of bank |
| url | https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-375_381.pdf |
| work_keys_str_mv | AT vinnychenkoolenav theoreticalaspectsofthebanksfinancialstability AT hromakovaviktoriiav theoreticalaspectsofthebanksfinancialstability |