SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL
This article delves into the escalating frequency of financial crises and their repercussions on national economies, emphasizing the imperative need for both the global community and individual nations to establish mechanisms that can effectively counter financial shocks. The primary line of defenc...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2023-12-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4235 |
| _version_ | 1826992796789112832 |
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| author | Miguel Varela Volodymyr Mishchenko Kateryna Cherkashyna |
| author_facet | Miguel Varela Volodymyr Mishchenko Kateryna Cherkashyna |
| author_sort | Miguel Varela |
| collection | DOAJ |
| description |
This article delves into the escalating frequency of financial crises and their repercussions on national economies, emphasizing the imperative need for both the global community and individual nations to establish mechanisms that can effectively counter financial shocks. The primary line of defence within banking institutions is their own capital. Consequently, the adequacy of a country's own capital plays a pivotal role in determining the robustness of its banking system. The article presents an in-depth analysis of the dynamics of fundamental capital types, including own and borrowed capital, and other economic indicators, with a specific focus on the proportion of own capital within these factors in Portugal, an integral part of the European community.
The study employs correlation-regression analysis to explore the interdependencies among capital, liabilities, assets, income, and Gross Domestic Product (GDP). Regression models are developed to investigate the influence on a bank's own capital. The analysis substantiates the hypothesis regarding the interconnections among these key indicators. Based on the findings, recommendations are made for the implementation of a mechanism to ascertain capital sufficiency. The article places significant emphasis on identifying and utilizing instruments that facilitate the achievement of this objective, ultimately contributing to bolstering financial resilience in Portugal and beyond.
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| first_indexed | 2024-03-08T18:20:44Z |
| format | Article |
| id | doaj.art-a7f29b7e83e94f50a2394c8313965361 |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2025-02-18T08:55:07Z |
| publishDate | 2023-12-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-a7f29b7e83e94f50a2394c83139653612024-11-02T23:55:42ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702023-12-0165310.55643/fcaptp.6.53.2023.4235SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGALMiguel Varela0Volodymyr Mishchenko1Kateryna Cherkashyna2D.Sc. in Economics, Professor, Director, Business and Economics School, Lisbon, PortugalD.Sc. in Economics, Professor, Head of the Sector of Digital Economy, Institute of Economics and Forecasting of the NAS of Ukraine, Kyiv, UkraineCandidate of Economy Sciences, Associate Professor, Business and Economics School, Lisbon, Portugal This article delves into the escalating frequency of financial crises and their repercussions on national economies, emphasizing the imperative need for both the global community and individual nations to establish mechanisms that can effectively counter financial shocks. The primary line of defence within banking institutions is their own capital. Consequently, the adequacy of a country's own capital plays a pivotal role in determining the robustness of its banking system. The article presents an in-depth analysis of the dynamics of fundamental capital types, including own and borrowed capital, and other economic indicators, with a specific focus on the proportion of own capital within these factors in Portugal, an integral part of the European community. The study employs correlation-regression analysis to explore the interdependencies among capital, liabilities, assets, income, and Gross Domestic Product (GDP). Regression models are developed to investigate the influence on a bank's own capital. The analysis substantiates the hypothesis regarding the interconnections among these key indicators. Based on the findings, recommendations are made for the implementation of a mechanism to ascertain capital sufficiency. The article places significant emphasis on identifying and utilizing instruments that facilitate the achievement of this objective, ultimately contributing to bolstering financial resilience in Portugal and beyond. https://fkd.net.ua/index.php/fkd/article/view/4235financial crisescapital adequacybanking institutionsequityliabilitieseconomic indicators |
| spellingShingle | Miguel Varela Volodymyr Mishchenko Kateryna Cherkashyna SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL Фінансово-кредитна діяльність: проблеми теорії та практики financial crises capital adequacy banking institutions equity liabilities economic indicators |
| title | SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL |
| title_full | SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL |
| title_fullStr | SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL |
| title_full_unstemmed | SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL |
| title_short | SUFFICIENCY OF BANKING CAPITAL: THE EXPERIENCE OF PORTUGAL |
| title_sort | sufficiency of banking capital the experience of portugal |
| topic | financial crises capital adequacy banking institutions equity liabilities economic indicators |
| url | https://fkd.net.ua/index.php/fkd/article/view/4235 |
| work_keys_str_mv | AT miguelvarela sufficiencyofbankingcapitaltheexperienceofportugal AT volodymyrmishchenko sufficiencyofbankingcapitaltheexperienceofportugal AT katerynacherkashyna sufficiencyofbankingcapitaltheexperienceofportugal |