Assessment of financial monitoring efficiency in the banking system of Ukraine
The transformation processes taking place in the global economy and the expansion of global business ties increase the overall vulnerability of the international banking system. One of the problems related to money laundering is the process of evaluating the efficiency of financial monitoring measur...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2020-03-01
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| Series: | Banks and Bank Systems |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13240/BBS_2020_01_Bukhtiarova.pdf |
| _version_ | 1818256929233829888 |
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| author | Alina Bukhtiarova Andrii Semenog Мila Razinkova Nataliia Nebaba Józef Antoni Haber |
| author_facet | Alina Bukhtiarova Andrii Semenog Мila Razinkova Nataliia Nebaba Józef Antoni Haber |
| author_sort | Alina Bukhtiarova |
| collection | DOAJ |
| description | The transformation processes taking place in the global economy and the expansion of global business ties increase the overall vulnerability of the international banking system. One of the problems related to money laundering is the process of evaluating the efficiency of financial monitoring measures. The article discusses the issues of assessing the effectiveness of financial monitoring in the banking system of the country. For Ukraine, this problem is especially relevant, because there is a bank-centric model of the financial market (about 90% of assets go through the banking system) in the country. According to official data, 50% of economic activity in Ukraine ends with money laundering. The article presents the improved method that quantifies the level of financial monitoring system effectiveness at commercial banks of Ukraine based on calculations of the integral index. The index indicates the dynamics of the financial system protection degree from the money laundering threat based on the expediency and efficiency of financial monitoring in the banking system. As a result, more comprehensive conclusions about the level of financial security of the country are made. According to assessments, in 2017–2018 the efficiency of financial monitoring of the banking system of Ukraine was at the middle level (about 64%). The proposed method can be applied to evaluate the effectiveness of the financial monitoring system in any country and become the basis for improving the anti-money laundering system through the banking system.
AcknowledgmentThe study was conducted as part of state budget research of Sumy State University – Formation of a Public Finance Transparency System as a Prerequisite for Combating Corruption in Ukraine (0118U003585) (in the context of evaluating the effectiveness of financial monitoring of the Ukrainian banking system) and Formation of Tools for the Ukrainian Economy Unshadowing Based on Causal Modeling of Interaction Trajectories of Financial Intermediaries (0120U100473) (in the context of substantiating the need and directions for improving the financial monitoring system in Ukrainian banks). |
| first_indexed | 2024-12-12T17:35:34Z |
| format | Article |
| id | doaj.art-e3afb78cae8a40fa889a63c190727398 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-12-12T17:35:34Z |
| publishDate | 2020-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-e3afb78cae8a40fa889a63c1907273982022-12-22T00:17:13ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742020-03-011519810610.21511/bbs.15(1).2020.1013240Assessment of financial monitoring efficiency in the banking system of UkraineAlina Bukhtiarova0https://orcid.org/0000-0003-2631-3323Andrii Semenog1https://orcid.org/0000-0003-3222-9574Мila Razinkova2https://orcid.org/0000-0002-1590-7428Nataliia Nebaba3https://orcid.org/0000-0003-1264-106XJózef Antoni Haber4https://orcid.org/0000-0002-4913-5534Ph.D. in Economics, Senior Lecturer, Department of Finance, Banking and Insurance, Sumy State UniversityPh.D. in Economics, Associate Professor, Department of Finance, Banking and Insurance, Sumy State UniversityPh.D. in Economics, Associate Professor, Department of International Economic Relations, Regional Studies and Tourism, University of Customs and FinancePh.D. in Economics, Associate Professor, Department of International Economic Relations, Regional Studies and Tourism, University of Customs and FinancePhD, WSB Universitie in Posnan faculty in ChorzówThe transformation processes taking place in the global economy and the expansion of global business ties increase the overall vulnerability of the international banking system. One of the problems related to money laundering is the process of evaluating the efficiency of financial monitoring measures. The article discusses the issues of assessing the effectiveness of financial monitoring in the banking system of the country. For Ukraine, this problem is especially relevant, because there is a bank-centric model of the financial market (about 90% of assets go through the banking system) in the country. According to official data, 50% of economic activity in Ukraine ends with money laundering. The article presents the improved method that quantifies the level of financial monitoring system effectiveness at commercial banks of Ukraine based on calculations of the integral index. The index indicates the dynamics of the financial system protection degree from the money laundering threat based on the expediency and efficiency of financial monitoring in the banking system. As a result, more comprehensive conclusions about the level of financial security of the country are made. According to assessments, in 2017–2018 the efficiency of financial monitoring of the banking system of Ukraine was at the middle level (about 64%). The proposed method can be applied to evaluate the effectiveness of the financial monitoring system in any country and become the basis for improving the anti-money laundering system through the banking system. AcknowledgmentThe study was conducted as part of state budget research of Sumy State University – Formation of a Public Finance Transparency System as a Prerequisite for Combating Corruption in Ukraine (0118U003585) (in the context of evaluating the effectiveness of financial monitoring of the Ukrainian banking system) and Formation of Tools for the Ukrainian Economy Unshadowing Based on Causal Modeling of Interaction Trajectories of Financial Intermediaries (0120U100473) (in the context of substantiating the need and directions for improving the financial monitoring system in Ukrainian banks).https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13240/BBS_2020_01_Bukhtiarova.pdfbank supervisionbankseffectivenessmonitoringUkraine |
| spellingShingle | Alina Bukhtiarova Andrii Semenog Мila Razinkova Nataliia Nebaba Józef Antoni Haber Assessment of financial monitoring efficiency in the banking system of Ukraine Banks and Bank Systems bank supervision banks effectiveness monitoring Ukraine |
| title | Assessment of financial monitoring efficiency in the banking system of Ukraine |
| title_full | Assessment of financial monitoring efficiency in the banking system of Ukraine |
| title_fullStr | Assessment of financial monitoring efficiency in the banking system of Ukraine |
| title_full_unstemmed | Assessment of financial monitoring efficiency in the banking system of Ukraine |
| title_short | Assessment of financial monitoring efficiency in the banking system of Ukraine |
| title_sort | assessment of financial monitoring efficiency in the banking system of ukraine |
| topic | bank supervision banks effectiveness monitoring Ukraine |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13240/BBS_2020_01_Bukhtiarova.pdf |
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