The Indicative Approach to Evaluating the Effectiveness of Securing the Financial Stability of Credit Institutions on the Basis of the Institutional Environment Diagnosis
It is substantiated that the institutional environment is one of the most important factors that directly influence the preconditions of the financial stability of credit institutions and is a fundamental lever of the effectiveness of its implementation. The article is aimed at developing an indicat...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2019-04-01
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| Series: | Bìznes Inform |
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| Online Access: | http://www.business-inform.net/export_pdf/business-inform-2019-4_0-pages-320_334.pdf |
| Summary: | It is substantiated that the institutional environment is one of the most important factors that directly influence the preconditions of the financial stability of credit institutions and is a fundamental lever of the effectiveness of its implementation. The article is aimed at developing an indicative approach to evaluating the institutional preconditions for the financial stability of credit institutions by diagnosing the institutional environment. It is substantiated that this environment has to perform the following functions: conceptual, regulatory, control, defensive, information, analytical, consulting, explanatory, and educational. Using a functional approach to evaluate the institutional prerequisites for the financial stability of credit institutions, the following components are allocated: 1) conceptual substantiation of the process of ensuring the financial stability of credit Institutions; 2) normative and legal support of the process of ensuring the financial stability of credit institutions; 3) transparency of credit institutions; 4) protection of the rights of consumers of the financial services and credit institutions; 5) regulation and supervision of the activities of credit institutions. Each component contains a list of quantitative and qualitative indicators, the application of which allows to conduct a comprehensive diagnosis of the institutional environment of performance of credit institutions and make informed conclusions about their financial stability in the long term by identifying appropriate institutional threats. |
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| ISSN: | 2222-4459 2311-116X |