Ensuring the stability of banks in the context of national security: Tasks for Ukraine

Mykola Mykolaichuk, Olena Lesyk, Olha Todorova

Article ID: 2445
Vol 6, Issue 1, 2023

VIEWS - 820 (Abstract) 152 (PDF)

Abstract


The purpose of the study is the theoretical and methodological substantiation of the mechanism of forming the stability of banks as a component of state regulation of the state of national security. The research methodology is based on comparing the approaches of different countries to the formation of the national security system, identifying standard features and individual characteristics depending on national interests and the conditions of their socio-economic development. The results of the analysis of the experience of different countries are the basis for recognising the importance of Ukraine in ensuring the stability of banks, which depends on the possibility of crediting businesses and citizens, making non-cash payments, and paying pensions, including temporarily occupied territories. Identifying the factors affecting the stability of banks in the conditions of crisis phenomena and choosing the methodology for assessing the strength of banks made it possible to select the most effective instruments for influencing the stability of banks and to outline the tasks for Ukraine. In addition, the monitoring of indicators of the strength of banks and achievements in the sustainable development of the state and regions contribute to the assessment of the effectiveness of public administration at the appropriate levels.


Keywords


stability of the bank; assessment methodology; influence tools; national security; state regulation; management efficiency

Full Text:

PDF


References


1. The UN Trust Fund for Human Security. What is human security? Available online: https://www.un.org/humansecurity/what-is-human-security/ (accessed on 1 May 2023).

2. Law of Ukraine. On national security of Ukraine (Ukrainian). Available online: https://zakon.rada.gov.ua/laws/show/2469-19/print (accessed on 1 May 2023).

3. The Presidential Office of Ukraine. Decree of the President of Ukraine No 392/2020. On the decision of the National Security and Defense Council of Ukraine of September 14, 2020 “On the national security strategy of Ukraine” (Ukrainian). Available online: https://www.president.gov.ua/documents/3922020-35037 (accessed on 1 May 2023).

4. The Presidential Office of Ukraine. Decree of the President of Ukraine No 79/2021. On the decision of the National Security and Defense Council of Ukraine of August 20, 2021 “On the implementation of the National Resilience System” (Ukrainian). Available online: https://www.president.gov.ua/documents/4792021-40181 (accessed on 1 May 2023).

5. Giriuniene G, Cernius G, Giriunas L, Jakunskiene E. Research on the relation between conceptions of the state’s economic and financial security: Theoretical aspect. Journal of Security and Sustainability 2019; 8(4): 609–616. doi: 10.9770/jssi.2019.8.4(5)

6. Ministry of Economic Development and Trade of Ukraine. On approval of the methodological recommendations for calculating the level of economic security of Ukraine (Ukrainian). Available online: https://zakon.rada.gov.ua/rada/show/v1277731-13#Text (accessed on 1 May 2023).

7. Mordan YY, Zhuravka OS, Didenko KV, Kravchenko YI. Financial security of the banking system of Ukraine: essence and evaluation financial security of the banking system of Ukraine: Essence and evaluation (Ukrainian). Business Inform 2021; 1: 243–251.

8. National Bank of Ukraine. Key performance indicators of banks. Available online: https://bank.gov.ua/en/statistic/supervision-statist (accessed on 1 May 2023).

9. Organization for Economic Co-operation and Development. Financial balance sheets counterpart information. Available online: https://stats.oecd.org/Index.aspx?QueryId=103227 (accessed on 1 May 2023).

10. Crockett A. The Theory and Practice of Financial Stability. Princeton University; 1997.

11. Working Party on Financial Stability in Emerging Market Economies. A Strategy for the Formulation, Adoption and Implementation of Sound Principles and Practices to Strengthen Financial Systems. Working Party on Financial Stability in Emerging Market Economies; 1997.

12. The European Parliament and the Council of the European Union. Directive 2009/138/EC of the European Parliament and of the Council of 25 Nov 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II). Official Journal of the European Union 2009; 335: 1–155.

13. The European Parliament and the Council of the European Union. Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EN) No 648/2012. Official Journal of the European Union 2014; 173: 84–148.

14. The European Parliament and the Council of the European Union. Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU. Official Journal of the European Union 2014; 173: 349–496.

15. The European Parliament and the Council of the European Union. Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC. Official Journal of the European Union 2013; 176: 338–436.

16. The European Parliament and the Council of the European Union. Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Official Journal of the European Union 2013; 176: 1–337.

17. Calvo D, Crisanto JC, Hohl S, Gutiérrez OP. FSI Insights on policy implementation No 8. Financial Supervisory Architecture: What Has Changed after the Crisis? Bank for International Settlements; 2018.

18. Reznikova OO, Tsyukalo VY, Palyvoda VO. Conceptual Foundations of the Development of the National Security System of Ukraine: An Analytical Report (Ukrainian). National Institute for Strategic Studies; 2015.

19. Gryshova I, Kyzym M, Hubarieva I, et al. Assessment of the EU and Ukraine economic security and its influence on their sustainable economic development. Sustainability 2020; 12(18): 7692. doi:10.3390/su12187692

20. Balabanyts AV, Haponiuk OI, Horbashevska MO, et al. Management of Financial and Economic Security of the State and Ways to Prevent External and Internal Threats: Monograph (Ukrainian). Michigan State University; 2020. p. 69.

21. Zubko TP. Methods of assessing the country’s economic security (Ukrainian). Derzhava ta Rehiony. Seriia: Ekonomika ta Pidpryiemnytstvo 2022; 2(125): 18–23. doi: 10.32840/1814-1161/2022-2-3

22. Larionova K, Khmyz О. Assessment of the security level of the banking system of Ukraine (Ukrainian) Ekonomichni Nauky 2020; 1(4): 123–129. doi: 10.31891/2307-5740-2020-284-4-23

23. National Bank of Ukraine. Financial Stability Report. National Bank of Ukraine; 2022. 54p.

24. Board of the National Bank of Ukraine. On approval of the rules for assessing the resilience of banks and the banking system of Ukraine in 2023 (Ukrainian). Available online: https://zakon.rada.gov.ua/laws/show/v0056500-23#Text (accessed on 1 May 2023).

25. Ovcharenko OV. Analysis of existing approaches to assessing the economic security of the region (Ukrainian). Science, Technologies, Innovations 2021; 3: 20–29. doi: 10.35668/2520-6524-2021-4-03

26. Dorontseva Y. State regulation during wartime: How the NBU adjusted Ukraine’s financial system in the hundred days to fit new conditions under martial law. Available online: https://voxukraine.org/en/state-regulation-during-wartime-how-the-nbu-adjusted-ukraine-s-financial-system-in-the-hundred-days-to-fit-new-conditions-under-martial-law (accessed on 1 May 2023).

27. National Institute for Strategic Studies (NISS). Overview of tools to support financial stability under martial law in Ukraine (for the period 01.10–31.10.2022) (Ukrainian). Available from: https://niss.gov.ua/news/komentari-ekspertiv/ohlyad-instrumentiv-pidtrymky-finansovoyi-stiykosti-v-umovakh-voyennoho-6 (accessed on 1 May 2023).

28. Ministry of Finance of Ukraine. Fundamentals of strategic reform of the state banking sector (strategic principles) (Ukrainian). Available online: https://www.mof.gov.ua/storage/files/SOB%20Strategy.pdf (accessed on 1 May 2023).

29. National Bank of Ukraine. Data on the volume of loans and NPLs ratio by the Ukrainian banks since 2006. Available online: https://bank.gov.ua/en/stability/npl (accessed on 1 May 2023).

30. Mykolaichuk MM, Drozdove TI. Issues of negative-classified assets of public sector banks of Ukraine. In: Proceedings of IІI International Scientific Conference: Anti-Crisis Management: State, Region, Enterprise; 22 November 2019; Le Mans, France. Baltija Publishing; 2019. pp. 39–42.

31. Mykolaichuk M, Kuspliak I, Lantratov M. Peculiarities for ensuring the sustainable development of the regions of Ukraine in the post-war period (Ukrainian). Derzhavne Upravlinnya: Udoskonalennya Ta Rozvytok 2023; 2. doi: 10.32702/2307-2156.2023.2.8

32. FDIC State Profiles. Available online: http://www.fdic.gov/bank/analytical/stateprofile/Chicago/TI/TL.xml.html (accessed on 1 May 2023).

33. Kyshakevych BY, Majarov DV. Prospects of regional banks development in Ukraine (Ukrainian). Naukovyi Visnyk Uzhhorodskoho Natsionalnoho Universytetu 2017; 1(14): 127–131.




DOI: https://doi.org/10.24294/fsj.v6i1.2445

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Mykola Mykolaichuk, Olena Lesyk, Olha Todorova

License URL: https://creativecommons.org/licenses/by-nc/4.0