№ 6/2016

Fìnansi Ukr. 2016 (6): 82–

MARKET OF FINANCIAL SERVICES

RYSIN Vitalii ¹

¹Lviv Polytechnic National University
OrcID ID : https://orcid.org/0000-0002-2883-4563

AREAS OF IMPROVING FINANCIAL SECTOR SECURITY IN A PERIOD OF CRISIS

The article deals with the issues of ensuring financial sector stability and increasing the security of financial intermediaries’ operations in the market. The goal of research is to substantiate approaches to increasing the security of financial instruments in the Ukrainian financial market as well as designing bank capital and liquidity management mechanisms that will allow banks to be more resilient to systemic crises and, if they occur, form capital buffers in a timely manner. The article provides arguments in favor of the approach that involves balancing the opportunities for the introduction of innovative financial instruments and restrictions of their negative effect on investors. It is determined that one of the key factors that allowed the crisis to spread in the domestic banking sector in 2008-2015 is the interdependence of banks in Ukraine. This interdependence becomes apparent in the existence of the same portfolios of assets and liabilities and the correlation of balances. In view of the systemic nature of problems of the Ukrainian banking sector and the need to mitigate risks of its operations, a mechanism of countercyclical capital charges is recommended. This mechanism allows for a more effective allocation of capital in the system and the reduction of the negative effect of bank failures. The countercyclical capital charges need to be accumulated in the government stabilization fund and must be obligatory for all banks. The objective of this fund is to mitigate the negative consequences of financial crises for investors and depositors of distressed banks by maximizing the value of their assets, and providing opportunities for returning these assets to productive use as soon as possible, especially if a distressed bank is to be sold. The article explains the benefits of combining the activities of the deposit guaranty system and those of the stabilization fund. These benefits include the reduction of operating costs, full compliance with the requirements of investors and depositors, and expansion of the range of opportunities for bank rehabilitation.

Keywords:financial sector, financial instruments, security, banks, stabilization fund.

JEL: G10, G21, G23.

RYSIN V. . AREAS OF IMPROVING FINANCIAL SECTOR SECURITY IN A PERIOD OF CRISIS / V. . RYSIN // Фінанси України. - 2016. - № 6. - C. 82-.

Article original in Ukrainian (pp. 82 - 95)

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