Issued since 1995
Welcome to the Finance of Ukraine site (demo).
Login | Register
ACADEMY
OF FINANCIAL
MANAGEMENT
.


№ 6/2016

№ 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) DownloadDownloads :134
1. Acemoglu, D. (2015). Systemic Risk and Stability in Financial Networks. American Economic Review, 105 (2), 564–608.
2. Bernanke, B. S. (2013). The Federal Reserve and the Financial Crisis. Princeton: Princeton University Press.
3. Goldstein, M. (n. d.). The Subprime and Credit Crisis. Retrieved from www.iie.com/publications/papers/goldstein0408.pdf.
4. Eichengreen, B. (2008). Thirteen questions about subprime crisis. Retrieved from eml.berkeley.edu/~eichengr/13%20questions.pdf.
5. Noyer, C. (n. d.). World financial crisis - public and private strategies to overcome the crisis. Retrieved from www.bis.org/review /r090130a.pdf?noframes=1.
6. Stіglitz, J. (n. d.). Too big to live. Retrieved from innovations.com.ua/uk/articles/4/19/1438?textsize=+10 [in Ukrainian].
7. Trichet, J.-C. (n. d.). Systemic Risk. University of Cambridge, Clare College. Retrieved from www.ecb.int /press/key/date/2009/html/sp091210_1.en.html.
8. Baranovs`ky`j, O. І. (2014). Security banking. Bulletin of the National Bank of Ukraine, 6, 20–27 [in Ukrainian].
9. Buryak, O. (2015). The main drivers of the banking crisis years 2008--2009. The efficiency of public administration, 42, 297–302 [in Ukrainian].
10. Vasy`l`yeva, V. V., Fomіna, O. O. (2013). The development of the financial market in the context of the financial security of Ukraine. The young scientist, 1, 9–12 [in Ukrainian].
11. Vakhnenko, T. P. (2008). The financial crisis in Ukraine: factors, mechanisms of action, measures to overcome. Finance of Ukraine, 10, 3–21 [in Ukrainian].
12. Duby`na, M. V. (2014). Conceptual principles of strengthening the financial and economic security of the state through activation of the system of parabank intermediaries. Journal of Chernihiv State Technological University, 3 (75), 188–196 [in Ukrainian].
13. Zavorotnіj, R. І. (2015). The methodology of valuation of companies that are prolonged financial crisis. Finance of Ukraine, 2, 111–126 [in Ukrainian].
14. Zary`c`ka, І. (2009). Background and features of the modern global banking crisis. Bulletin of the National Bank of Ukraine, 6, 20–29 [in Ukrainian].
15. Іvashko, O. (2015). The financial security of Ukraine in conditions of economic crisis. Eastern Economic Journal National University named after Lesya Ukrainian, 2, 61–66 [in Ukrainian].
16. Lyubіch, O. O., Domrachev, V. M. (2014). To ensure the stability of the banking system as a strategic component of financial policy in the context of globalization. Bulletin of the University of banking NBU, 2, 132–134 [in Ukrainian].
17. Pazera, M. (2009). The global financial crisis and its consequences for the banking system of Ukraine. Bulletin of the National Bank of Ukraine, 1, 28–33 [in Ukrainian].
18. Skopa, O. O., Jona, O. O. (n. d.). Security of financial market and financial stability as a public good. Retrieved from dspace.oneu.edu.ua/jspui/bitstream/123456789/1094/1 [in Ukrainian].
19. Tereshhenko, O. O. (2015). Pragmatics calculating the discount rate during the financial crisis. Finance of Ukraine, 6, 58–71 [in Ukrainian].
20. Global Banks and International Shock Transmission: Evidence from the Crisis. (2011). IMF Economic Review. Retrieved from www.palgrave-journals.com/imfer/journal/v59/n1/abs/imfer20109a.html.
21. Garratt, R. J., Mahadeva, L., Svirydzenka, K. (2011). Mapping systemic risk in the international banking network. Working Paper. Retrieved from www.bankofengland.co.uk/research/Pages/workingpapers/2011/wp413.aspx.
22. National Bank of Ukraine. (n. d.). The main indicators of banks of Ukraine. Retrieved from www.bank.gov.ua/control/uk/publish/article?art_id=36807&cat_id=36798 [in Ukrainian].
23. Deposit Guarantee Fund. (n. d.). Derivation of banks from the market. Retrieved from www.fg.gov.ua/not-paying [in Ukrainian].
24. National Bank of Ukraine. (2016). On increasing the capital of banks Ukraine (Decree № 58, February 4). Retrieved from zakon3.rada.gov.ua/laws/show/v0058500-16 [in Ukrainian].
25. European Central Bank. (2011). Financial Stability Review. Retrieved from www.ecb.int/pub/fsr.
26. Verkhovna Rada of Ukraine. (2012). On the system of guaranteeing deposits of individuals (Law № 4452-VI, February 23). Retrieved from zakon5.rada.gov.ua/laws/show/4452-17 [in Ukrainian].