IMPROVING THE MECHANISM OF IDENTIFICATION AND RECOGNITION OF BANKING GROUPS IN UKRAINE
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 4, Issue 60
Abstract
Identification and recognition by the regulator of banking groups operating in the territory of Ukraine is the starting point for predicting, assessing and managing the risks of the banking system whose source is consolidated bank capital. This issue becomes particularly topical at the times of aggravation of crisis phenomena caused both by internal and external processes. The authors have analysed the Regulation on the Procedure for the Identification and Recognition of Banking Groups, approved by the Resolution of the Board of the National Bank of Ukraine dated 09.04.2012 No. 134 which is the basis for the implementation of supervision on a consolidated basis in Ukraine. The authors proved that the process of identification and recognition by the National Bank of Ukraine of banking groups is rather complex and time-consuming. Furthermore, the difference between the terms "identification" and "recognition" has been proved. It was found out that in Ukraine there are different lists of banking groups, namely 1) identified groups and 2) recognized groups. The authors have compiled a list of banks of foreign banking groups that operate in the territory of Ukraine determined by their owners. The article also includes information on recognition of banking groups by the NBU. The peculiarities of banking regulation and supervision on individual and consolidated basis, carried out by the NBU, have been outlined. The forms of statistical reporting submitted by the responsible persons of the banking groups to the NBU have been reviewed, which reveal information on compliance with the requirements to the adequacy of regulatory capital and economic standards by a banking group and its subgroups. A particular attention was also paid to highlighting the forms of regulation (administrative and indicative). The authors suggested the division of banking groups operating in the territory of Ukraine according to the criterion of specificity of consolidated supervision. It was proved that, apart from positive consequences for our banking system, the activity of foreign banking groups in Ukraine is also associated with potential specific risks which in the future may lead to a partial loss of control of the NBU over the national banking and financial systems.
Authors and Affiliations
T. H. Savchenko, L. M. Mynenko
Keywords
Related Articles
- EP ID EP634460
- DOI -
- Views 113
- Downloads 0
USING MODELS SYNTHESIZED BY GMDH MULTI-SELECTION ALGORITHM FOR FORECASTING PROFIT OF JSC “KHMELNYTSKY REGIONAL BREWERY”
Prediction stands strong basis for creating the foundations for a successful business and management activities. It takes place in order to promote the development of any organization and production system and is carried...
CONCEPTUAL PRINCIPLES OF OPTIMIZATION OF ENVIRONMENTAL AND ECONOMIC POLICY OF UKRAINE
The article deals with the problems and peculiarities of the formation mechanism of nature in Ukraine and ways to increase its efficiency and prospects of environmental and economic policy. The article deals with the opt...
THE DIALECTICAL ESSENCE OF THE CONCEPT “EFFECTIVE DEVELOPMENT”
The purpose of this article is to generate a essence of the concept of “effective development” through the analysis of different approaches and opinions, which reflects its main characteristics and will take into account...
INFLUENCE OF RISKS ON THE SYSTEM OF AN ENTERPRISES ECONOMIC SAFETY IN CONDITIONS OF CYCLIC ECONOMIC DEVELOPMENT
In the article, the features of the cyclical development of the economy are investigated due to the presence of various unexpected and random shock effects on the economy, which cause changes in the main macroeconomic pa...
FOREIGN EXPERIENCE OF EXTERNAL DEBT MANAGEMENT: PROSPECTS FOR IMPLEMENTATION OF IT IN UKRAINE
The article examines the problems of the current situation and trends of the growth of the state debt of foreign countries; a comparative analysis of the domestic and foreign debt situation was done. It is argued that no...