Assessment of the current state of the use of non-monetary methods of state regulation of financial recovery of banks

Authors

DOI:

https://doi.org/10.15587/2706-5448.2021.225700

Keywords:

financial recovery of banks, state regulation methods, central bank, mechanisms of non-monetary regulation measures

Abstract

The object of research is the processes of state regulation of financial recovery of banks by non-monetary methods. One of the most problematic areas is determining the practical aspects of regulating the financial recovery of banks by non-monetary methods, which include:

– establishment of mandatory requirements for banking services and business processes;

– carrying out checks and taking measures in the event of a violation;

– establishment of methods of organizing or conducting banking activities in the process of financial recovery;

– licensing rules. An important aspect is the identification of factors that exacerbate the problems of the banking system, in particular, lead to large-scale lending to related parties; opaque ownership structure; inaccurate financial statements; fictitious accounts in foreign banks; money laundering and the like. Improvement of state regulation of financial recovery of banks through the use of preventive measures is possible with the effective use of non-monetary methods of such regulation.

The study used methods of analysis and synthesis, induction and deduction, methods of systematization and comparison, tabular and graphical methods. The composition of monetary instruments and their features have been determined. The proposed measures for non-monetary regulation of financial recovery of banks are related to:

– improving the procedure for disclosing information on the ultimate owners of the bank;

– strengthening the responsibility of banks for the results of their activities;

– improving the mechanisms for minimizing credit risks for banks both at the stage of issuing a loan and at the stage of its servicing;

– improving the procedure for financial restructuring of problem assets of banks;

– set of recreational measures to restore the bank’s solvency, prevent bankruptcy or increase its competitiveness.

The use of non-monetary methods of financial recovery and the introduction of the requirements of European legislation into national banking practice testifies to the improvement of state regulation of financial recovery of banks, protects them from insolvency and ensures development.

Author Biography

Roman Stadniychuk, Banking University

Postgraduate Student

References

  1. Afanasieva, O. B. (2010). Zarubizhnyi dosvid antykryzovoho upravlinnia v bankakh. Problemy i perspektyvy rozvytku bankivskoi systemy Ukrainy, 29, 159–167.
  2. Vovchak, O. D., Rudevska, V. I. (2018). Peculiarities of ensuring financial sustainability of the Ukrainian Banking System. Banks and Bank Systems, 13 (1), 184–195. doi: http://doi.org/10.21511/bbs.13(1).2018.17
  3. Svitalkova, Z. (2014). Comparison and evaluation of bank efficiency in selected countries in EU. Procedia Economics and Finance, 12, 644–653. doi: http://doi.org/10.1016/S2212-5671(14)00389-X
  4. Kornyliuk, R., Kornyliuk, A. (2018), Ukrainian Banks’ Business Models Under Systemic Risk. CEUR Workshop Proceedings, 2105, 124–138. Available at: http://ceur-ws.org/Vol-2105/10000124.pdf
  5. Vovchak, O. D., Senyshch, P. M., Melnyk, T. V. (2019). «Purging» of the banking system: impacton the key performance indicators of banks. Financial and Credit Activity: Problems of Theory and Practice, 1 (28), 16–25. doi: http://doi.org/10.18371/fcaptp.v1i28.161886
  6. Melnyk, T. V. (2017). Funktsionuvannia bankivskoi systemy Ukrainy v umovakh yii reformuvannia. Finansovyi prostir, 4 (28), 49–54. Available at: https://fp.cibs.ubs.edu.ua/index.php/fp/article/view/536
  7. Broeders, H., Khanna, S. (2015). Strategic choices for banks in the digital age. McKinsey&Company. Available at: https://www.mckinsey.com/industries/financial-services/our-insights/strategic-choices-for-banks-in-the-digital-age
  8. Popov, V. L. (2008). Strategiia ozdorovleniia predpriiatiia. Perm: Iz-vo PGTU, 117.
  9. Cherep, A. V., Romanchenko, O. O. (2010). The determination of measures for renewal the solvency of debtor. Visnyk Zaporizkoho natsionalnoho universytetu, 1 (5), 213–219.
  10. Ofitsiinyi sait Natsionalnoho banku Ukrainy. Available at: https://bank.gov.ua
  11. Dani finansovoi zvitnosti bankiv Ukrainy. Available at: https://bank.gov.ua/statistic
  12. Fedorenko, M., Lychenko, O. (2019). Khto platyt za bankrutstvo bankiv? Yurydychna hazeta, 17-18 (671-672). Available at: http://yur-gazeta.com/publications/practice/bankivske-ta-finansove-pravo/hto-platit-za-bankrutstvo-bankiv.html
  13. Pro vnesennia zmin do deiakykh zakoniv Ukrainy shchodo vdoskonalennia protsedury provedennia finansovoi restrukturyzatsii (2019). Zakon Ukrainy No. 112-IX 19.09.2019. Available at: https://zakon.rada.gov.ua/laws/show/112-20
  14. Kostetska, Yu. (2020). Spilne provedennia finansovoi restrukturyzatsii dlia kilkokh borzhnykiv: shcho i yak. Available at: https://yur-gazeta.com/publications/practice/bankivske-ta-finansove-pravo/spilne-provedennya-finansovoyi-restrukturizaciyi-dlya-kilkoh-borzhnikiv-shcho-i-yak.html
  15. Pro vnesennia zmin do deiakykh zakonodavchykh aktiv Ukrainy shchodo vdoskonalennia systemy harantuvannia vkladiv fizychnykh osib ta vyvedennia neplatospromozhnykh bankiv z rynku (2019). Zakonoproiekt No. 2272 16.10.2019. Available at: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=67099
  16. Pro zatverdzhennia Polozhennia pro vyznachennia bankamy Ukrainy rozmiru kredytnoho ryzyku za aktyvnymy bankivskymy operatsiiamy (2016). Postanova Pravlinnia NBU No. 351 30.06.2016. Available at: https://zakon.rada.gov.ua/laws/show/v0351500-16
  17. Pro zatverdzhennia Polozhennia pro poriadok formuvannia ta vykorystannia bankamy Ukrainy rezerviv dlia vidshkoduvannia mozhlyvykh vtrat za aktyvnymy bankivskymy operatsiiamy (2012). Postanova Pravlinnia NBU No. 23 vid 25.01.2012. Available at: https://zakon.rada.gov.ua/laws/show/z0231-12

Downloads

Published

2021-02-28

How to Cite

Stadniychuk, R. (2021). Assessment of the current state of the use of non-monetary methods of state regulation of financial recovery of banks. Technology Audit and Production Reserves, 1(4(57), 54–58. https://doi.org/10.15587/2706-5448.2021.225700

Issue

Vol. 1 No. 4(57) (2021): Economics of enterprises. Macroeconomics

Section

Problems of Macroeconomics and Socio-Economic Development: Reports on Research Projects

License

Copyright (c) 2021 Роман Васильович Стаднійчук

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The consolidation and conditions for the transfer of copyright (identification of authorship) is carried out in the License Agreement. In particular, the authors reserve the right to the authorship of their manuscript and transfer the first publication of this work to the journal under the terms of the Creative Commons CC BY license. At the same time, they have the right to conclude on their own additional agreements concerning the non-exclusive distribution of the work in the form in which it was published by this journal, but provided that the link to the first publication of the article in this journal is preserved.