The overall efficiency of the major banks in the global financial instability

  • Published December 9, 2016
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    Volume 11 2016, Issue #4, pp. 61-70
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    1 articles

The urgency of the issue is due to the change of major banks functioning conditions in accordance with permanent risks, that global financial instability bears, fiscal and monetary regulation enforcement on national financial markets and from the side of supernational institutions of global financial market regulation. The aim of the paper is the research of overall efficiency of the major banks in the global financial instability. The comparative analysis of overall and individual meanings of bank products and services (earnings) sales values, net profit, assets volume, market value of major banks in researched years gave the possibility to find the tendencies of banks development taking into account global financial instability influence and institutional and regulatory foundations of national governments implementation, Financial stability council (created in Ukraine) and Basel Committee on Banking Supervision. The conditions of major global banks functioning are changing under the influence of financial supervision and institutional and regulatory requirements enforcement to banks activity financial parameters. Other factor that provokes global banks towards activity strategy change is the growth of competition both in bank sphere and non-banking institutions in connection to possibilities provided by financial innovations. The directions of further researches lie in global banking effectiveness finding in a whole from the point of view of not separate banks, or group of banks, but global banking system, which, to our mind, has already been formed.

Keywords: global financial instability, effectiveness, major banks, global banking, bank efficiency.
JEL Classification: F33, Е58, G21

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