Modeling the dynamic patterns of banking and non-banking financial intermediaries’ performance
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Author(s)Alina BukhtiarovaLink to ORCID Index: https://orcid.org/0000-0003-2631-3323
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Andrii SemenogLink to ORCID Index: https://orcid.org/0000-0003-3222-9574
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Yevgeniya MordanLink to ORCID Index: https://orcid.org/0000-0002-3942-1262
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Viktoriia KremenLink to ORCID Index: https://orcid.org/0000-0002-5286-050X
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Yevgen BalatskyiLink to ORCID Index: https://orcid.org/0000-0001-7039-1009
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DOIhttp://dx.doi.org/10.21511/bbs.17(1).2022.05
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Article InfoVolume 17 2022, Issue #1, pp. 49-66
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Nowadays, there are many preconditions and circumstances for conducting shadow schemes in the financial market. Therefore, the level of risk of participation of bank and non-bank financial intermediaries in such schemes is assessed as high. The lack of a practical methodology for assessing the development trajectory of financial intermediaries raises the question of the need for preventive control and quality modeling of their growth dynamics. The study aims to identify and formalize the patterns of development paths of banking and non-banking financial intermediaries based on the Harrington desirability function, which will be used to identify risk patterns as indicative patterns of financial intermediaries’ participation in shadow schemes. The sample includes 13 banking institutions, 3 credit unions, 3 pawnshops, 3 insurance companies, and 3 financial companies. The obtained results showed the relationship between the financial intermediary risk level in terms of its participation in shadow schemes and the phases of the economic cycle as a catalyst for the economic dynamics of the formal and informal economy. Thus, in 2012–2015, most financial intermediaries were in the zone of most significant risk, especially banks, characterized by economic, social, and political instability. Today, banks are in the group with a controlled level of risk of participation in scheme operations. Over the years analyzed, a stable neutral level of risk of participation in shadow schemes was inherent in most non-bank financial institutions. They were less sensitive than banks to the phases of the economic cycle.
Acknowledgment
Alina Bukhtiarova and Yevgeniya Mordan gratefully acknowledge financial support from the Ministry of Education and Science of Ukraine (0120U100473, 0121U100469).
- Keywords
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JEL Classification (Paper profile tab)G17, G21, G23, O17
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References21
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Tables16
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Figures5
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- Figure 1. Kohonen maps obtained
- Figure 2. General Kohonen map
- Figure 3. New Kohonen map with conditional financial intermediaries
- Figure 4. Obtained Kohonen maps by groups of indicators, considering conditional financial intermediaries
- Figure A1. Development patterns of financial intermediaries’ trajectories
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- Table 1. List of financial intermediaries included in the model as of January 1, 2021
- Table 2. Description of input model variables
- Table 3. Description of intermediate model variables
- Table 4. Description of Pivdennyi Bank’s indicators as of January 1, 2021
- Table 5. Synthesis function G for each group of indicators as of January 1, 2021
- Table 6. Financial intermediaries included in pattern C1
- Table 7. Distribution of points for cluster evaluation
- Table 8. Cluster rank formation
- Table 9. Cluster rating
- Table 10. Assessment of financial intermediaries by groups within clusters
- Table 11. Cluster rank formation
- Table 12. Cluster ranking
- Table 13. Assessment of conditional financial intermediaries by new groups within clusters
- Table 14. Financial intermediaries of the newly formed pattern C7
- Table 15. Financial intermediaries of the newly formed pattern C5
- Table 16. A set of development patterns of financial intermediaries’ trajectories according to the probability of participation in shadow operations
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Manju Rajan Babu ,
Ashok Kumar M.
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.02
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 11-21 Views: 2670 Downloads: 355 TO CITE АНОТАЦІЯThe facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.
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ERP implementation in banks: success factors & impact on financial performance
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The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.
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Level of shadow economy in Ukraine: reasons and ways to overcome
Alina Bukhtiarova ,
Arsen Hayriyan ,
Nataliia Vynokurova
doi: http://dx.doi.org/10.21511/pmf.07(1).2018.01
Public and Municipal Finance Volume 7, 2018 Issue #1 pp. 6-11 Views: 1719 Downloads: 126 TO CITE АНОТАЦІЯThe article offers an investigation of the level of the shadow economy in Ukraine in the period 2007–2016, the structure of the shadow (“grey”) economy in the sectoral section, Ukraine’s place in world rankings in terms of economic freedom, corruption, favorable business conditions, and competitiveness. The main reasons of high level of shadow sector of the national economy are considered, and several measures regarding the reduction of the shadow economy in Ukraine and improvement of its economic situation are presented.
