scholarly journals MINIMIZATION OF THE NEGATIVE CONSEQUENCES FROM THE IMPLEMENTATION OF CREDIT RISKS IN THE NATIONAL BANKING SECTOR

2021 ◽  
pp. 23-28
Author(s):  
A.V. Klek
Keyword(s):  
Banking Sector ◽  
Negative Consequences ◽  
Credit Risks

Statistical Models for Operational Risk

2011 ◽  
pp. 1848-1853
Author(s):  
Concetto Elvio Bonafede
Keyword(s):  
Statistical Models ◽  
Banking Sector ◽  
Financial Risks ◽  
Bank Capital ◽  
Basel Committee ◽  
Operational Risks ◽  
Credit Risks ◽  
New Basel Capital Accord ◽  
Bank Capital Requirement ◽  
Principal Elements

A statistical model is a possible representation (not necessarily complex) of a situation of the real world. Models are useful to give a good knowledge of the principal elements of the examined situation and so to make previsions or to control such a situation. In the banking sector, models, techniques and regulations have been developed for evaluating Market and Credit risks, for linking together risks, capital and profit opportunity. The regulations and vigilance standards on the capital have been developed from the Basel Committee founded at the end of 1974 by the G10. The standards for the capital’s measurement system were defined in 1988 with the “Capital Accord” (BIS, 1988); nowadays, it is supported from over 150 countries around the world. In January 2001 the Basel Committee published the document “The New Basel Capital Accord” (BIS, 2001), which is a consultative document to define the new regulation for the bank capital requirement. Such a document has been revisited many times (see BIS, 2005). With the new accord there is the necessity of appraising and managing, beyond the financial risks, also the category of the operational risks (OR) already responsible of losses and bankruptcies (Cruz (Ed.), 2004; Alexander (Ed.), 2003; Cruz, 2002).

Credit risk management of Ghanaian listed banks

2016 ◽  
Vol 58 (2) ◽  
pp. 162-178 ◽  
Author(s):  
Michelle Ayog-Nying Apanga ◽  
Kingsley Opoku Appiah ◽  
Joseph Arthur
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Banking Sector ◽  
Banking Industry ◽  
Credit Risk Management ◽  
Structured Interviews ◽  
Content Type ◽  
Credit Risks ◽  
Commercial Loans

Purpose – The study aims to assess credit risk management practices within financial institutions in Ghana. Specifically, the study compares credit risk management practices of listed banks in Ghana with Basel II (1999). Design/methodology/approach – The analysis is based on data gathered from varied sources, namely, use of questionnaires, analysis of internal credit policies and procedure manuals and semi-structured interviews and discussions with credit risk managers of the selected banks in May 2007 and October 2014. Findings – Overall, the credit risk management practices within listed banks in Ghana are in line with sound practices. The only dissimilarity, however, is the role of the board of directors in defining acceptable types of loans and maximum maturities for the various types of loans. The listed banks in Ghana are also exposed to credit risks associated with granting both corporate and small business commercial loans and the use of collaterals to mitigate their credit risk exposures. Practical implications – Banks in Ghana should consider developing the skills of all their personnel and appropriately motivating those involved in the credit risk management processes to ensure that they carry out this process efficiently. Originality/value – Research into credit risk management in the banking industry from the Ghanaian perspective remains scant. This study is, therefore, timely, and its findings are invaluable for the efficient management of credit risk in the banking industry. This study provides policy recommendations which will enhance shareholder value and, in this way, contribute to greater stability in the banking sector in developing countries, in particular.

scholarly journals Current state of digital transformation of russian banks

2020 ◽  
pp. 131-137
Author(s):  
S. S. Matveevskii
Keyword(s):  
Information Systems ◽  
Financial Stability ◽  
Banking Sector ◽  
Digital Transformation ◽  
Negative Consequences ◽  
Banking Services ◽  
Current State ◽  
Close Cooperation ◽  
Small Banks

The paper presents current state of digital transformation of Russian banks. The author defines the digitalization of banks as the introduction of FinTech technologies, close cooperation with Fintech-companies. Digitalization has both positive and negative consequences: cyber risks are growing, financial stability is decreasing. The analysis allowed the author to draw conclusions that the digital transformation of Russian banks is characterized by: the complex implementation of BCBS scenarios and the interaction between banks and Fintechcompanies, the emergence of neo-banks; increased competition in the banking sector; innovative opportunities for the production and sale of banking services and products, the emergence of new risks; accumulation and use of large amounts of data; the need to significantly change the information systems of banks (growth in demand for the services of IT companies); the emergence of ecosystems in which non-banking organizations are actively involved; large costs of Russian banks, which, as a rule, leads to an improvement in their financial results (as a result, medium and small banks begin to lose in the market).

Challenges to the Moroccan economy during the pandemic

2021 ◽  
pp. 62
Author(s):  
Maria I. Makhmutova
Keyword(s):  
Banking Sector ◽  
Domestic Market ◽  
Negative Consequences ◽  
Health Crisis ◽  
Tax Deductions ◽  
Foreign Loans ◽  
Automotive Production ◽  
The Government ◽  
Medium Businesses ◽  
The Impact

The article examines the impact of the COVID-19 pandemic on the Moroccan economy, as well as the measures that have been taken by the kingdom's authorities to counter the negative consequences. It is noted that initially, all forecasts shortly before the health crisis concerning Rabat were not objective, since they could not take into account future changes in the world. Thus, Morocco counted on dynamic development in 2020. However, the sudden wave of the pandemic has made a dramatic difference. Important sectors of the economy have been disrupted as global trade chains have been affected. Moreover, Morocco's dependence on foreign capital also demonstrated the fragility of the domestic market. In particular, the kingdom faced an investment freeze and a reduction in foreign exchange remittances by representatives of the Moroccan diaspora abroad. The tourism sector suffered the most, negative shifts were noted in the automotive production, as well as fluctuations affected the country's banking sector, which is dependent on French partners. To neutralize such a strong blow to the Moroccan economy, the government took the path of increasing foreign loans, which led to an increase in debt to 80% of GDP in 2021. To mitigate challenges in the domestic market, Rabat began to develop a number of programs to help the private sector. They affected micro, small and medium businesses. By introducing them, the government expects that by issuing concessional loans, it will be able to achieve a quick revival of small enterprises. In turn, this will reduce unemployment and, possibly, resume the previous volume of tax deductions.

scholarly journals Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward

2019 ◽  
Vol 44 (4) ◽  
pp. 198-210
Author(s):  
Sudha Narayanan ◽  
Nirupam Mehrotra
Keyword(s):  
Financial Distress ◽  
Large Scale ◽  
Banking Sector ◽  
Banking System ◽  
Well Being ◽  
Policy Instrument ◽  
Negative Consequences ◽  
Executive Summary ◽  
Long Run ◽  
Macroeconomic Implications

Executive Summary In the past decade, farm loan waivers have become a policy instrument to alleviate the financial distress of farmers. Despite agreement on the theoretical rationale for such debt forgiveness and its deep contextual relevance, many fear that in the long run, loan waivers might vitiate the repayment culture in the farm sector and undermine the financial status of banks. At present, critiques of large-scale loan waivers rest on limited evidence. This article reviews and synthesizes existing research and available data on the implications of loan waivers, especially for the flow of credit to farmers from banks. On most of the issues, such as farmer well-being and repayment culture, there seems to be mixed evidence on the consequences of debt waivers. Credible evidence on macroeconomic implications is limited, mainly on account of methodological challenges. This article concludes that even if loan waivers are an inappropriate strategy to support farm incomes in sustainable ways, the wide-ranging negative impacts on the formal banking sector are perhaps overstated. A more fruitful approach would be to focus on whether loan waivers can be designed to reduce the possible negative consequences for the formal banking system as well as for macroeconomic system. The article identifies three possible instruments—loan insurance products that will help banks cope with the consequences of large-scale defaults. Second, to explore the creation of a distress fund that will cushion state finances, should there be a need for debt waivers. Third, it would be useful to consider the operation of debt relief commissions to have an ongoing process for debt waivers.

scholarly journals Troubles with the Chf Loans in Croatia: The Story of a Case Still Waiting to Be Closed

2021 ◽  
Vol 14 (2) ◽  
pp. 75
Author(s):  
Ana Kundid Novokmet
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Consumer Protection ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Supply And Demand ◽  
Holistic Approach ◽  
Negative Consequences ◽  
Credit Boom

In numerous Central and Eastern European (CEE) countries, the global financial crisis as well as the unpegging of the foreign exchange rate of the Swiss franc (CHF) against the euro amplified the repayment troubles of households with the outstanding CHF-linked debt. In Croatia, the CHF loans were approved mainly as mortgages to unprotected and subprime household borrowers without sufficient credit capacity for long-term euro-linked loans, which also contained a possibility of an incremental interest rate change, i.e., the so-called administrative interest rate. This article aims to disclose the reasons behind the credit boom of these loans, the unsustainable CHF debt hardship that the household sector consequently faced, and how it was/could have been resolved, with the Croatian banking sector at the center of the research. Although the CHF case of Croatia has some specificities concerning the prudential regulation and government-sponsored loan conversion, the findings about the supply and demand determinants of the CHF credit boom, as well as a critical assessment of the Croatian government and central bank interventions, might be useful for timely noticing universal threats from the exotic currency-linked loans for the systemic risk and financial stability, and for minimizing the negative externalities from probable debt relief measures. Based on the descriptive and univariate statistics conducted on Bloomberg and the Croatian National Bank (CNB) data, it was found that interest rate differentials and carry trading behavior were the main reasons for the rapid CHF credit growth in Croatia. Nevertheless, according to the financial experts’ opinions obtained via a questionnaire survey, and the court verdicts reached since, the financial consumer protection when contracting these loans was severely violated, which implies that the central bank must enhance its consumer protection role. By adopting a single-country and holistic approach, this is the first paper that deals with the socioeconomic dynamic of the CHF credit default issues in Croatia, which might be interesting as a case study or for making comparison with other CEE countries that have been coping with negative consequences of Swiss francization.

scholarly journals ASSESSING THE IMPACT OF BLOCKCHAIN TECHNOLOGIES ON CREDIT RISKS IN THE BANKING SECTOR OF THE RUSSIAN FEDERATION

2020 ◽  
Vol 6 (2) ◽  
pp. 148-167
Author(s):  
Marat R. SAFIULLIN ◽  
Leonid A. ELSHIN ◽  
Aliya A. ABDUKAEVA
Keyword(s):  
Data Storage ◽  
Russian Federation ◽  
National Economy ◽  
Banking Sector ◽  
Economic Effects ◽  
Theoretical Understanding ◽  
Credit Risks ◽  
The Subject ◽  
The Russian Federation ◽  
The Impact

Despite the very high interest on the part of international and national financial institutions, enterprises of the real sector of the economy in distributed data storage technologies, studies on the problems of assessing the use of the potential of blockchain platforms in the socioeconomic environment, their theoretical understanding can be met not so often. Existing works, as a rule, reveal either the technical side of the object of study, or the regulatory aspects of the applicability of blockchain technologies in the national economy. In this regard, in order to fill in questions revealing other aspects of the subject of the study, for example, such as an empirical assessment of the economic and social effects of the introduction of blockchain technologies in the activities of business entities, an attempt is made in this paper to overcome this conditional vacuum. The banking sector of the national economy of the Russian Federation was chosen as the object of research. The subject of the study is the relationship built between participants in the financial market on the basis of blockchain technologies, and the resulting effects expressed in the potential to reduce credit risks of banks due to non-fulfillment, untimely or incomplete fulfillment of financial obligations by debtors. In the course of the study, the main directions that reduce the risks under consideration, as a result of minimizing opportunistic models of behavior, are substantiated, possible economic effects for the Russian banking system as a result of the use of blockchain technologies are identified. The most important result of the work is the developed algorithm for determining the parameters for reducing the reserved capital for credit risks as a result of the penetration of blockchain technologies into the banking environment.

scholarly journals CONTEMPORARY INTERNATIONAL AND NATIONAL REGULATORY INSTRUMENTS OF CREDIT RISKS ABATEMENT AND THEIR IMPLEMENTATION IN UKRAINIAN BANKING SECTOR

2017 ◽  
pp. 95-106
Author(s):  
V. Yakubovsky
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
National Level ◽  
Financial Sector ◽  
The European Union ◽  
Regulatory Requirements ◽  
Credit Risks ◽  
Regulatory Instruments ◽  
National Bank ◽  
New Generation

Contemporary regulatory requirements and mechanisms which oriented to credit risks abatement and assurance of financial sector functioning abroad are reviewed with particulars of their implementation in national banking sector. As is demonstrated general reasons for new generation of regulatory measures of crisis resilience in financial sector are growned up from last global economy crisis which demonstrated vulnarability of main credit institutions and their failure to absorb considerable financial market fluctuations. To improve financial systems stability is the main goal of measures and instruments proposed by the international Basel committee on banking supervision as well as Directives and Regulations of the European Union, which should be implemented at the national level. Based on that last regulatory documents in this direction issued by national bank of Ukraine which are based on main international documents mentioned above are reviewed. In a generalised form statistical information on valuation and monitoring of most commonly used for collateral purposes types of assets is presented and discussed. Analyzed are main difficulties faced by valuers during providing practical activity in this field.

scholarly journals CREDIT RISKS MITIGATION AND BANKING COLLATERAL VALUATION IN UKRAINE

2020 ◽  
pp. 109-115
Author(s):  
V. Yakubovsky
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
National Level ◽  
Financial Sector ◽  
The European Union ◽  
Regulatory Documents ◽  
Credit Risks ◽  
National Bank ◽  
Risks Assessment ◽  
New Generation

Contemporary international requirements and mechanisms which are oriented to credit risks abatement and assurance of financial sector functioning are reviewed with particulars of their implementation in national banking sector. As is demonstrated general reasons for the new generation of regulatory measures of crisis resilience in financial sector are grown up from the last global economy crisis which demonstrated vulnerability of the main credit institutions and their failure to absorb considerable financial market fluctuations. To improve financial systems stability is the main goal of measures and instruments proposed by the international Basel Committee on Banking Supervision as well as Directives and Regulations of the European Union, which should be implemented at the national level. One of the underlining aspect in this new international regulatory documents is recognition of the assets valuation key role in the whole methodology of risks mitigation. Main approaches to consider time effect on assets valuation results are analyzed in this context. Based on these last international regulatory documents in this direction special Resolution No. 351of the National Bank of Ukraine has been issued for banks credit risks assessment. Much less attention in this Resolution is given to assets valuation which is linked to some extent with outdated national valuation standards. This situation requires active measures to be provided for updating basic national documents in this area as is underlined.

scholarly journals Impact of Exploitative Leadership on Workplace Incivility: Role of Psychological Distress -Evidence from Banking Sector

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Aamir Saif Kiyani ◽  
Mesut Atasever ◽  
Tahir Hussain Rizvi
Keyword(s):  
Psychological Distress ◽  
Boundary Conditions ◽  
Banking Sector ◽  
Workplace Incivility ◽  
Negative Consequences ◽  
Destructive Leadership ◽  
Sector Employee ◽  
The Relationship ◽  
Quantitative Nature

  Aim: The present study investigated the effect of exploitative leadership on workplace incivility banking Sector employee with the role of psychological stress as a moderator Background: Destructive leadership, the mostly exploitative leadership, had been less thoughtful earlier in banking research. Additionally, fundamental mechanisms and boundary conditions that occur between exploitative leadership and employee outcomes such as workplace incivility were also missing in the banking literature with the context of psychological distress. Methods: This present research quantitative nature in which data had collected from the banking Sector (N = 310) working in the Pakistani banking sector through self-administrative questionnaires. Results: psychological distress moderate the relationship between exploitative leadership and workplace incivility among banking sector employees when psychological distress was high. Conclusions: Exploitative leadership had a significant impact on outcomes in the form of workplace incivility and psychological distress significantly moderating between exploitative leadership and workplace incivility when psychological distress was high at the banking sector in Pakistan Implications for Banking Sector Management: It is among the pioneer studies to unveil the exploitative side of leadership and its negative consequences for banking sector employees. Psychological distress in the banking sector can be reduced by discouraging leader exploitative behavior. Banking can utilize workplace incivility from work as a tool to reduce destructive outcomes of leader exploitative behavior.

Sign in / Sign up

Export Citation Format

Share Document