Abstract

The development of the economy directly depends on the state of the banking system, financing and servicing of enterprises by banking institutions. A prerequisite for this is to ensure a stable financial position of banks, which is the main task of both their owners and the regulator of the banking sector. In transition economies with poorly developed financial markets, in most cases, banks are the only institutions that form the necessary information for financial intermediation, provide diversification of financial resources, reduce the level of risk of financial activity, and promote the implementation of leading standards of corporate governance. Even in economically developed countries, banks remain centers of financial and economic activity, while taking a special place among financial institutions as instruments of making credit investments, creating savings and ensuring payments. In addition, stability is extremely important given the functions of financial intermediation, the provision of cash flow, customer satisfaction in financial services, the efficient allocation of credit resources and the maintenance of financial discipline among borrowers. In transition economies with poorly developed financial markets, in most cases, banks are the only institutions that form the necessary information for financial intermediation, provide diversification of financial resources, reduce the level of risk of financial activity, and promote the implementation of leading standards of corporate governance. Even in economically developed countries, banks remain centers of financial and economic activity, while taking a special place among financial institutions as instruments of making credit investments, creating savings and ensuring payments. In the article, the directions of improvement of the mechanism of state regulation of anti-crisis management by the economic security of banking institutions of Ukraine are systematized by systematizing the main measures, which are united in the main directions, in particular such as: the period of implementation; by the entities that implement them; on the mechanisms of implementation; by types of banking activity.

Highlights

  • The biggest problems of the last world crisis have caused the banking sector to be incapacitated to withstand its challenges, to adapt mobile to constant changes in the market environment, through the problem of «bad» assets banks have suffered significant losses

  • The implementation of specific anti-crisis measures at the level of an individual banking institution using the tools available to management and bank shareholders should be considered during analysis of the functional component of the crisis management of the banking institution

  • Modern market realities put banks’ requirements on stability, competitiveness, ability to integrate into the world of space

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Summary

Introduction

The biggest problems of the last world crisis have caused the banking sector to be incapacitated to withstand its challenges, to adapt mobile to constant changes in the market environment, through the problem of «bad» assets banks have suffered significant losses. The implementation of specific anti-crisis measures at the level of an individual banking institution using the tools available to management and bank shareholders should be considered during analysis of the functional component of the crisis management of the banking institution. Such a component of crisis management is characterized by the use of analytical tools for forecasting and planning (stress-testing of major risks, plans for crisis management); organizational and managerial tools (cost optimization, outsourcing certain types of activities). The economic mechanism of crisis management should be an integral part of the management of the bank, and consist of three subsystems: security subsystem, functional and control subsystem problem assets. The third is a subsystem of accounting, valuation, financial healing and overcoming other problems

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