Abstract
In the research, bank patterns analysis is held on the basis of Kohonen self-organizing maps with the aim to determine further directions of bank strategies development under the influence of crisis events in Ukraine’s economy. For model practical approval, the sample of 32 banks was formed, which presents four groups of banks according to the classification determined by the National Bank of Ukraine. While constructing model, 15 indexes were used that characterize bank’s functioning efficiency. As a result of research, cluster ranking was constructed, the groups (powerful banks, stable, problem banks and banks that are in the crisis state and bankrupt state) were formed and the trajectory of bank evolution as a patterns unity, each of which characterizes the activity of bank on a definite moment of time. It gives possibility for the government regulation authority – central bank to take decisions according to the appropriateness use of regulation instruments of separate bank with the aim of saving stable banking system state in a whole, and for the clients – to evaluate bank’s reliability. Keywords: banks, banking system, economic modeling, Harrington desirability function, cluster analysis, self-organizing map, pattern of bank. JEL Classifications: G17, G21, G33
Highlights
World financial system goes on to overcome from the outcomes of 2008 crisis, but the substantial restoration of economic development temps are not observed, as it was admitted in the 2016 World Economic Outlook by the International monetary Fund - Too Slow for Too Long
The research of pattern dynamics and their time characteristics is the instrument of bank evolution evaluation and possibility to forecast separate indexes of bank development in future
Evaluation of bank pattern dynamics is executed on the basis of use of Kohonen self-organized maps, which execute visualization and clusterization tasks
Summary
World financial system goes on to overcome from the outcomes of 2008 crisis, but the substantial restoration of economic development temps are not observed, as it was admitted in the 2016 World Economic Outlook by the International monetary Fund - Too Slow for Too Long. The occurrence of banking crises in different countries is the outcomes of disbalanced banking systems and insufficient banking regulation and supervision, excessive derivatives use, detachment of financial sector of economy from the real sector needs. Evaluation of separate bank patterns and their positioning in the system permits to determine more clearly the state of banking system and take decisions in terms of appropriateness of regulation instruments use of separate bank with the aim of keeping stable state of banking system as a whole. This problem is acute for a great number of countries with bank-based market model. A., Hu H. (2002); local problems that appeared in the banking
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have