Abstract

The evolving economy today is non-stationary in the nature of its character of behavior which becomes the reason of emergence of imbalances and instability of the market environment that cause the emergence of nonlinear processes in functioning of the banking system which may carry a threat to its development. Super fast tempos of change in the globalized world generate flows of institutional and innovative disturbances that test banks and banking systems for viability and encourage them to study the peculiarities of their behavior in terms of non-linearity and non-equilibrium. Knowledge and interpretation of synergetic properties of the banking system today have not only theoretical but also practical significance for development and implementation of the concept of self-organization of banks. The theoretical questions of mutual influence and interconnection of entropy and information on the processes of self-organization in the banking system are considered. The functioning of the banking system in an unstable environment with chaotic and orderly behavioral stages is characterized by a nonlinear dynamics of entropy, as well as a significant dependence on the influence of management information that enters the system. Saturation of the banking system with this information makes it possible to force out chaos from it, it increases its orderliness and effect of functioning. From the point of view of entropy and informational approach, the nature and conditions of self-organization in the banking system are disclosed. It was established, that fundamental condition for self-organization in the banking system is to transfer the system to a non-equilibrium state when it becomes quite sensitive to external disturbances. It is noted, that entropy represents a measure of disorder of the system, and its growth increases chaos and can lead to devastating consequences in the functioning of the system. The processes of self-organization in the banking system will only be possible if its order is growing.

Highlights

  • Today, it is generally acknowledged by the science, that the nature of behavior of economic systems is far from inviolable sequence of homogeneous states, since in its operation slow and fast stages, consolidation, formation and disintegration of structures are harmoniously combined

  • In non-equilibrium environments the loss of energy is compensated by its inflow from the outside, precisely because of this the process of self-organization of the system takes place

  • The order in the non-equilibrium system can be formed from chaos in which, as a result of scattering of energy, a dissipative structure appears which in turn is associated with a significant decrease in energy of the system and an increase in its entropy

Read more

Summary

Introduction

It is generally acknowledged by the science, that the nature of behavior of economic systems is far from inviolable sequence of homogeneous states, since in its operation slow and fast stages, consolidation, formation and disintegration of structures are harmoniously combined. There is a growing risk of increasing chaos, uncertainty and weakening of stability of functioning, worsening of competitiveness and increasing likelihood of bankruptcy of banks. Under such conditions the development of the banking system is increasingly gaining signs of nonlinearity with characteristic sudden changes of vectors, slow and fast phases of movement

Objectives
Methods
Results
Conclusion
Full Text
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

Schedule a call