FACTORS IN THE DEVELOPMENT OF BANKING CRISES: THEORETICAL AND MANAGEMENT ASPECT

Abstract

The study is based on the thesis that the functioning of the banking segment of the financial market always reacts sensitively to any changes in the external and internal environment. Since such changes are caused by various factors, they must be systematized in order to build an effective mechanism of anti-crisis management of banks. The article substantiates that such factors are formed at different levels and can cause destructive changes both in the work of an individual bank and become a threat to the functioning of the banking system. At the same time, banks' risk management systems are only part of the anti-crisis management of a banking institution. An important task is the formation of a certain mechanism of anti-crisis management of banking activities. Increasing the effectiveness of such a mechanism and its effectiveness is possible by taking into account the factors of banking crises and the levels of their deployment. For this purpose, the article researches modem author's approaches to the concept of "banking crisis". Their content characteristics are revealed, methodological differences in their interpretation are emphasized. It is determined that the factors or causes of the banking crisis are always closely intertwined, often overlapping each other, intensifying its negative consequences. In this aspect, it is determined that the factors of the banking crisis are formed at different levels of economic systems. It is advisable to consider them depending on the environment of formation - external or internal. External (exogenous) factors are, as a rule, responsible for the formation of macro- and meso-levels. Internal (endogenous) factors are caused by poorly managed banking business. These include: miscalculations in setting interest rates, unbalanced management of assets and liabilities, aggressive bank policy in the credit and deposit markets, non-compliance with regulatory requirements, etc. The key feature of the factors is that in practice they are combined, and therefore able to form unique vectors of influence - both on an individual bank and on the banking system. As a result of the combination of these factors, the banking crisis can unfold as a systemic phenomenon or as a crisis of the functioning of an individual institution. At the same time, the crisis is caused by a critical combination of risks that is poorly predictable. The development of anti-crisis management measures is impossible without taking into account crisis events in the bank's business model. It was also determined that innovative activity is of key importance for the development of anti-crisis management measures. It is the basis of increasing the bank's competitiveness, and therefore its market position.