Abstract
The main purpose of the research is to study changes in the methodology of formation and regulation of liquidity of commercial banks in Ukraine, as well as to study changes in the structure of bank assets that will result from the use of new approaches. For data collection, the following analysis methods were adopted: a semantic analysis of the traditional and new approach to determining the regulatory liquidity ratio, structural and dynamic analysis of assets and income of commercial banks, as well as a method of logical generalization in drawing conclusions about the analysis. The results of the research show that the introduction of new approaches to determining the liquidity of commercial banks on the basis of the Basel III agreement requires banking institutions to increase the general requirement for the principles of formation of their assets. There is also an objective need to develop new approaches to ensure the proper effectiveness of current liquidity control and ensure the stability of cash flows as well as an overall reduction in banking risks. Based on the analysis of the banking system of Ukraine, it is established that the introduction of the NSFR ratio instead of the regulatory ratio N6 provides for commercial banks a general reduction of the risk of banking operations and helps to expand sources of financing active operations. The study found that one of the key consequences of the introduction of the NSFR ratio in the activities of banking institutions in Ukraine will be a decrease in their net interest margin in lending operations. As a result, commercial banks will be forced to limit lending activities mainly by limiting the issuance of riskier loans. However, another consequence of the use of the NSFR standard will be the differentiation of active operations of banks, which will reduce the dependence of their operating activities purely on lending, which will also result in an overall increase in the financial stability of banking institutions.
Highlights
Introduction of NSFR Ratio in theActivities of Commercial Banks in UkraineMykola Dziamulych1, Tetiana Shmatkovska2,*, Mykhailo Krupka3, Lesya Yastrubetska3, Bohdana Vyshyvana3, Svitlana Derevianko4Received September 21, 2021; Revised October 25, 2021; Accepted November 29, 2021Cite This Paper in the following Citation Styles (a): [1] Mykola Dziamulych, Tetiana Shmatkovska, Mykhailo Krupka, Lesya Yastrubetska, Bohdana Vyshyvana, Svitlana Derevianko, "Introduction of NSFR Ratio in the Activities of Commercial Banks in Ukraine," Universal Journal of Accounting and Finance, Vol 9, No 6, pp. 1544-1550, 2021
Traditional approaches to the calculation of liquidity ratios of banking institutions are based on the application of standards of instant, current, and short-term liquidity
It is known that the provisions of the Basel Accord of 2010, which resulted from the revision of banking liquidity after the global financial crisis of 2008-2009, provided for the gradual introduction of new standards and approaches to the liquidity of commercial banks, which would strengthen and specify the requirements of the previous Basel II standard
Summary
Introduction of NSFR Ratio in theActivities of Commercial Banks in UkraineMykola Dziamulych, Tetiana Shmatkovska2,*, Mykhailo Krupka, Lesya Yastrubetska, Bohdana Vyshyvana, Svitlana Derevianko4Received September 21, 2021; Revised October 25, 2021; Accepted November 29, 2021Cite This Paper in the following Citation Styles (a): [1] Mykola Dziamulych, Tetiana Shmatkovska, Mykhailo Krupka, Lesya Yastrubetska, Bohdana Vyshyvana, Svitlana Derevianko , "Introduction of NSFR Ratio in the Activities of Commercial Banks in Ukraine," Universal Journal of Accounting and Finance, Vol 9, No 6, pp. 1544-1550, 2021. Received September 21, 2021; Revised October 25, 2021; Accepted November 29, 2021 Cite This Paper in the following Citation Styles (a): [1] Mykola Dziamulych, Tetiana Shmatkovska, Mykhailo Krupka, Lesya Yastrubetska, Bohdana Vyshyvana, Svitlana Derevianko , "Introduction of NSFR Ratio in the Activities of Commercial Banks in Ukraine," Universal Journal of Accounting and Finance, Vol 9, No 6, pp. (b): Mykola Dziamulych, Tetiana Shmatkovska, Mykhailo Krupka, Lesya Yastrubetska, Bohdana Vyshyvana, Svitlana Derevianko (2021). Introduction of NSFR Ratio in the Activities of Commercial Banks in Ukraine. On the one hand, there is a problem of proper daily response to the number of Universal Journal of Accounting and Finance 9(6): 1544-1550, 2021 available funds, depending on the specifics of active and passive operations, the speed of which has more than doubled over the past 5-7 years. If the LCR standard has been used in the practice of Ukrainian banks for several years, the NSFR ratio is new to them and the transition to its application requires a thorough study of all issues related to its implementation
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