Corporate Banking Research Articles

The ECB Guide to Internal Liquidity Adequacy: A Principles-Based Approach

The global financial crisis exposed the need for coherence and transparency in bank liquidity management. The problem of asymmetry of information associated with liquidity was particularly acute during the crisis, leading to both adverse selection and moral hazard problems. The inability to refinance in the market eventually required central banks and states to intervene to purchase assets or provide guarantees at the market level and supply public funds, or nationalize individual banks, to correct the market. The European Central Bank Guide to Internal Liquidity Adequacy places significant focus on management’s oversight and responsibilities in addressing these issues before they materialize, or the existence of contingency plans to manage materialized risks. This guide is simply one component of a complex web of supervisory instruments and tools for banks’ liquidity management. This chapter argues that the crisis prevention narrative is delegated to banks to discharge their obligations in bank supervision so as to minimize the asymmetry of information problems created by their business and improve the way they manage adverse scenarios and the risks to depositors, markets, and supervisory authorities. The first part explains the rationale for a principles-based approach; the second part explores the premise of the principles for liquidity management, namely the responsibility of the bank per se to discharge adequate liquidity management as a form of self-regulation; the third part explains some of the key features of the principles; and the fourth part looks at the features of the principles with specific reference to the crisis prevention measures to improve banks’ responses to liquidity risks. This ‘nuts and bolts’ approach surprisingly lacks reference to bank corporate culture as an important all-encompassing matter when it comes to banks and risk-taking. The final section reflects on these preventive elements and highlights the importance of the ECB combining a risk-based and forward-looking ‘judgement’ based approach to supervision.

HOW DO THE ECB MEETINGS AFFECT THE STOCK VALUATIONS OF FOUR IBEX35 BANKS?

Purpose: Analyze the data and draw there were any relevant conclusions between the meetings of the central bank and the movements of the banking corporations in the stock market.
 Methodology: To carry out this study, it was necessary to obtain two extremely important data sets (exact dates of the ECB meetings, stock market valuations of the four banking entities understudy). Both were obtained by searching on specialized websites. Then a comparison of the variations, a correlation table, which will allow us to mathematically affirm whether there is a linear relationship and proportionality between the variations of the banks or not, were analyzed.
 Main Findings: The results obtained indicate that such influence on the part of the European Central Bank on the financial entities listed on the IBEX35 does not exist, since the variations between bank shares are random and maybe would be better explained by other hypotheses or inputs.
 Application of Study: This work discards the hypothesis proposed by the student, although it manages to find other interesting relationships between banks because of the correlation analysis carried out in the analysis part of the work.
 Novelty/Originality: Establish the relationship between the meetings of the central bank and the movements of the banking corporations in the stock market.

EFFECT OF ETHICAL CODES ON CUSTOMER SERVICE DELIVERY OF SELECTED QUOTED DEPOSIT MONEY BANKS IN LAGOS STATE, NIGERIA

This study examined the effect of ethicalcodes on customer service delivery of selected quoted deposit money banks in Lagos state, Nigeria. Cross-sectional survey research design was adopted in the study. The population was 38,003 staff and 17,780 corporate customers of eight selected deposit money banks in Lagos State, Nigeria. A sample size of 494 for banks staff and 494 customers were determined using Cochrans formula. Stratified proportionate sampling technique was adopted in the study. Data were collected using a structured and validated questionnaire. Cronbachs Alpha coefficients for ethical code was 0.759 and for customer service delivery 0.762. The response rate for bank staff and corporate customer were 88% and 89% respectively. Data collected were analyzed using descriptive and inferential (linear regression) statistics. The finding revealed that ethical code had no significant effect on customer service delivery of selected quoted deposit money banks in Lagos state, Nigeria (β = 0.031, t = 0.462, p>0.05). It was recommended that Chartered Institute ofBankers of Nigeria should re-awake and promote Professional Code of Ethics in the Nigerian Banking Industry.

Digital transformation of russian economy: challenging the highest rank in the global innovation development

A simple prognostic method was applied to estimate the percentage ratio of the digital economy in Russia’s GDP relying on technology solutions expenditure and sectoral investment. The research indicates a significant impact of Russia’s digital sector on innovation development in B2B, B2G, and B2C segments. The prognostic analysis shows the extension of on-line education, social networking, e-commerce, private and corporate banking, and end-to-end technology solutions in manufacturing. The findings point at the opportunity for the sectoral investment extension and steady annual growth 7-8 % in the next few years. Due to requirements on updating the technological solutions in the related public services, the digital sphere can support the annual growth in the national economy by 1,0-1,2 % until 2024. Respectively the digital economy in Russia will be growing faster the world's average to provide the sector’s contribution of 8,0-8,1 % in GDP by 2024. The findings show the digital platforms are becoming a driver for innovation development integrating the production process, cloud resources, data analysis, and e-learning services. The research contains hints on improving the research efficiency and winning the talent battle that promises to improve the country’s global innovation and economic ranks.

The Corporate Governance Models for Banks: A Comparative Study

Abstract An effective corporate governance system is vital in modern-day economics and firms. It can help to specify the distribution of roles, responsibilities, and resources among various stakeholders of an organization or society. The enhanced role of the banks in various economic systems demands a higher level of corporate bank governance for a stable and sustainable financial system. In this paper; four major corporate governance models of banks are compared and the financial outcomes of each model are analyzed to assess their alignment with expectations of an effective corporate governance system. The Continental corporate governance model found to be closer to the expectations of an effective corporate governance system compared to the Anglo- Saxon, Chinese, and Islamic banking. Banks under the Continental model charge lower margin to its customers, use bank resources more efficiently and create relative balance in the distribution of resources among all stakeholders compared to the other three models. Banks under the Anglo- Saxon model are charging higher margin to its customer, Chinese banks are under-utilizing the banks’ resources, and Islamic banks are more favoring their shareholders and are riskier among banks of all selected models. Higher involvement of the more stakeholders in the decision-making process of the banks is key to effective corporate governance and sustainable banking system. Reforms in all corporate governance models are recommended while keeping in mind the prior research on corporate governance especially the Sir Adrian Cadbury report.

Collateral sufficiency as an adapt financial covenant in bank crediting

Subject. The article examines the Loan-to-Value ratio in three dimensions. First, as a measure of leverage, helpful to understand the spread of systemic risk in the economy. Second, we identify LTV throughout financial covenants. Finally, we implement LTV to indicate the probability of default. Objectives. The goal of the paper is to study the impact of collateral sufficiency on credit risk throughout adjusted financial covenants for bank corporate loans. Methods. To conduct the research, the authors implement econometric methods, linear regressions and binary models. Results. We have revealed the prevalence of the posterior theory of the impact of the collateral sufficiency on the credit risk evaluation by corporate loans. We have also revealed that the higher credit risks, the higher collateral requirements to pledge the loans. Conclusions and Relevance. We have considered a new approach to identify collateral requirements, throughout LTV measures, as adjusted financial covenants on the Russian market. Lender’s preferences are being stronger at the time of downturns in economic activity. At the same time, economic growth neutralizes any visible behavioral favors/patterns. Hereby psychological risk components are quite essential, and need studying in modern banking.

Impact of the new digital competitors on Swiss banking business models

This study examines the impact of new digital-only competitors on the Swiss banking business models and value chain. Despite various studies and articles available in the literature about the impact of new digital competitors on the banking industry, there is little research focusing on the Swiss market. The comprehensive research conducted in this study and the data collected through the survey provides a foundation to gauge the impact of the new digital competitors’ pressure on business models and value chain in the Swiss banking industry. The design of the research instrument employed for collecting the primary data has been achieved through a survey shared with 75 managers and experts working in the Swiss banking industry including Swiss banks, FinTechs, BigTechs, and other financial services and consultancy firms. One sample z-test and descriptive statistics have been applied to the survey results to gain a deeper understanding. The outcome of the analysis suggests that the competitive pressure of BigTechs and FinTechs is expected to have a significant impact on the Swiss banking industry, and mainly BigTechs are anticipated to be significantly dominant with disruptive impact. The obtained results also strongly indicate that the cross-industry ecosystems and close partnerships with the new digital competitors are the potential key strategies to be pursued as the future Swiss banking business models. Besides, the disruptive new market entrants are anticipated to be highly likely to gain significant market share in certain market segments of the banking industry and also to create an “ecosystem” accordingly. The area of Personal and Corporate Banking is found out to be more vulnerable to digital disruption in comparison with the other banking areas.

MACROECONOMIC FACTORS, CORRUPTION, NPAS IN 4 PUBLIC SECTOR BANKS: A CROSS STUDY

Banks play a vital role in economic development and growth of a country. A sound and healthy financial institution ensures overall stability of the system. Commercial and cooperative banks together constitute the Indian Banking System. Commercial Banks account for more than 90% of the banking sector’s assets. The public sector banks account for a substantial part of the banking activity in India. The growth in banking sector has been burdened and hindered by increasing non-performing assets. In this paper, we aim to understand the influence of macroeconomic factors such as GDP per capita, Real Interest rates and inflation along with some bank factors such as bank size, diversification of assets and priority sector lending on NPAs of four PSBs - Punjab National Bank, Andhra Bank, Corporation Bank and Indian Bank. This paper also aims to understand whether corruption could be a determinant for NPAs in these banks.

Traditional and Perspective Methods of Corporate Non-Performing Loans Rejustment (Liquidation)

Article covers issues of banks’ corporate non-performing and overdue loans management (liquidation). Authors make revision of methods that banks usually use for current goal solution and develop concepts of approaches to non-performing loans management that could become out the perspective alternative for traditional methods. Scientific novelty of the manuscript is in developing the methods (modifications of methods) of bank corporate nonperforming loans rejustment (liquidation). The principle of the first method is in changing conditions of corporate debt repayment - the new conditions must be determined by financial possibilities of the borrower. The main idea of the second one is in non-performing or overdue debt sell on the quasiequivalent terms. At that article set the modification of the second method, based on the idea of the expansion of the list of types of securities used for nonperforming loans exchange deals and provides with the substantiation of the author's position. In addition, the manuscript presents algorithms of mentioned perspective methods implementation. Article is based on the studies of leading Russian economists in the field of national economic system growth, banking, corporate non-performing loans management.

What Best Predicts Corporate Bank Loan Defaults? An Analysis of Three Different Variable Domains

This paper aims to compare the accuracy of financial ratios, tax arrears and annual report submission delays for the prediction of bank loan defaults. To achieve this, 12 variables from these three domains are used, while the study applies a longitudinal whole-population dataset from an Estonian commercial bank with 12,901 observations of defaulted and non-defaulted firms. The analysis is performed using statistical (logistic regression) and machine learning (neural networks) methods. Out of the three domains used, tax arrears show high prediction capabilities for bank loan defaults, while financial ratios and reporting delays are individually not useful for that purpose. The best default prediction accuracies were 83.5% with tax arrears only and 89.1% with all variables combined. The study contributes to the extant literature by enhancing the bank loan default prediction accuracy with the introduction of novel variables based on tax arrears, and also by indicating the pecking order of satisfying creditors’ claims in the firm failure process.

IMPLEMENTASI ANGGARAN CSR PADA BANK SYARIAH

This study aims to determine how much the budget and form of CSR implementation at Bank Syariah Mandiri for the community and the surrounding environment. This study uses a method with a descriptive approach. The case study method is an empirical inquiry that investigates phenomena in the context of real life, where the boundaries between phenomena and contexts are not clearly visible. Case studies are limited to quantitative evidence. The data used in this study are secondary data on the Budget Realization Report and CSR implementation in 2012-2015. The data is a documentation of the Annual Report on Budget Realization and the implementation of BSM Bank CSR 2012-2015. The analysis technique used in this research is quantitative descriptive method. Descriptive refers to the transformation of raw data into a form that will make it easier for readers to understand and interpret the meaning of the data or numbers displayed. The steps taken in analyzing this data include: 1. Calculating the implementation of Bank Syariah Mandiri's 2012-2015 CSR budget by distributing a maximum of 2% of profit after tax. 2. calculate the ratio of realization of BSM's CSR budget since 2012-2015. 3. Describe the data from the calculation of the budget implementation ratio. From this research, it is found that the Bank distributes zakat funds for companies, employees, customers, and the general public to those who are entitled by synergizing with LAZNAS BSM through an efficient and beneficial program for the community. This CSR activity will provide added value and positive value to society both as customers and the general public. In another position, the Bank's Corporate Image will get better so that this will increase public confidence in the existence of BSM and also all of the Bank's business products.

MEANS OF PRIVATE INVESTMENT OF SMALL AND MEDIUM INNOVATION ENTREPRENEURSHIP IN THE EUROPEAN UNION

The authors of the article have analyzed certain economic characteristics of private investment of small and medium-sized innovative enterprises in the European Union (hereinafter — the EU). It has been noted that, unlike public funding from the EU Member States and Structural Funds investment, it is appropriate to pay attention to the investment mechanisms used in the private sector to support small and medium-sized innovative entrepreneurship in the EU, which has its own specificity and sources. The features of such sources as bank lending, corporate and venture investing, as well as financing provided by business angels have been studied. It has been noted that bank loans for innovative enterprises in the EU have become more accessible, but the collateral requirements imposed by banks remain high. The reasons for the low level of corporate investment of innovative small and medium-sized enterprises (hereinafter — SMSEs) in some Member States are the lack of a developed culture of partial investment and the specificity of information exchange between companies and investors. The level of venture capital usage is low and, as a consequence, only a small number of SMSEs are attractive to venture capitalists’ investments. On the other hand, business angels are quite selective about investment objects. This determines their main activity at the stage of initial implementation of innovative projects.
 It has been concluded that a large proportion of SMEs face serious problems in accessing investment resources, and there are significant differences between countries, directly, in such areas as debt financing and, therefore, SMEs’ financing in Europe. is not homogeneous. Despite the large number of support instruments for investing such enterprises in the EU, successful implementation of initiatives does not occur in all countries and has a heterogeneous effect. In order to create a successful EU policy on supporting SMEs there is the need in more in-depth understanding of the problems and specificities of financing SMEs of the EU Member States.

Islamic labeled firms: Revisiting Dow Jones measure of compliance

AbstractBillions of dollars, across 131 countries, are invested in Islamic law‐compliant funds that are often promoted as consistent with the spirit and overall objectives of Islam (Maqasid Al‐Sharia), thereby indicating they are more socially responsible, less risky, and less prone to failure. The empirical results of this study indicate that Shariah‐compliant firms identified by the Dow Jones do not have higher corporate social responsibility (CSR) scores, lower risk, or lower likelihood of failure than non‐compliant firms. We address endogeneity using the instrumental variable (IV) approach and selection bias using propensity score matching (PSM). Our results are similar when using the Dow Jones Islamic Market World, the Financial Times Stock Exchange Islamic Index, and the Hong Kong and Shanghai Banking Corporation indices and when using CSR scores provided by multiple databases. We create an index to measure compliance with Islamic law that overcomes several flaws in the binary measures currently employed in the industry. This index can help Shariah‐compliant funds to fulfill their promise by constructing portfolios that are both compliant with Islamic rulings and consistent with the spirit and objectives of Islam in being more socially responsible, less risky, and less prone to failure.

СТИЛИСТИЧЕСКИЕ ОСОБЕННОСТИ ЕВРОПЕЙСКОЙ АРХИТЕКТУРЫ БАНКОВСКИХ УЧРЕЖДЕНИЙ Г. ГУАНЧЖОУ КОНЦА XIX – НАЧАЛА XX В. НА ПРИМЕРЕ О. ШАМЯНЬ

The article is devoted to the architecture of European banking institutions in Guangzhou, built on the territory of Shamyan island in the late 19th – early 20th century. A brief historical excursion into the history of the formation of the British and French concessions is given. This publication examines the stylistic and compositional features of the architecture of such banking institutions as: Hong Kong and Shanghai Banking Corporation; The Chartered Bank of India, Australia and China; International banking corporation (City Bank); Bank of Taiwan; Commercial Corporation of Mitsubishi; Yokogama Specie Bank; The E.D.Sassoon & Co.Ltd. и D. Sassoon Sons Co. Ltd; Bank of Indochina; China & France Industry Bank. A composite and stylistic analysis was conducted, an iconographic description of the buildings of the main banks located within the boundaries of the former European concessions on Shamyan Island is given The study reveals the general principles of the development of the architecture of banking institutions in Guangzhou. The materials and results of the research carried out by the authors of this article allowed us to formulate the following conclusions: 1. The territorial isolation of the Shamyan island from the Chinese part of Guangzhou, as well as the operation within the concessions of British and French laws, contributed to the fact that the development of the architectural ensemble of the island as a whole was carried out in line with the advanced West European architectural and urban trends. 2. Most of the banking buildings here are built in the eclectic style with the predominance of neoclassicism features, of course, this fact is connected with the desire of the owners of bank corporations to demonstrate to the clients and competitors the financial strength of their organizations. 3. In the architecture of the considered banking institutions there is an active use of tectonics and elements of the order system, colonnades, arcades, the allocation of the first floor in the form of a rustic plinth. The motifs of Renaissance architecture, Baroque and Art Nouveau are also traced. 4. The formation of the appearance of banking buildings in Shamyan was strongly influenced by local conditions. The hot and humid subtropical climate of the south of China contributed to the spread in the architecture of the structures of this type of order colonnades, forming deep open verandas, as well as the use of X-shaped creaks-elements to ensure the natural ventilation of buildings, which, in addition, became an expressive element of the facade decoration

The Effect of Shareholder Taxes on Bank Risk-Taking: Evidence from S Corporation Banks

This study examines the effect of shareholder taxes on bank risk-taking. Economic theory predicts that personal tax rates affect individual risk-taking through risk-sharing with the government via full loss offsets. Using plausibly exogenous changes in personal state income tax rates and detailed ownership data for a sample of S corporation banks, I find that increases in shareholder tax rates are positively (negatively) associated with bank risk-taking when shareholders can (cannot) share in risk with the government through full loss offsets. These relations are driven by banks with few shareholder conflicts and less strict regulators. Overall, the results suggest that investor-level taxes play an important role in bank risk-taking.

Corporate governance and banking performance in the context of globalization

Research background: Research background is written after the literature review. For example, Pham Q et al. (2020), emphasizes the effects of corporate governance, which is in a continuous development in the context of globalization. On the other hand, there is an obvious link between the banking activity, which is intended to be as efficient and governing as possible, which is also highlighted in the work of Arora A (2018). The impact of corporate governance on banking performance is also presented. Carrying out banking activity in compliance with the principles of corporate governance, leads to shaping an efficient and conducive environment for both employees and the company itself. At the same time, the application of the concept aims at the overall management of the entities, which allows the common functioning of the internal components and the performance of internal control. Purpose of the article: This paper aims to present the most important theoretical and practical aspects of the importance of corporate governance in banking performance. Corporate governance is currently receiving special attention, an argument being the numerous studies conducted and the growing interest that companies have in this concept Methods: This paper starts from the hypothesis of the influence of globalization on corporate governance and banking performance. The article was based on the study of the literature and the identification of recent data on certain banking indicators. At the same time, values of banking dynamics at the level of the period 2016-2019 were analyzed and calculated. Last but not least, the method of comparison regarding the financial performances at the banking level and the profitability rate was used. Findings & Value added: Following these researches, it was found the link between globalization and the magnitude that corporate governance currently has, in close connection with banking performance, determines the corporate variety of activity worldwide or regionally. The main results were disseminated through the article and it adds value through the analysis created at global and regional level (at European level) and the interpretation of statistical data related to banking.

The role of corporate governance in enhancing the performance of Jordanian commercial banks

The study aimed to explore the relationship between corporate governance (i.e., tasks and responsibilities of the Board of Directors, disclosure and transparency, shareholders’ rights and fair treatment of shareholders, and audit and internal control) and bank performance. Data were collected using a questionnaire distributed to a sample consisting of managers of commercial banks in the northern region in Jordan. The study found a significant and positive relationship between corporate governance and bank performance. Particularly, the study pointed out two principles (i.e., tasks and responsibilities of the Board of Directors, and audit and internal control) were positively related to bank performance, while there were no significant relationships between the other two principles (i.e., disclosure and transparency as well as shareholders’ rights and fair treatment of shareholders). It was concluded that corporate governance is very critical for enhancing bank performance. Additionally, commercial banks should pay more attention to all principles of corporate governance.

Comfort in Australia’s Unproductive North and the Attendant Anxiety of Tropical Cyclones

In 1922, the Commonwealth Bank opened in Cairns, North Queensland, on the corner of Abbott and Spence Street, not far from the Esplanade and the waters of the Trinity Inlet. A single-story timber building, “bolted together” and pinned to the ground by sunken concrete piers, the structure was described in the local press as “cyclone proof” and the strongest timber building in Australia. Cooled by fifty exhaust vents and simplex windows, the banking chamber also met the requirements of its tropical context and was described as an “ideal office interior” in which the “health and fitness of the staff have been considered in all essentials from first class sanitation to an up-to-date ventilation system.”In this paper the entanglement of comfort—the health and fitness of the bank’s workers, both physical and psychological—with the bank’s design—both tropical and cyclone proof—will be examined. I will argue that the Commonwealth Bank was an early example of a commercial building designed to respond to tropical cyclones, a common occurrence in Northern Australia, but one which had little impact on the planning and construction of buildings at this time. While the bank was built to replace an earlier, smaller building inadequate to the institution’s needs, it was also a direct response to a catastrophic cyclone—the strongest on record—which hit Cairns and surrounding districts on February 2, 1920. Devastating the city and neighboring towns, the cyclone produced a significant storm surge, described in the press as a “tidal wave,” that inundated the city’s central business district, including Abbott Street, where the bank building was located. The structural properties and technical innovations of the new building effectively addressed the anxieties that this event, and subsequent cyclone seasons, would continue to evoke.It will also be argued that the bank building and its widely publicized innovations were part of a larger campaign by the institution (and other northern businesses) to attract staff from the cooler southern parts of Australia (Brisbane, Sydney, and Melbourne), and particularly men (managers and accountants) with wives and children. Promising both safety and comfort for its workers and their families, the bank, it will be argued, also sought to counter the popular conviction that Northern Australia was not suitable for settlement and must remain empty and unproductive. This was achieved by the banking corporation through the national promotion of the lifestyles (and especially sporting activities) of the bank workers, the climatic suitability of the bank buildings, and the technical innovations that ensured it was “cyclone proof.”

ФІНАНСОВА ЕКОСИСТЕМА ЯК ІННОВАЦІЙНА БІЗНЕС-МОДЕЛЬ СУЧАСНОГО БАНКІНГУ

The article considers the strategic priorities of the transformation of the traditional model of integrated corporate banking. In its place is formed a diverse ecosystem of banking and non-banking organizations. Despite the rapid development of digital innovation in the retail banking markets and the growing influence of non-banking organizations in the institutional business, the corporate banking market was "protected". Thus, a turning point in this area has come due to the development of technology, changes in the work culture and regulatory framework. New generations of customers and competitors appear, trying to change the established order of things, and the usual activities and sources of income are no longer as effective. These changes not only pose problems and threats, but also open up new opportunities – banks and other financial institutions get a unique chance to position themselves in a new way as reliable helpers in the economy of tomorrow. A major issue in the transformation of banking is the intensification of competition not only within the sector but also outside it. This is due to the challenges facing other sectors of the economy. Thus, corporate business is based on the relationship with the client rather than the typical conditions, critical for the performance of company treasuries of their functions, which require deep integration of bank and client systems. Therefore, suppliers of financial technologies (fintech companies) and other alternative players are still inferior to banks in this area. Today, the largest companies already use multi-dealer currency platforms to manage currency risk. To manage payments, working capital and liquidity, many companies also use non-digital channels of access to banking services, and systems for managing treasury operations and enterprise resource planning. In order to remain active market participants not only as financial intermediaries, but also as business units, banks should act appropriately in such areas as assessment of possible competition scenarios in the industry, investment in customer interface development and actively participate in the creation of industry platforms. The changes in the mentioned areas not only pose threats, but also open up new opportunities for banks and other financial institutions.

CURRENT TRENDS IN ANTI-CRISIS MANAGEMENT OF THE BANKING BUSINESS

Introduction . The global financial crisis of 2007-2008 gave impetus for global changes in the banking business in the world, caused a total revision of capital reserve norms, serious changes in the economic, credit and financial spheres, as well as structural changes in the banking services environment and increased requirements for liquidity and stability of financial institutions. Large international banking groups were forced to adapt to the new competitive environment, which is characterized by a significant decline in profitability indicators, revolutionary shifts in the financial services market associated with the introduction of new banking products and the emergence of new players in the banking market. Purpose Analysis of the main trends in the development of anti-crisis management in the banking business and the formation of models for early warning of banking crises. Results . Based on the analysis of the role of state capital in the banking system in many countries, the article focuses on the significant share of state capital in the Ukrainian banking sector, where the share of state-owned banks is several times larger than in Eastern European countries. Despite the fact that the share of state-owned banks in net assets continued to decrease during 2020, more than half of the assets of the Ukrainian banking system belong to state-owned banks. Therefore, the article proposes the development of a state strategy for the privatization of state banks in Ukraine. It was argued that in order to avoid or at least mitigate the consequences of future financial crises, it is necessary to formulate a clear theoretical and economic basis for the driving factors of the crisis and to have effective models for their early warning. The article shows that such models should show in the early stages of an increase in financial imbalance and systemic risk in the country's economy. Originality. The article analyzes modern trends in the development of anti-crisis management systems in the banking business in the context of the new requirements of national and international regulators and standards III. Special emphasis was placed on comparing the features of anti-crisis management in banking in Ukraine, global systemically important banks and the banks in countries of Eastern and Central Europe. Conclusion. The analysis showed that banks have made significant changes to their business models since the global financial crisis. The profitability of almost all business lines of banks has become significantly lower than the pre-crisis indicators, while the greatest decrease in profitability is observed in investment and corporate banks, which were most affected during the crisis and faced the most significant increase in the requirements of Basel III and national regulators. A significant part of the state capital in the Ukrainian banking system carries many risks in the long term, since such a policy of mass nationalization of commercial banks and, as a result, the domination of state capital in the banking business may make sense only in the short term, while in the long term it can lead to a decrease in the efficiency of banking sector.