Definition Of Financial Stability Research Articles

ИННОВАЦИОННЫЕ ИНСТРУМЕНТЫ УПРАВЛЕНИЯ ФИНАНСОВОЙ УСТОЙЧИВОСТЬЮ ОРГАНИЗАЦИЙ И ЭФФЕКТИВНОСТЬ ИХ ПРИМЕНЕНИЯ

in this article, the authors consider innovative tools for managing the financial stability of commercial organizations. The definition of financial stability is given, its role in ensuring the financial security of the enterprise is determined. The key ways and methods of assessing the financial stability of an enterprise are being studied. The possibilities of using innovative tools for managing the financial stability of commercial organizations are analyzed and their possible effectiveness for implementation at enterprises of the metallurgical industry is determined.

ASSESSMENT AND WAYS TO INCREASE THE FINANCIAL STRENGTH OF THE ENTERPRISE

Today we are witnessing the deepest financial crisis, which has affected almost all sectors of the economy. In conditions of competition and constant struggle, some enterprises and organizations were doomed to extinction. The rest, who managed to endure and endure, had to learn to survive in conditions of great risk and uncertainty, when all decisions have to be made independently without instructions and orders from above. In the new market conditions, organizations found themselves in close contact with the external environment, to which it was necessary to adapt. In today's business environment, one of the most important tasks is to find a balance between the level of solvency and financial stability of the company. Although each of these categories is a component of the company's financial balance sheet, financial independence as a forecast of the company's solvency in the long run can be analyzed using indicators of financial stability. Unlike liquidity and creditworthiness indicators, financial stability indicators are important for internal users of financial information in the organization. Financial stability is the most important characteristic of financial and economic activity of the enterprise. If the company is financially stable and solvent, it has an advantage over other companies of the same profile in attracting investment, obtaining loans, choosing suppliers and hiring qualified personnel. Finally, it does not enter into a conflict between the state and society, as it pays taxes to the budget, contributions to social funds, salaries of employees, dividends to shareholders on time and guarantees the repayment of loans and interest to banks. Despite numerous studies of financial stability, the methodological framework for analyzing the role of financial instruments in ensuring the financial stability of the enterprise has shortcomings and controversial issues. Therefore, our article is devoted to the study of the economic essence and methodological foundations of financial stability assessment, theoretical aspects of the influence of factors on ensuring the financial stability of enterprises. The essence, purposes and sequence of management of financial stability of the enterprise are investigated. The set of theoretical, methodological and practical aspects of assessing the financial stability of the enterprise and ways to improve it, the technology of assessing the financial stability of the enterprise, the system of indicators of financial stability of the enterprise are considered. The main methods of maintaining the financial stability of the enterprise are analyzed, the dynamics of indicators of financial stability of the enterprise are analyzed. The economic essence of financial stability and its value in the analysis of a financial condition of the enterprise are analyzed, the system of indicators for an estimation of financial stability of the enterprise is investigated, the maintenance and tasks of management of financial stability of the enterprise are defined. The necessity and importance of a systematic assessment of the financial condition of the enterprise, the expediency of developing the correct strategy and tactics of enterprise development are substantiated. The problems which can arise at the enterprise at definition of financial stability are investigated. Considered the optimization of accounting processes at the parent company; factor model of financial stability of the enterprise; ways to ensure the financial stability of the enterprise are proposed.

ФІНАНСОВА СТІЙКІСТЬ ПІДПРИЄМСТВА: СУТНІСТЬ ТА ОСНОВИ УПРАВЛІННЯ

The article considers modern approaches to defining the essence of financial stability of the enterprise, based on the analysis of which the main features of the stable financial condition of the enterprise are highlighted. The definition of financial stability has been given. The place of the analysis of financial stability of the enterprise as one of directions of complex research of a financial condition of the enterprise has been studied. The main stages of managing the financial stability of the enterprise and a brief description of their content. Much attention was paid to the study of existing approaches to assessing the financial stability of the enterprise. The study of the level of financial stability of the enterprise can be based on the implementation of the following approaches: aggregate, coefficient, margin, point, balance, integral, factor and matrix. It is emphasized that the company in the process of analysis may choose different approaches, depending on the purpose, objectives and research program. It has been determined that it is advisable for companies to form their own system of criteria, which can be used in the process of assessing the current and future state of financial stability to study the financial stability of a company. The existing classifications of factors influencing the financial stability of the enterprise have been analyzed, and the classification according to the place of their origin has been carefully considered. It has been determined that the external factor can be divided into the following groups: economic, those that characterize the state of the market environment, demographic, political, legal, technological and others. Internal factors can be divided into operational, investment and financial. It has been emphasized that external and internal factors influencing the financial stability of the enterprise differ in the mechanism of response by the enterprise. The company can not influence the action of external factors, as they do not depend on the activities of the company, but are related to the nature of government regulation and economic development in general. Therefore, they need more attention to ensure timely response and adaptation to change. Internal factors are in the area of regulation of the enterprise, are important in terms of forming the strategy of the enterprise.

Развитие теоретических и методических положений анализа финансовой устойчивости вузов

Цель: в статье исследуется содержание финансовой устойчивости вузов через систему показателей, которыми она характеризуется. Обсуждение: приводится уточненное определение финансовой устойчивости, определяется набор и содержание показателей для ее анализа, учитывающий специфику деятельности вузов. Результаты: автором предложено уточненное определение финансовой устойчивости, которое дает возможность связать теоретическое представление о ней с порядком расчета показателей, позволяющим обосновать типологию финансовой устойчивости конкретного экономического субъекта. Определены состав и содержание показателей для анализа финансовой устойчивости вузов в контексте особенностей учетных объектов организаций бюджетной сферы. Раскрытое содержание показателей, используемых в аналитических расчетах, может во многом обеспечить понятность и прозрачность методики определения и аналитических выводов о финансовой устойчивости вузов для различных пользователей информации.

Money Market Funds Reforms in the US and the EU: The Quest for Financial Stability

This article considers the impact of money market funds (MMFs) reforms in the US and the EU on the money market fund industry and global financial stability. The 2008 financial crisis proved that MMFs are a source of considerable instability to the global financial system, and highlighted their susceptibility to runs. The shareholders’ incentive to redeem their shares before others do when there is a perception that the MMFs might suffer a loss makes MMFs vulnerable to runs. Given this reality, the article argues that the emphasis of the financial regulators on achieving the stability of the entire financial system after the 2008 financial crisis necessitates the strictness of the new reforms. Divided into six parts, the article outlines the attributes and classification of MMFs, the definition of financial stability, and the run and systemic risk posed by MMFs during the financial crisis, before assessing the MMFs’ reforms in the US and the EU and the impacts of these reforms on the MMFs industry and global financial stability system. The major component of the US reform is the introduction of the floating net asset value (FNAV), where an MMF’s share price will fluctuate to reflect the daily market value of the fund assets. In the EU the new regulation provides investors with a high degree of optionality for investing by introducing Low Volatility Net Asset Value (LVNAV) MMFs. The article concludes that despite that, the reforms are likely to jeopardize the viability of some categories of MMFs, they enhance global financial stability, and the complexity of the reforms has made MMFs more appropriate products to financial institutions’ investors than retail investors. Money market funds, financial stability, the UK, the US, macro-prudential policy

Подходы к определению финансовой устойчивости региона

The article examines the approaches to determining the financial stability of the region, which reveals the main essence of financial stability. Guided by the experience of leading researchers, the key determinations of financial sustainability and their factors based on which it is possible to prevent its crisis situations are explored. The article describes the methods of the system approach to the definition of financial stability, which reveal the signs of financial stability. The main groups of factors that affect the financial stability of the region are identified. Based on the conducted research, qualitative and quantitative parameters of financial stability factors that determine the sustainable development of the financial system are revealed. The results of the research have a practical value of research, which in the long term can be used by regional authorities to develop a strategy for sustainable development of the regional economy.

Financial Stability as an Indicator of the Effectiveness of Managing Changes in All Spheres of the National Financial and Economic System

The article is devoted to the consideration of the problem of ensuring and maintaining financial stability as an indicator of the effectiveness of change management in all areas of the national financial and economic system. The study presents approaches to the definition of financial stability, the factors on which it depends, the processes that are affected and characterized by financial stability. The crisis phenomena of the national financial and economic sphere, which were triggered by the global financial crisis of 2008–2009, are considered and its consequences, factors that have broke financial stability in Ukraine and their effects for the economy. The relevant aspects of maintaining global financial stability and the factors that influence this are highlighted. The current financial and economic state of Ukraine is considered in the light of progressive adaptation and integration changes in all spheres of the national financial and economic system, which ensures financial stability. The importance of effective change management in all areas of the national financial and economic system is outlined to ensure and maintain financial stability. Based on the results of the study, it was established that modern adequate understanding and acceptance of the problem of ensuring and maintaining financial stability as an indicator of the effectiveness of change management in all areas of the national financial and economic system is impossible without uniting interests and involvement in the processes of positive changes of all subjects financial and economic system – the state, the real sector of the economy, households and financial market. Prospects for further research is to determine the optimal values of indicators in all areas of the national financial and economic system, which provide financial stability, and therefore are the information and analytical basis for the development and implementation of effective solutions at all management levels.

Corporate financial stability and change of capital availability as a result of a loss event

(ProQuest: ... denotes formulae omitted.)IntroductionFinancial stability of a company is one of essential factors which determine the availability of necessary corporate capital (funds). The regular activity of a company may be disrupted as a result of impact of various factors. A specific situation is the disruption of business activity of a company as a result of a loss event (fortuitous event). Loss events may lead to disruptions in particular areas of company activity, causing its financial instability. Restoration of the company activity to the initial state (prior to this event) requires capital injection, which should lead to improvement of a company's condition and restoration of financial stability.The company capital demand may be varied, not only due to the extent of incurred losses, but also depending on the adopted risk management strategy. By adopting an active attitude, (i.e. applying transfer of risk to an insurance institution and/or raising reserves for covering losses with own resources - equity capital), a company will not demonstrate an increased demand for capital because it may use compensation or reserves to cover losses. However, in the situation when a company adopts passive attitude towards risk (i.e. does not secure financial resources for covering losses related to a fortuitous event), it will be forced to obtain external funding in order to restore smooth functioning. Unfortunately, as a result of a loss event, parameters illustrating financial stability in basic areas, such as financial liquidity, assets management efficiency (productivity), debt management (solvency) and profitability are disturbed, which may limit or even withhold the availability of external capital.The main purpose of the study is to present the parameters of financial stability of a company, as well as to show the direction of their potential changes as a result of a loss event, taking into consideration their significance for ensuring access to external sources of capital necessary for covering the negative effects of an unforeseen event. The following thesis was adopted in the study: Financial stability of a company is a necessary condition for constant, undisturbed development, mainly by ensuring access to external capital in the case when it is necessary to cover the adverse effects of loss events.In connection with the adopted research assumptions, theoretical studies were conducted with the intention to solve the research problem that includes several elements: (1) definition of financial stability from the microeconomic perspective, (2) identification of company financial stability parameters, (3) indication of the potential changes of such parameters as a result of a loss event with regard to availability of external capital for covering the arising losses. Empirical justification of the presented thesis was based on the simulation analysis.The study consists of six sections. The second section defines financial stability from the microeconomic perspective, indicating the basic parameters determining corporate financial stability. The third section presents the problem of corporate financial stability in respect of a change in capital demand as a result of a loss event. The variability of financial stability parameters with reference to covering the negative effects of a loss event is presented in the fourth section. The fifth section contains the results of simulation analysis performed in order to indicate potential changes of parameters of corporate financial stability as a result of a loss event, taking into consideration their consequences for the availability of external capital. The conclusions of the conducted theoretical studies and empirical research is included in the sixth section.1. Corporate financial stability and its defining parametersThe notion of financial stability appears in literature mainly in the macroeconomic context. It is regarded as a condition of proper functioning of the economic system of a country aiming at economic growth [Wojtyna 1995, p. …

BANK COMPETITION AND FINANCIAL STABILITY: MUCH ADO ABOUT NOTHING?

AbstractThe theoretical literature gives conflicting predictions on how bank competition should affect financial stability, and dozens of researchers have attempted to evaluate the relationship empirically. We collect 598 estimates of the competition‐stability nexus reported in 31 studies and analyse the literature using meta‐analysis methods. We control for 35 aspects of study design and employ Bayesian model averaging to tackle the resulting model uncertainty. Our findings suggest that the definition of financial stability and bank competition used by researchers influences their results in a systematic way. The choice of data, estimation methodology, and control variables also affects the reported coefficient. We find evidence for moderate publication bias. Taken together, the estimates reported in the literature suggest little interplay between competition and stability, even when corrected for publication bias and potential misspecifications.

Bank Competition and Financial Stability: Much Ado About Nothing?

The theoretical literature gives conflicting predictions on how bank competition should affect financial stability, and dozens of researchers have attempted to evaluate the relationship empirically. We collect 598 estimates of the competition-stability nexus reported in 31 studies and analyze the literature using meta-analysis methods. We control for 35 aspects of study design and employ Bayesian model averaging to tackle the resulting model uncertainty. Our findings suggest that the definition of financial stability and bank competition used by researchers influences their results in a systematic way. The choice of data, estimation methodology, and control variables also affects the reported coefficient. We find evidence for moderate publication bias. Taken together, the estimates reported in the literature suggest little interplay between competition and stability, especially in developing and transition countries, even when corrected for publication bias and potential misspecifications. (This abstract was borrowed from another version of this item.)

The Selected Aspects of Application of Monetary Policy in the Economic and Monetary Union Pre-And-Post 2008

Abstract Purpose of the article is to present in two parts the selected aspects of application of monetary policy in the euro area pre and post 2008 as well as insitutional adaptations brought by the EU legislator. Methodology/methods In order to better explain these points, the article relies partially on a comparison with the framework and application of the monetary policy by the Federal Reserve as well as on a historic method when outlining the influence of definition of financial stability from the ECB/Eurosystem towards other prominent central banks. Scientific aim The article presents selected aspects of the monetary policy in the part of the EU where single currency was introduced in order to outline state of the art governance structure as well as a certain institutional creativity in application of powers conferred upon the central banks by the Treaty on the Functioning of the European Union and Protocol on the Statute of the European System of Central Banks and of the European Central Bank. The goal is to prove (i) the hypothesis of robustness of the framework and (ii) present the limits that can only be pushed further by the legislative power. The conclusions confirm on the one hand that the framework of monetary policy based on strong institutional safeguards such as legislative power and independence is very resilient and can prove efficient and creative enough to stabilise an innovative monetary system, however, on the other hand, validate the hypothesis that certain adaptations can only be performed on the basis of a legislative adaptations.

The Selected Aspects of Application of Monetary Policy in the Economic and Monetary Union Pre-and-Post 2008

Abstract Purpose of the article is to present in two parts the selected aspects of application of monetary policy in the euro area pre and post 2008 as well as insitutional adaptations brought by the EU legislator. Methodology/methods In order to better explain these points, the article relies partially on a comparison with the framework and application of the monetary policy by the Federal Reserve as well as on a historic method when outlining the influence of definition of financial stability from the ECB/Eurosystem towards other prominent central banks. Scientific aim The article presents selected aspects of the monetary policy in the part of the EU where single currency was introduced in order to outline state of the art governance structure as well as a certain institutional creativity in application of powers conferred upon the central banks by the Treaty on the Functioning of the European Union and Protocol on the Statute of the European System of Central Banks and of the European Central Bank. The goal is to prove (i) the hypothesis of robustness of the framework and (ii) present the limits that can only be pushed further by the legislative power. The conclusions confirm on the one hand that the framework of monetary policy based on strong institutional safeguards such as legislative power and independence is very resilient and can prove efficient and creative enough to stabilise an innovative monetary system, however, on the other hand, validate the hypothesis that certain adaptations can only be performed on the basis of a legislative adaptations.

Central Banks and Financial Stability: A Survey

In recent years, many central banks have increased their focus on financial stability, as evidenced for example by the growing number of financial stability reports published by central banks. This text reviews this new area of central banks' work, concentrating on central banks' role in financial stability, definition of financial stability, objectives of financial stability reports, their role in central banks' accountability, links to other central central bank responsibilities, and the overall assessments presented in these reports. It identifies the main issues and challenges in this area of central bank work.

Integration of EU financial markets supervision: Harmonisation or unification?

The paper highlights what are currently the most relevant aspects in the debate surrounding the possible reform in the institutional setup of financial markets regulation and supervision, not least about the future role of Central Banks. As a preliminary question, the definition of financial stability is addressed. Then, the importance of stability for the economy and the specific role of regulators and supervisors and possible regulatory failure are discussed. On this basis, a possible evolving design for regulation and supervision on a national and a European level has to be checked against optimality, taking into account the different objectives of state intervention into the market. Finally the state of play in the institutional reform of European financial market legislation is described.