Security Of Commercial Banks Research Articles

ЗАГРОЗИ ФІНАНСОВІЙ БЕЗПЕЦІ БАНКІВСЬКИХ УСТАНОВ УКРАЇНИ В УМОВАХ ЦИФРОВІЗАЦІЇ

Introduction. The relevance of the study is due to the need to investigate threats to the financial security of the banking sector of Ukraine in the context of global digitalization of the financial space. The banking system of Ukraine is currently facing a dual problem, in particular, the pace of innovation and investment activities of banks and global technological progress contribute to the emergence of new banking innovations, while on the other hand, the Ukrainian banking system faces numerous internal risks and threats. The ability to minimize the negative impact of such threats, timely detection and neutralization of them contributes to the improvement of the financial security of banking institutions, taking into account the level of their innovation and investment activities. The purpose of the article. The aim of the paper is to study threats to the financial security of banking institutions in the context of digitalization of the financial space and active use of banking innovations by commercial banks. Metods. In order to achieve this goal, the authors used the following research methods: analysis and synthesis, systematization, abstract thinking, and scientific abstraction. Results. In the article, the authors systematize scientific approaches to defining the essence of financial security of a banking institution and propose the author's approach to its typological characteristics with due regard for digitalization. The study also classifies threats to the financial security of banking institutions. Conclusiоns. It is substantiated that all threats to the financial security of banking institutions are divided into internal and external. Based on a critical analysis, the author's own approach to systematizing external and internal threats to the financial security of banking institutions in the context of intensifying their innovation activities is proposed, in particular, threats to the financial security of commercial banks are allocated by such features as: general economic situation; financial condition and financial stability; technological and digitalization; competitive environment; level of management and human resources; martial law.

ЗАГРОЗИ ФІНАНСОВІЙ БЕЗПЕЦІ БАНКІВСЬКИХ УСТАНОВ УКРАЇНИ В УМОВАХ ЦИФРОВІЗАЦІЇ

Introduction. The relevance of the study is due to the need to investigate threats to the financial security of the banking sector of Ukraine in the context of global digitalization of the financial space. The banking system of Ukraine is currently facing a dual problem, in particular, the pace of innovation and investment activities of banks and global technological progress contribute to the emergence of new banking innovations, while on the other hand, the Ukrainian banking system faces numerous internal risks and threats. The ability to minimize the negative impact of such threats, timely detection and neutralization of them contributes to the improvement of the financial security of banking institutions, taking into account the level of their innovation and investment activities. The purpose of the article. The aim of the paper is to study threats to the financial security of banking institutions in the context of digitalization of the financial space and active use of banking innovations by commercial banks. Metods. In order to achieve this goal, the authors used the following research methods: analysis and synthesis, systematization, abstract thinking, and scientific abstraction. Results. In the article, the authors systematize scientific approaches to defining the essence of financial security of a banking institution and propose the author's approach to its typological characteristics with due regard for digitalization. The study also classifies threats to the financial security of banking institutions. Conclusiоns. It is substantiated that all threats to the financial security of banking institutions are divided into internal and external. Based on a critical analysis, the author's own approach to systematizing external and internal threats to the financial security of banking institutions in the context of intensifying their innovation activities is proposed, in particular, threats to the financial security of commercial banks are allocated by such features as: general economic situation; financial condition and financial stability; technological and digitalization; competitive environment; level of management and human resources; martial law.

ЦИФРОВОЙ БАНКИНГ КАК ЭЛЕМЕНТ ОБЕСПЕЧЕНИЯ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ КОММЕРЧЕСКОГО БАНКА

This article examines the essence of the security of an economic entity, including its economic security as a key component of the system. Its importance for commercial banks is presented, for which compliance with economic security is considered as one of the main conditions for functioning due to the specifics of their activities. The essence of the system of economic security of the banking sector is determined, its features are revealed, and the directions of its provision through the use of modern methods are determined, among which an important place is given to digital banking, in relation to which the advantages and disadvantages of its use as a tool for ensuring the economic security of commercial banks are studied.

ECONOMIC SECURITY OF COMMERCIAL BANKS AND METHODOLOGY FOR ASSESSING THE LEVEL OF ITS PROVISION

The need for an adequate assessment of the economic security for each bank is one of the main tasks, since this will identify potentially dangerous risk factors, with a view to their subsequent minimization in order to reduce the level of probability of financial losses and reduce the likelihood of bankruptcy. The paper discusses methods for assessing the level of economic security of commercial bank, as well as presents the factors affecting the economic security of banks, criteria and indicators for assessing the financial stability of commercial banks

Methodology for ensuring economic security of commercial banks

In recent years, the developed financial and economic relations of Uzbekistan active promotes structural economic reforms and modernization of the functioning of the banking system in order to ensure sustainability of the economy. Methods to improve the security mechanism should be explored economic security based on economic illegal encroachments and occurrence of risk areas banks. The purpose of the study is to provide theoretical justification and develop organizational and methodological foundations for the development of the mechanism for ensuring economic security of commercial banks. When developing this problem, the following methods are used: dialectical, analytical, systematic approach, quantitative and qualitative information processing, formal-logical, empirical, expert assessments, etc. on the security of banking activities. The subject of the study is the system of management relations that have emerged in the process of functioning and development of the mechanism for ensuring the economic security of commercial banks from the influence of various threats and banking risks, updating the tools for their implementation, and the object of the study is a set of economic entities engaged in entrepreneurial activities in the banking sector. In this study, a study is conducted to assess the development of the security mechanism economic security of the bank and banking services. Based on the study, proposals are put forward from the point of view of the existing form of banking services and the use of information technologies in order to determine the level of collateral economic security of the bank and optimization of the structure of banking services. This will help better prepare the banking system for new challenges.

Current Issues of Financial Security of Commercial Banks

Ensuring financial security is a prerequisite for ensuring the liquidity and financial stability of commercial banks. Thus, the deepening of risks in the activities of banks negatively affects their liquidity and financial stability. The article identifies topical problems associated with ensuring the financial security of commercial banks of the Republic of Uzbekistan and developed scientific proposals aimed at solving these problems.

SPECIFIC FEATURES OF BUILDING INTERNAL FINANCIAL CONTROL FRAMEWORK AND ARTIFICIAL INTELLIGENCE IMPLEMENTATION IN A COMMERCIAL BANK

The article is dedicated to the analysis of principles and procedures for building internal financial control in a commercial bank. The practice of internal financial control is considered on the example of Sberbank (Russia). The authors outlined the prospects for introduction of computer audit and the use of artificial intelligence to ensure the security of commercial banks in Russia and other countries.

Improving The Financial Security System Of Commercial Banks

The article examines the nature of financial security of commercial banks, the methodological framework and conditions of its provision. Scientific proposals and practical recommendations on the areas of financial security of commercial banks have been formed through a systematic approach to the factors affecting the financial security of commercial banks.

Формування механізму забезпечення фінансової безпеки банківської установи

Annotation. Introduction. The current situation in the market of banking services is due to the influence of internal and external factors that make the bank vulnerable to crises. The financial security of the bank is the key to its stable development, so its research is extremely important. The priority of ensuring the financial security of the bank necessitates a comprehensive approach by developing an appropriate mechanism to ensure the financial security of the bank, taking into account the impact of external and internal threats. Purpose. The purpose of the work is to develop elements of the mechanism for ensuring the financial security of the bank, taking into account internal and external threats. Results. Theoretical problems of the mechanism of financial security of the bank are considered. Based on a critical analysis of the economic literature, the author’s interpretation of the concept of “mechanism for ensuring the financial security of the bank” from the standpoint of the impact of internal and external threats. The purpose and tasks of the mechanism of ensuring the financial security of the bank are highlighted. It is proposed to divide the functions of the bank’s financial security mechanism into basic and specific functions, those that are inherent in banking. The principles of ensuring the financial security of the bank are highlighted. It is substantiated that the process of forming the mechanism of ensuring the financial security of the bank is complex and should take into account the impact of internal and external threats. The threats affecting the financial security of commercial banks are ranked, with their division into internal and external. The main threats to the external environment are: global or local financial crises; falling demand for loans and banking services; the level of distrust on the part of legal entities and individuals in the banking system; refinancing volumes and the size of the discount rate; low level of investment activity in the country, and consequently the lack of investment funds. The main internal threats to the bank’s financial security are: errors in strategic planning and forecasting; irrational use of the bank’s potential; low level of return on assets. The stages of the mechanism of ensuring the financial security of a banking institution on the basis of taking into account the impact of internal and external threats have been formed. Conclusions. Based on the proposed stages of the mechanism of financial security of the bank, taking into account the impact of internal and external threats, we can trace all possible options for using strengths and opportunities in developing a strategy for financial stability of the bank, as well as identify factors influencing the bank. Keywords: threats, internal threats, external threats, collateral, mechanism, financial security of the bank, functions of the mechanism, principles of the mechanism, subjects and objects of the mechanism.

Research on economic security of commercial banks

Research on economic security of commercial banks

МІСЦЕ І РОЛЬ ЛІКВІДНОСТІ КОМЕРЦІЙНИХ БАНКІВ У ЗАБЕЗПЕЧЕННІ ЇХ ФІНАНСОВОЇ БЕЗПЕКИ

Анотація. Акцентовано увагу на необхідності / значущості дієвої системи забезпечення фінансової безпеки комерційних банків і негативах її відсутності. Зазначено, що формуванню зазначеної системи має приділятися повсякденна увага науковців і практиків, владних структур, регуляторів ринку банківських послуг, саморегулівних організацій і комерційних банків. Визначено взаємозв’язок і взаємозумовленість ліквідності комерційних банків та їхньої фінансової безпеки. Наголошено на значущості ліквідності комерційних банків у забезпеченні фінансової безпеки банківських установ. На основі критичного аналізу наявних в економічній літературі підходів наведено авторське бачення на сутність фінансової безпеки комерційних банків, а також кількісні і якісні характеристики її складових. Детально розглянуто природу ризиків втрати /недостатньої (від’ємної) /надлишкової /незбалансованої ліквідності та виявлено негативні наслідки їх прояву для функціонування комерційних банків і банківського сектору національної економіки загалом. Проілюстровано взаємозв’язок і взаємозумовленість ризиків втрати /незбалансованості /недостатності /надлишковості ліквідності комерційних банків й інших ризиків, що супроводжують банківську діяльність. Визначено місце і роль ліквідності комерційних банків у забезпеченні їхньої фінансової безпеки та значущість їхньої ліквідності для різних стейкхолдерів. Запропоноване авторське бачення індикаторів внеску ліквідності в забезпечення фінансової безпеки комерційних банків. Зроблено висновок, що ліквідність комерційних банків напряму впливає на такі складові / різновиди їхньої ФБ, як ресурсна, депозитна, кредитна, валютна, інвестиційна і боргова безпеки, безпека розрахункових операцій, безпека доходів і витрат, а також на рівень фінансової безпеки комерційних банків загалом.Ключові слова: фінансова безпека, система забезпечення фінансової безпеки комерційних банків, ліквідність, ризики утрати /незбалансованості / недостатності /надлишковості ліквідності, комерційний банк.Формул: 0; рис.: 3; табл.: 0; бібл.: 36.

ASSESSMENT OF THE BORROWER'S CREDIT CAPACITY OF THE COMMERCIAL BANK: DIRECTIONS FOR IMPROVING THE QUALITY OF INFORMATION AND ANALYTICAL SUPPORT

The article is devoted to the study of theoretical and methodological bases and the development of practical recommendations for assessing the creditworthiness of a borrower of a commercial bank. The subject of the study is a set of theoretical, methodological and practical aspects to improve the quality of information and analytical support for assessing the creditworthiness of commercial bank borrowers. The purpose of the article is to develop theoretical and methodological provisions and substantiate practical recommendations for assessing the creditworthiness of the borrower. Objectives: to analyze the actual indicators of development of the banking system of Ukraine, including the scale of credit operations of commercial banks; to study and systematize the conceptual apparatus for assessing the creditworthiness of borrowers; on the basis of regulatory legal regulation to establish an algorithm for determining the value of the default factor of the borrower-legal entity; to develop measures to improve methodological approaches to assessing the creditworthiness of commercial bank borrowers. During the research the following methods were used: abstract-logical analysis, theoretical generalization, system and statistical analysis, graphical method. According to the results of the study, the dynamics of assets and loans of domestic banks for the period 2015-2020 was analyzed. and credit operations of domestic banks for the period 2017-2020. Theoretical and methodological approaches to assessing the creditworthiness of borrowers are summarized. Measures have been developed to form a scientifically sound methodological approach to assessing the creditworthiness of commercial bank borrowers. Conclusions: proposed measures to improve the methodological support for assessing the creditworthiness of commercial banks, to improve the quality of credit operations, minimize the likelihood of risks and threats, and thus contribute to the stability of development and a high level of financial and economic security of commercial banks.

FINANCIAL AND ECONOMIC SECURITY OF UKRAINE'S COMMERCIAL BANKS: THREATS AND PREVENTION MEASURES

Being the blood artery of any country's national economy, the banking system, as an aggregate of various types of national banks and credit institutions operating under the general monetary mechanism, is constantly threatened by the negative effects of a number of factors, both external and internal origin. Banking customers, competitors, the state, criminal groups, foreign structures and entities, as well as the legal, general economic, socio-political, scientific and technical and natural environment, have an external influence. The sources of banking system threats are also internal systemic factors, including the imperfection of banking supervision and regulation, the application of methods of unfair competition of competing banks, the development of mergers and acquisitions of banks, as well as the falsity, irrationality, imperfection of the internal environment. The essence of the concepts of security of a commercial bank and security of a commercial bank are considered and the author's vision of understanding the essence of the concept of and economic security of a commercial bank is proposed. Special attention is paid to the differentiation of financial and economic security threats to which commercial banks are exposed, performing their specific functions and acting as direct subjects of economic and financial relations. The dynamics of actual and characteristic values of indicators, which are the main indicators of financial and economic security of commercial banks, are demonstrated. On this basis, a set of priority measures aimed at preventing internal and external threats to the investigated security of Ukrainian commercial banks is proposed. The results of the conducted research prove the urgency of the problem of ensuring the financial and economic security of commercial banks, that is, preventing the probable or overcoming existing threats, both external and internal. The success of overcoming this problem depends to a large extent on the correct understanding of the concept of and economic security of the bank and the specific features of banking activities, which, in fact, create an extremely wide range of threats. Vulnerable to the negative impact of various events and phenomena inherent in both the world and domestic economies, commercial banks of Ukraine need a comprehensive solution to the issue of protection against threats to their security in general and financial and economic, in particular. The proposed set of identified measures requires a well-thought-out approach to their implementation through a well-formed mechanism, which is the object of further scientific exploration.

ІНТЕГРАЛЬНА ОЦІНКА РІВНЯ ФІНАНСОВОЇ БЕЗПЕКИ КОМЕРЦІЙНОГО БАНКУ

У статті досліджено методичні підходи вітчизняних вчених щодо оцінки рівня фінансової безпеки комерційних банків та запропоновано власну методику, що базується на обчисленні інтегрального показника рівня фінансової безпеки банку та виділенні трьох складових: капітало-ресурсної, кредитно-інвестиційної та дохідно-витратної безпеки. Інтегральну оцінку фінансової безпеки банку апробовано на прикладі АТ «Ідея Банк».

Indicators to Assess Financial Security of the Banks

Ensuring liquidity and sustainability of commercial banks enables to satisfy the needs for loans extended to individuals and legal entities, as well as to provide continuity of the payments in the economy. In turn, banking liquidity and ensuring solvency are considered to be a crucial precondition for ensuring their financial security. As far as we know in the world practice there is no single approach to the financial security of banks and the system of assessment indicators. Statistic data used in various countries required to the calculation of assessment indicators vary in different countries. This, in turn, does enable to entirely assess the financial security of banks. Methodology of the study was based on modern foreign scientist`s research works. In the article was used indicators coefficients and the data provided from the Central Bank of the Republic of Uzbekistan. In this regard this article is devoted to the research of scientific-theoretical aspect of financial security. In addition, the article specifies the indicators used to assess financial security of commercial banks. The research has been conducted on the case-study of joint-stock commercial bank “Asaka” operating in our republic. Moreover, the article presents assessment of the financial security of “Asaka” JSCB, as well as determines the problems associated with ensuring financial security. In addition, the article contains scientific proposals aimed at eliminating the problems specified above. In terms of the method available, the indicators used for assessing financial security are fit for the enterprises, however, such indicators haven’t been developed for banks. In the method proposed in this article, the indicators used for assessing financial security have been structured in terms of the peculiarities of commercial banks operating in the republic.

Развитие корпоративной банковской отчетности в целях внутреннего аудита и контроля финансовой безопасности

Based on the analysis of corporate reporting formed today in commercial banks, the author identifi ed the need for its development to improve management efficiency, including internal audit organized by owners, as well as monitoring financial security conducted by top management of banks. Particular attention is paid to the organization of IT technologies and their control in order to ensure the fi nancial security of commercial banks, including in the system of preparing corporate management reporting, which together with the compliance with Basel III standards is aimed at solving the problem of reducing banking risks.

PROBLEMARY ASPECTS OF FINANCIAL AND ECONOMIC SECURITY OF COMMERCIAL BANKS

The article substantiates the issue of important aspects of financial and economic security of commercial banks. In order to maintain the financial and economic security of the bank, it is important to comply with a number of conditions. Such conditions include an adequate level of liquidity, securing loan repayments, increasing bank profitability and minimizing banking risks. Models and methods by which the level of financial and economic security of banks are evaluated are analyzed and systematized in the article. All available models are reduced to an economic security assessment, as the bank's work is based on financial transactions. Therefore, the method of ratios and indicators was used to assess the level of financial security of the bank. The study raised the problem of selecting the required number of indicators that most affect the financial and economic security of a commercial bank. Credit risk was chosen among a large number of external and internal factors, as they have a significant impact on creditworthiness and are set to limit the credit risk of the bank. The weakening of financial security is evidenced by a decrease in liquidity and an increase in accounts payable and receivables, non-compliance with credit risk indicators. Therefore, the article analyzes the financial security by internal factors of influence, namely, the credit risk standards H7, H8 and H9. Three banks were selected for analysis: Oschadbank, Alfa-Bank and UkrSibbank. Today, the level of financial and economic security of the bank is insufficient among Ukrainian banks. In order to form a high level of financial and economic security of the bank it is necessary to achieve effective management of all subsystems of the bank, to develop effective financial management of the bank, to carry out careful personnel selection, as well as to ensure effective risk management. Keywords: financial and economic security of a commercial bank, methods of assessing financial security, models of financial security assessment, credit risks.

The use of accounting information for assessing the economic security of commercial banks

The authors studied the use of accounting information for assessing the level of economic security of commercial banks. The article substantiates the choice of financial indicators of credit institutions as input parameters of the neural network. The analytical platform Deductor Studio Academic was chosen as the instrumental environment for assessing the level of economic security of banks. With its help, cluster analysis was performed. The division of the initial set of credit institutions into subsets (economic security classes) used the k-means method with splitting into three clusters: cluster 0 - “Optimal level of economic security”, cluster 1 -“Conditionally optimal level of economic security”, cluster 2 - “Low level of economic security”. The proposed data model with the results of the division of credit institutions into clusters according to the financial indicators of International Financial Reporting Standards made it possible to draw conclusions about the level of economic security of credit institutions and justify the choice of accounting information indicators for implementing a neural network approach to banking research.

FUNCTIONING OF THE SYSTEM OF PRIVIDING FINANACIAL SECURITY OF COMMERCIAL BANKS

Introduction. Annexation of Crimea and the escalation of the conflict in the East, unfair competition, offshore of banking, inefficient activities of the state, which primary task is to create favorable conditions for business, including banking and gaps in legislation create commercial banks conditions under which they have to pay special attention to ensure their own financial security in order to ensure profitable operation in the current market conditions in which banking business is functioning. Purpose. To ensure effectively system of the financial security of commercial banks should be used systematic and comprehensive approaches. Systematic approach to ensure the financial security of commercial bank is used to develop an appropriate provision system of financial security of the bank and a comprehensive approach – to involve the development of a package of organizational and economic measures to ensure stable functioning of the bank to the achieve the appropriate level of its financial security under the condition of elimination of external and internal threats. Results. Thus, we determined that the system of providing financial security of commercial bank is serving environment for the organizational and economic mechanism of ensuring financial security of a commercial bank. In turn, the structural elements of the organizationaleconomic mechanism of ensuring financial security of a commercial bank are components of financial security management software and components of implementation management of financial security of commercial banks. Thus, the components of financial security management software of a commercial bank are regulatory, informational, methodological, analytical and technical and technological support. The components of implemention management financial security of commercial banks, in our view, is toolkit of ensuring the financial security of the commercial bank, functional and process-organizational mechanisms of insuring financial security of commercial banks. The efficiency of ensuring financial security of commercial bank based on principles. In our view, a list of principles of ensuring financial security should be supplemented by the following principles: legality, measurability, controllability, trust partnerships, alternative and economy. In turn, the guidelines of ensuring financial security of the bank, in our opinion, is a socio-economic, financial, innovative, competitive, detection and neutralization of risks and threats to financial security, compliance functioning of the bank with regulatory requirements of the National bank of Ukraine. An important element of ensuring the financial security of the bank is a method of determining the level of financial security and effectiveness of bank support, based on the financial performance of the bank and developed integral index of financial security of commercial bank. Thus the diagnosis banks financial security, based on the calculation of the integral indicator to assess the effectiveness of organizational and economic measures designed to ensure the financial security of the bank and determine the strategic positioning of the bank in the environment. Conclusion. Thus, on the basis of the analysis system of ensuring the financial security of the bank is defined as a set of structural elements (goals, principles and guidelines to ensure the financial security of the bank and the relevant organizational and economic mechanism) which in interaction with the outside and within the internal environment of functioning of the bank, provide implementation of a comprehensive strategy to achieve a certain level of its financial security.

IMPACT OF MONETARY AGGREGATES ON FINANCIAL SECURITY BANKING SYSTEM

Financial security of a commercial Bank the totality of the stages of financial security to a single commercial Bank to a specific point in time. The indicators of financial security are interrelated and thus represent a system of indicators of threats to financial security of banks. These figures in the financial security of commercial banks shall meet the requirements of the system, i.e. to reflect the main areas of activity of commercial banks and to be interrelated with the processes of their development. The system of indicators reflects the main areas of occurrence of the external and internal threats of financial security of commercial banks. The system of indicators from external threats contains indicators at the Federal and regional levels, a system of indicators against internal threats developed in the structural elements of a financial security reflects all spheres of activity of commercial banks. The system of indicators provides the threshold values of each indicator for external and internal threats separately, they provide guidance for calculation of indicators of financial security of commercial banks. The thresholds reflect the dynamics in the activity and development of commercial banks, therefore, change over time. In this regard, with the development and improvement of the activities of commercial banks the indicator thresholds should be reviewed. The system of indicators allows a comprehensive assessment of the financial security of commercial banks from internal and external threats. In the article it defined the essence and content monetary aggregates as structural elements of the monetary base, given the the opportunity of their use as indicators of assessing the financial security of the banking system. Studied the foreign experience of monetary aggregates using for analytical purposes, estimated the optimum value for Ukraine. The analysis of the dynamics of monetary aggregates and derivative coefficients for the period 2005 - 2016.