Types Of Financial Institutions Research Articles

Identifying the systemic importance and systemic vulnerability of financial institutions based on portfolio similarity correlation network

The indirect correlation among financial institutions, stemming from similarities in their portfolios, is a primary driver of systemic risk. However, most existing research overlooks the influence of portfolio similarity among various types of financial institutions on this risk. Therefore, we construct the network of portfolio similarity correlations among different types of financial institutions, based on measurements of portfolio similarity. Utilizing the expanded fire sale contagion model, we offer a comprehensive assessment of systemic risk for Chinese financial institutions. Initially, we introduce indicators for systemic risk, systemic importance, and systemic vulnerability. Subsequently, we examine the cross-sectional and time-series characteristics of these institutions’ systemic importance and vulnerability within the context of the portfolio similarity correlation network. Our empirical findings reveal a high degree of portfolio similarity between banks and insurance companies, contrasted with lower similarity between banks and securities firms. Moreover, when considering the portfolio similarity correlation network, both the systemic importance and vulnerability of Chinese banks and insurance companies surpass those of securities firms in both cross-sectional and temporal dimensions. Notably, our analysis further illustrates that a financial institution’s systemic importance and vulnerability are strongly and positively associated with the magnitude of portfolio similarity between that institution and others.

The Road of Banking Innovation and Development: Taking Shenzhen Qianhai We Bank as an Example

With the continuous evolution and reform of the financial market, private banks, as a new type of financial institution, have increased the diversity of the financial system. To better meet the needs of customers, private banks have expanded innovative business models and technology applications, promoted the competitiveness of the financial market, and improved the efficiency of financial services. This article concentrates on the operation pattern of Shenzhen Qianhai WeBank and uses the SWOT analysis method to analyze the advantages, disadvantages, challenges, and opportunities in its operation process, also finds out the differences between traditional banks and emerging Webanks and puts forward suggestions for bank operation mode. Shenzhen Qianhai WeBank is currently the leader of Internet banks in China, and it also ranks first among private banks in terms of its asset scale and the number of customer groups. The study of Shenzhen Qianhai WeBank bank can shed light on the innovative operating model for banks from its powerful Internet technology gene, excellent financial linkability, and diversified ecological cooperation.

Prediksi Jumlah Kasus Klaim Indemnity Dengan Menggunakan Algoritma Regresi Linear Pada Asuransi Mandiri Inhealth

Insurance is a type of financial institution that aims to provide guarantees to customers against risks that may occur in the future. In this study, by utilizing some data on indemnity claim cases on inhealth insurance through a prediction method approach and can be applied in analyzing data to make predictions of future insurance data based on the level of need. The prediction process of a simple Linear Regression algorithm can be implemented where the results also provide new insights for the prediction needs of claim data. Tests using rapidminer produce performance that is relevant to the scenario being modeled. The simple Linear Regression equation model after comparing the results of calculations manually and also with the Rapid Miner application generally shows the same data. The RMSE value is also obtained when evaluating the performance of the applied model, with an RMSE value of 0.273 with a standard deviation of +- 0.0.

Interconnectedness of financial institutions based on pledged shares in China

Influential system-wide events since the Global Financial Crisis of 2008 have exhibited characteristics of risk contagion and spillover that arise from the interconnectedness of financial institutions. Both direct liability relationships and indirect interconnectedness measured by asset similarity can contribute to systemic risk. The present study constructs dynamic networks based on the same pledged shares held by different institutions in China from 2004 to 2021. The results show that policy changes such as transaction standardization and stricter rules on the use of credit can significantly affect stock-pledge transactions. This paper quantifies these effects with regard to different types of financial institutions, and finds that larger indirect interconnectedness could be related to lower stock-return volatility and higher systemic risk.

INSTITUTIONAL AND SEGMENTAL ASPECTS OF UKRAINE’S FINANCIAL MARKET DIGITALIZATION

The article deals with the development analysis of certain segments of Ukraine’s financial market in the context of digitalization processes. The positions of modern foreign and domestic scientists regarding the digitalization impact on economic and financial relations are outlined. The key disproportions of the financial market at the institutional and segmental levels are highlighted. In particular, at the institutional level – the long-term and unchallenged dominance of banks over non-banking financial institutions; absence or minimal development of certain types of financial institutions; weakness of stock exchanges and exchange infrastructure in general; low level of financial inclusion. At the segmental level – imbalances in the lending market development, insufficient volume of the corporate securities market; weakness of leasing lending segments, factoring services, etc. It is argued that in the post-war reconstruction of Ukraine, the financial market should become an effective mechanism for the distribution of capital, therefore it is important to conceptually change the emphasis in its development on the digital technologies basis. It has been established that nowadays, the participants of various segments of the financial market are adapting their own strategies to the digital economy’s requirements. However, the degree of such adaptation and digitization level of certain segments of the financial market of Ukraine differ significantly. These disparities largely determine the strategic prospects of various segments of the domestic financial market. A similar conclusion was made regarding the digitalization strategy of financial institutions in Ukraine. For many financial institutions, the digitization of operations has become one of the important competitive advantages, but there are other approaches – in particular, in terms of digital technologies’ use for unfair competition and systemic violations of the rights of investors and consumers of financial services.

Corporate governance and risk management in Islamic and convectional financial institutions: explaining the role of institutional quality

PurposeThis study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and conventional financial institutions (CFIs) of Pakistan. It also investigated the moderating role of institutional quality (IQ) in shaping the effects of CG practices on financial institutions of Pakistan.Design/methodology/approachA sample of 57 financial institutions including commercial banks, insurance companies and Modarba companies over the period 2006–2017 is used to carry out the empirical analysis. The authors applied the robust two-step system-generalized method of moments estimator, which is also called the dynamic panel data estimator. They also built the PCA-based composite index of CG and IQ by using different indicators to investigate the moderating role of IQ. They used three proxies for risk taking, five for CG and one for Shari’ah governance. To test the validity of the instruments, they applied the Arellano and Bond’s (1991) AR (1) and AR (2) tests and the J-statistic of Hansen (1982).FindingsThe results provided strong evidence that several individual characteristics of CG and the composite index are significantly related to the operational risk, the liquidity risk and the Z-score (a proxy for solvency risk). The results also revealed that IQ significantly and substantially contributes in reducing the level of risks. Finally, the estimation results indicated that the effects of CG on risk management are significantly different at IFIs and CFIs. This differential impact is mainly attributed to the fundamental differences in business models, operational strategies and contractual obligations of both types of institutions.Practical implicationsThe findings of this study are important for enhancing our understanding of how CG relates to risk taking in Islamic and conventional financial services industries and how good quality institutions are important for formulating the governance effects on the risk-taking behavior of financial institutions. The findings suggest that a suitable size of board should be chosen to manage the risk effectively. As the findings show that the risk-taking behavior of IFIs differs from that of CFIs, the regulators and international standard setting bodies should tailor the regulatory frameworks accordingly.Originality/valueThis paper is different from the existing studies in four aspects. First, to the best of the authors’ knowledge, this is the first empirical investigation in Pakistan, which does the comparison of IFIs and CFIs while examining the impacts of CG on risk management. Second, the paper constructs the composite index of CG by considering several different indicators of governance and examines the combined effect of governance indicators on risk management process. Third, this paper adds to the growing literature on the role of IQ by investigating whether it acts as a moderator between CG structures and risk management and if yes, then whether this moderating role is different for IFIs and CFIs. Finally, the paper builds upon the existing research work on the CG effects for different types of financial institutions by proposing a single regression based analytical framework for comparing the effects across two different types of institutions, harvesting the benefits of higher degrees of freedom and avoiding/minimizing the measurement error.

Systemic risk of Chinese financial institutions and asset price bubbles

Although there has not been a large-scale systemic crisis in China, high-risk financial events have occurred continuously in recent years. This research thus creatively analyzes the determinants of systemic risk for Chinese financial institutions from the view of asset price bubbles. First, we identify bubbles in the China stock and real estate markets on the basis of the generalized sup Augmented Dickey-Fuller (GSADF) model and explain the reasons for bubble formations according to the stage of China's economic development and policies implementation. At this stage, considering the differences in economic development levels of different cities, the real estate bubbles in the first, second and third tier cities and the whole country were innovatively identified. Second, on the basis of the DCG-GARCH-CoVaR model to measure the systemic risk of listed financial institutions in China and to classify institutions, the results show that the main source of such risk is the banking sector. Furthermore, by constructing regression models, stock market bubbles and real estate bubbles both positively correlate with systemic risk throughout the sample period. Meanwhile, the impact of bubbles on the systemic risk of different types of financial institutions was taken into account so that regulators prioritized different types of institutions with different characteristics when faced with decisions. Finally, we provide macro-prudential policy advice to regulators in order to weaken the impact of bubbles on financial stability to avoid systemic crises.

THE NEW LAW ON MICRO BANKS AND WHAT IT WILL CHANGE IN THE FINANCIAL MARKET OF GEORGIA

Microfinance is the provision of financial services to low-income groups. By classical definition it contributes to the improvement of the socio-economic condition as well as financial self-sufficiency of the low-income costumer and improves their living standards. Today, microfinance institutions around the world serve up to 156 million borrowers and manage a loan portfolio of USD 187 billion (Impact Finance Barometer, 2022: 3). Formation of Georgian microfinance market began in the 1990s and was developed mainly with the same scenario as in Balkans, Eastern Europe and Central Asia. During the first 10 years after adoption of the new Law on Microfinance Organizations and commercialization of the industry, a rapid growth and fast development of the sector was recorded (2006-2016), which has been then changed by a negative trend and market decline. The main reasons of the crisis are: tighter regulation, market saturation, growing competition from commercial banks, over-indebtedness, weak corporate governance, etc. In July 2022, the draft law on the activities of micro banks was registered in the Parliament of Georgia, according to which a new financial institution focused on lending to entrepreneurial and agricultural activities - a micro bank - will enter the market from 2023. The draft law was prepared based on the recommendation of the International Monetary Fund, which advised the National Bank to introduce a micro bank as a new institutional form (International Monetary Fund, 2020: 19). As a result of the law, 4 types of financial institutions will be presented in the financial market of Georgia since 2023: commercial banks, micro banks, microfinance organizations and loan issuing entities. The new regulatory framework should give microbanks the following advantages over the current status of MFIs: The maximum loan amount per borrower will be increased from GEL 100,000 to GEL 1 million, which allows microbanks to actively enter the SME lending segment, retain good borrowers, grow faster faster in the market and compete with banks. Having the right to mobilize the deposits, microbanks will be able to better diversify their funding sources, reduce the cost of local currency borrowing (based on savings in hedging) and, accordingly, reduce the interest rate on loans for thier clients, which will also increase their competitiveness with banks. By offering bank account services, microbanks will be able to provide customers with an almost full range of banking services. After legally differenciating from “consumption” and “pawnshop” type of financial institutions, microbanks will be able to attract more investments from responsible and reputable international financial institutions. At the same time, the new draft law contains certain potential risks that need to be properly assessed and analyzed: The increase of loan size limit from 100,000 to 1 million GEL is a good for portfolio growth. However, most companies lack the experience and qualification to properly manage risks of such large loans. Past experience also confirms that the worst portfolio quality and problem loans MFIs have in large loans (over GEL 10,000). Administration of the article, according to which at least 70% of the loans of a microbank must be disbursed for business purposes, seems very difficult. As of today practically no MFIs can meet this criteria. Adding the new products (deposits, account management) requires a high-quality core banking systems and automation of many processes. Consequently, microbanks will have to mobilize additional financial and human resources to build this infrastructure, which may take several years and entail significant costs. In conclusion, it can be said that the draft law is likely to have a positive impact on the financial sector. Competition in the financial sector will increase, which will lead to the provision of better quality and diverse financial services to customers.

Evaluation of Merchant Banking and Financial Services using VIKOR Method

Commercial banking is a professional service offered by commercial banks to customers for adequate consideration to make payments for their financial needs. Commercial banks are banks that raise funds, provide financial advice and lend to large corporations. These banks are experts in international trade and are experts in dealing with large companies and industries. Commercial banking provides finance to multinational businesses and large commercial enterprises in the country, which helps in boosting the economic strength of the country. Commercial banks do not provide services to the general public; Their services are limited to commercial companies and large business enterprises. A merchant banker fa-cilitates the subscription of securities. A commercial banker plays an important role and undertakes many responsibilities such as private placement of securities, management of public issue of securities, stock broking, and international financial advisory services. A commercial bank is a type of financial institution that offers underwriting, credit services, financial advice services, and fundraising to high-net-worth individuals and large corporations (HWNIs). Commercial banks are transnational organizations with a focus on global trade and service delivery. The VIKOR (VIšekriterijumsko Kompro-misno Rangiranje) Optimal replacement Select method is used in Australia/New Zealand, Continental, Europe, UK, Japan, Singapore, United States. Alternative: Australia/New Zealand, Continental, Europe, UK, Japan, Singapore, United States. Evaluation parameters of Area of manufacturing: Number of Partners, Number of Partners Bank Years, Share of joint venture banks assets, Average ownership per partner. Results: Australiar/New Zealand is got the first rank whereas is the Singapore is having the Lowest rank.

INTRODUCTION OF BAD BANK IN THE INDIAN BANKING SYSTEM

A bank is a type of financial institution that deals with money and offers a variety of financial services. They have the responsibility of accepting the deposits and providing the loans to the customers and earning profit. The bank receives deposits from a range of customers, which are then circulated to the general public in the form of loans. If everything goes well, the loan is repaid on time then the loan is categorized as a normal asset, but if things go wrong the same asset can become a burden for the bank, if the repayment is not made on time for a variety of reasons, then these assets are classified as NPAs (non-performing assets). The idea of a bad bank has been suggested by many professionals in India, but during COVID-19 the idea got some major consequences. As a result, when presenting the budget for 2021-2022, the Union Finance Minister advocated the construction of these new types of banks. The governor of the Reserve Bank of India has also agreed to participate in this unique concept for maintaining the banking sector's growth and financial stability. The current paper examines the concept of bad banks, as well as its origins and implementations around the world.

STRATEGI KOLABORASI MODEL PENILAIAN KREDIT ALTERNATIF DIGITAL PADA LEMBAGA KEUANGAN MIKRO

Microfinance Institution (MFI) is a type of financial institutions with its considerable potential to be developed, especially established to provide services in financing products for the micro and ultra-micro segments. However, many of the MFIs actually experience difficulties in evaluating the feasibility of prospective debtors due to the absence of loan history. In addition, at the aggregate level, MFIs have a high level of non-performing loans, considering that the management only relies on social relations and closeness with prospective debtors when conducting feasibility study for loan. On the other hand, a program has been initiated by OJK since 2021 in collaboration between Financial Service Institutions and Digital Financial Providers, one of which is for MFIs with the aim of increasing productivity and efficiency by digitizing business processes. Taking into consideration to the program that has been initiated by OJK and the challenges faced by MFI industry, the aim of this study is to develop a digital alternative credit scoring strategy design with a partnership scheme in microfinance institutions. In this study, several relevant theories were used to support the analysis process, including product development strategies, external analysis (PESTEL), and internal analysis (tangible and intangible resources). As for data collection techniques Included in-depth interview and document review. The results showed that the strategy is needed in the short term (less than 1 year), medium term (1-3 years), and long term (more than 3 years) starting from matching relevant services, preparing various provisions and supporting tools needed, to institutional strengthening from the MFIs that will make an optimal collaboration to increase the role and contribution of MFIs to the economic growth in the long run.

Retracted: Internal procedures of the risk‐oriented lending process in the bank

AbstractInformation about the financial condition of financial institutions is the basis for assessing the risk of their lending. In the conditions of economic instability, the validity and effectiveness of management decisions significantly depend on the quality of financial and analytical calculations. To take into account, the specifics of the activities of various types of financial institutions when assessing the risk of their lending, the author put forward a hypothesis about the advisability of clarifying the composition of indicators used to assess the creditworthiness of borrowers. The analysis of the creditworthiness of financial companies and credit unions has been carried out. It was found that, during 2020–2021, no financial institution had the highest creditworthiness; at the same time, financial companies were more capable of meeting loan obligations than credit unions. A system of quantitative and qualitative indicators has been formed using correlation and factor analysis to assess the risk of lending to the activities of financial companies and credit unions. Certain indicators are suitable for integral assessment, and, therefore, create the basis for improving the methodological approach to assessing the risk of lending to financial institutions.

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Abstract. Introduction. With the constant growth of the deficit in the financing of pension benefits and the real threat of the state's inability to guarantee pensions, the role of the private pension system is growing. The burden on the state pension system leads to an increase in the financial burden for individuals and legal entities, due to increased contributions to the state Pension Fund, which leads to a decrease in the amount of financial resources for the development of its activities. Purpose. The purpose of the article is to analyze the activities of private pension funds in the current socio-economic development of the country.Results. The effective functioning of the national economy depends on the level of financial security of various economic entities. With the help of mobilization of their funds there is an active distribution and redistribution of financial resources between different sectors of the economy. A developed system of financial institutions is needed to develop the process of accumulation of free money. They are the ones who transfer capital from those who have savings and those who need it. Among many types of financial institutions, private pension funds deserve considerable attention. Given the practical absence of a funded system of compulsory state pension insurance, as well as the insufficient level of funding for the solidarity system, they contribute to improving the economic well-being of the population. By concluding an agreement with the NPF, each citizen can determine the amount of future additional non-state pension benefits. Thus, without the effective functioning of the third level of the pension system, the financial security of the population in old age will be minimal, which will reduce the economic development of Ukraine as a whole. Conclusions. For the effective functioning of the NPF network in Ukraine it is necessary: - ensure transparency of NPF activities and increase protection of the rights of their participants; - to establish a fund for guaranteeing pension contributions of participants, which would return part of such contributions in case of bankruptcy of the selected NPF. This would increase public confidence in these financial institutions; - to improve and modernize the regulatory framework related to NPF risk management; - take measures to improve the financial literacy of the population and increase public interest in participating in the private pension system; - reduce the taxation of payments to NPF participants when they reach retirement age; - provide tax benefits for legal entities - founders of NPFs, with a significant number of participants; - to ensure the development of the financial market in Ukraine, which will expand the range of financial instruments in which NPFs can invest.

Historical and legal preconditions for the formation of non-bank financial institutions on the territory of Ukraine

The article analyzes the socio-economic and legal reasons for the emergence of non-bank financial institutions in Ukraine and concludes that it was in the middle of the XIX century formed as part of the country’s credit system. The genesis of the development of non-banking financial institutions, the regulatory framework for their creation and operation has been studied in the following stages, in particular: the emergence of credit cooperatives; the rise of credit and its decline; revival of the non-banking financial sector (with Ukraine’s independence) and the adoption of a number of regulations. It is noted for its long history and peculiarities, which form a modern idea of the non-banking financial sector as a specific type of financial institutions and give impetus to their further development. Financial services markets are an important and integral part of the economy of every state. The article proves that the development of the financial sector, entrepreneurship and the competitive environment in Ukraine lead to the restructuring of all components of the financial market, in particular, the financial services market. Moreover,
 the activity of financial intermediaries is gaining new importance, primarily non-banking financial institutions that meet the needs of economic entities through the provision of a wide range of highly specialized financial services. This leads to an increase in the competitive potential of individual non-bank financial intermediaries, covering the maximum number of consumers at different levels of economic activity. It is determined that the objective preconditions for the emergence in Ukraine in the middle of the XIX century. Non-bank financial institutions were social and economic changes associated with the industrial development of society, characterized by the development of cooperatives, large-scale production, division of labor, enrichment of owners of means of production, landowners and impoverishment of the general population, exacerbation of their economic problems. The needs of ordinary people for additional financial resources to ensure their own existence, to receive financial services to improve living conditions, were the root cause of the non-banking monetary sector.

SOFTWARE FOR NEOBANKING: MODERN WHITE-LABEL SOLUTIONS IN FINTECH INDUSTRY

In the dynamic, unpredictable and so changeable modern world, all spheres of life are facing changes. The banking system was not left aside. Implementing innovative fintech solutions was the only option for traditional banking institutions to stay afloat. That's why the new types of banking institutions - neobanks appeared. The term “neobank”, which originated in 2017, refers to a new type of financial institution that provides modern, fast, and flexible services right in a smartphone or messenger. White-label financial services allow fintech and third parties to showcase a stylish, company-branded front end using an established bank license, regulatory compliance, and back-end technology to offer core banking features that compete with large institutions. The article analyzes the advantages and further prospects of the development of neobanks, the difference between white-label and baas solutions, as well as the principle of operation of each of the systems. An analysis of the modern market of platform developers for neobanks was carried out, which made it possible to identify the largest market players from European and Scandinavian countries. As a result of the study, the features of each of the developers of platforms for neobanks and their contribution to the development of the world economy were determined. Also, the article highlights the factors that make white-label solutions the future of online banking. The article mentions important conditions for the development of white-label solutions for neobanks, traditional and non-traditional banks – the improvement of the regulatory framework that would determine the legal status of such kinds of institutions, as well as the conditions for licensing and regulation of their activities. In the article, the most popular providers of neobanks are described. The conducted comparative analysis gave the opportunity to highlight the factors that provide these companies success, as well as to name the current market leaders. Overall, the study made it possible to identify the advantages, disadvantages, and risks of neobanks, and determine factors that provide stable growth for white-lable neobanks as well as prospects for their development.

РОЛЬ ДОМОГОСПОДАРСТВ У РОЗВИТКУ РИНКУ ФІНАНСОВИХ ПОСЛУГ УКРАЇНИ

Households, by their nature, are integral economic subjects of the national economy, which pay one of the key roles in its development and, accordingly, also act as important consumers in the financial services market. The study of the role of these subjects in the development of the specifiedmarket as an important component of the formation of conditions for its effective functioning, which determines the relevance of studying their behavior with the aim of its formation. This requires knowledge of current trends in the households’ role in the development of certain areas of the financialservices market. Within the article, a step-by-step analysis of the households’ activities within certain types of financial institutions that operate within certain types of activities of financial institutions that operate within the specified market is provided. The analysis of the main trends in the developmentof the financial services market was carried out through a gradual study of the current state of the operation of credit, deposit, insurance and investment services markets. Particular attention was focused on the study of current trends in the development of credit and deposit services markets asthe most developed links of the system of the financial services market, and the role of households in ensuring their functioning.The results obtained during the research give grounds to assert that the role of households in the country’s financial system is very important. These economic entities play a special role in the deposit market functioning, create a stable demand for credit resources, and the specific weight of loans issuedto these economic entities in the total volume of bank loans is constantly growing. Households also play a decisive role in the activities of insurance companies and non-state pension funds.It was also established that in the future, the role of households in the development of the financial services market will remain significant, and therefore, there is an objective need for the formation of a rational model of the financial behavior of these economic entities.

The features of the legal status of the operator of the information system in which digital financial assets are issued, and of the operator of the exchange of digital financial assets as organizations that provide digital financial technologies

The rapid development of digital technologies has led to the emergence of several new types of financial institutions in Russia recently, which, by using digital financial technologies, create additional opportunities for recipients of financial services. Such entities, in particular, include the operator of the information system in which the digital financial assets are issued, and the operator of the exchange of digital financial assets. The article analyzes the features of their legal status as a new type of non-banking financial organizations. Particular attention is paid to the requirements of the current legislation to these organizations. The article also analyzes the role of Bank of Russia in the supervision of their activities.

Financial architectonics in context digital globalization

The paper examines financial architecture in the context of digital globalization. The current state of financial architecture as a science of creating financial architecture, the nature, specificity, principles of development of financial systems of different levels, based on unity, general patterns of their development and regulation. The current stage of development of national financial architecture is characterized by significant contradictions. On the one hand, the national-state form of its organization is preserved, on the other hand, the possibilities of national financial policy are limited due to the growing importance of international financial instruments, increasing international capital and strengthening the role of international financial organizations. The nature of relations and interrelations of national financial architecture is changing – its openness and interdependence is increasing, the scale of chain reactions is increasing, according to which negative phenomena spread from one class of financial assets, types of financial institutions, financial market segments to others. It is accepted that financial architecture should achieve a specific goal, and its results should be measured by performance indicators that have certain specifics at different economic levels. The changes characterizing the development of the financial environment are outlined, the necessity of forming a new financial architecture taking into account the existing globalization processes and challenges is revealed. The directions of ensuring successful realization of means of digitalization of financial infrastructure, financial market are offered. We can say that the development of economic systems, technologies, real markets directly depends on the depth of financial architecture of the country's financial architecture, is the ability of a set of banking and non-banking financial institutions to effectively distribute and redistribute the movement of financial capital.

ECONOMIC SECURITY MANAGEMENT OF FINANCIAL INSTITUTIONS AS OBJECTS OF THE STATE CRITICAL INFRASTRUCTURE

The need to form a system of economic security for the effective operation of financial institutions is determined. Peculiarities of ensuring economic security of different types of financial institutions are found out, characteristic features of functional systems of economic security of financial intermediaries are revealed. It is offered to understand the management of economic security of financial institutions as a direction of management activities aimed at achieving a high level of protection of the institution's resources from the negative impact of internal and external threats by implementing a wide range of management decisions to use available opportunities and resources while providing financial services. The basics of the mechanism of economic security management of financial institutions are formed. It is assumed that the organization of the economic security system of a financial institution is carried out in several stages, such as the formation of the economic security system, ensuring the economic security system, identification, assessment, ranking of threats, and development of countermeasures; assessing the level of readiness of institutions to implement a mechanism for managing economic security; assessment of the level of economic security, development of management decisions. It is determined that the purpose of economic security management is to achieve the maximum possible level of realization of the institution's interests and meet the interests and needs of clients with optimal resource costs to minimize the impact of threats that accompany the activities of institutions.

How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries

This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial instit...