Withdrawal Of Banks Research Articles

Understanding Mass Panic

Mass panics can arise in response to a variety of situations, such as the spread of pathogens, bank failures, or insecurities about economic supplies. Such panics can produce contagious behaviors such as fleeing social contacts, bank withdrawals, and panic buying. In such situations, the processing of external stimuli, mediated by the perceptions and biases of the individual, can reach a threshold point at which panic behaviors are triggered. Due to the human propensity to imitate the behavior of others in uncertain crisis situations, one individual’s panic behavior can spread contagiously. This paper looks at the similarities among case studies of mass panic around the world and from these cases synthesizes a conceptual model to aid our understanding. Decision-makers can use this model to strengthen national resilience against panic-generated behaviors and ensure an orderly and successful public response to future biological, financial, or economic crises.

Uncertainty propagation in the simulation of a nuclear power plant operational transient

With the continuous deployment of various intermittent energy sources on the grid there is an increasing opportunity for nuclear reactors to perform power maneuvers which can help alleviate issues related to supply oscillations during some periods of high renewable output. While utility specific codes can model such transients for safety assessments, there is a need to increase confidence in the application of these codes and to quantify the capabilities and accuracies of models in predicting these transients. In this work a power maneuver from 100 % full power to 59 % full power for a large CANDU reactor was studied using the TRACE-PARCS toolset. The work was computationally expensive as it examined both the effects of i) nuclear data library uncertainty which requires re-generation of the few-group cross sections and regeneration of an equilibrium core using 4 years of synthetic fuelling, and ii) initial core burn-up distribution involving the simulation of online fuelling operations over a period of 1400 days.The figures of merit considered in this work include changes in the average liquid zone controller fill level, individual channel powers, and the timing of adjuster bank withdrawals and reinsertions. Amongst the 100 s of simulated transients, the average time between adjuster bank withdrawals to override the Xenon transient and absolute standard deviations in these timings were found to be consistent between different nuclear datasets. The observed standard deviations were small, suggesting that the sensitivity to both nuclear data and initial core configuration is relatively small for both the adjuster withdrawal phase and the reinsertion phase. The contributions to total uncertainty due to both the core initial conditions and the nuclear data uncertainty were determined. During the early phase of the transient (i.e., adjuster withdrawals) nuclear data uncertainty and initial condition uncertainties were found to contribute nearly equally to total uncertainty, with slightly larger contributions due to nuclear data uncertainty. For adjuster bank reinsertions later in the transient it was observed that the contribution to total uncertainty by initial condition uncertainty was on average twice that of nuclear data uncertainties.The transients were compared to an actual power maneuver in a ∼900 MW CANDU reactor. In all cases, the model’s behaviour, while qualitatively correct, systematically over-predicted the time durations between adjuster movements and this difference exceeded the envelope of simulations that account for nuclear data and initial core configuration. Sensitivity studies performed to investigate the discrepancies suggest that additional refinements to the RRS emulator used in this work are required to match the station RRS more closely and that the transient evolution is highly sensitive to the initial excess reactivity in the core, which was observed to be lower in the station than in the TRACE simulations. Based on the simulation results the combined impact of the emulator responses, initial average zone levels, and incrementals modelling have a larger uncertainty than those related to nuclear data and initial core burnup distribution.

The Trigger and Application of Black Swan Events: A Case Study of Silicon Valley Bank Failures

On March 10, 2023, Federal regulators shut down Silicon Valley Bank, the 16th-largest bank in the country. As a result of the significant run, the bank was forced to file for bankruptcy. The purpose of this paper is to analyze the borrowing and triggering factors of black swan events by taking the Silicon Valley Bank bankruptcy event as an example, and to discuss the revelations and reflections of black swan events from the perspective of risk management based on the definition and characteristics of black swan events. Black swan events are those rare, unpredictable events with great impact, while bank bankruptcy events imply significant changes in the stability of the financial system. The failure of Silicon Valley Bank exposed the vulnerability of the banking sector and raised depositors' concerns about bank withdrawals and the cash flow crisis of global technology companies. Thus, the failure of Silicon Valley Bank has important lessons for future bank management and regulation. This paper argues that for most people, the failure of Silicon Valley Bank was not a black swan event, but even for many professionals, the impact of bank failures is unpredictable.

Expected impact of the bankruptcy of leading foreign banks on the banking system of Ukraine

The purpose of the article is to study the problems associated with the possible unfolding of the banking crisis in the USA and European countries, the content of state regulatory measures aimed at ensuring the financial stability of Ukrainian banks, which will be implemented consecutively from February 2022, the justification of additional, most urgent measures aimed at overcoming existing problems in the country’s banking system. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. In the course of the research, it was concluded that the bankruptcy of some leading foreign banks should not have a significant negative impact on the banking sector of the Ukrainian economy. The article also discloses the content of state regulatory measures aimed at ensuring the financial stability of Ukrainian banks, which include the implementation of full (regardless of the amount and currency) state guarantee of bank deposits of individuals, providing banks with the required amount of refinancing, a radical increase in the discount rate, active accumulation of international reserves, withdrawal of problem banks from the market, activation of the use of norms of mandatory reservation of funds raised by banks, reduction of the rate on overnight deposit certificates, activation of the work of the Financial Stability Council. The positive consequences of the implementation of a set of measures to support the banking system of Ukraine were determined, in particular: a decrease in inflation rates, strengthening of the hryvnia exchange rate, preservation of profitability of the banking system, gradual restoration of bank capitalization. Problems that require the adoption of additional regulatory measures by the state are highlighted, namely the increase in the share of problem loans and the actual suspension of credit activities of banks. A number of measures are proposed within the framework of improving the current monetary policy of Ukraine: development of the mechanism of “emergency” refinancing of banks in case of rapid spread of crisis phenomena; unconditional adherence to the policy of “expensive money”; limitation of emission and money supply growth rates; restoration of the practice of compulsory sale of a part of the foreign currency earnings of exporters; ensuring further “fine-tuning” of the current method of mandatory reservation of the funds involved; settlement of the “new” NPL management procedure; creation of a specialized state institution for the management of problem assets to accept NPL portfolios of state banks on the balance sheet. The results of the research can be used at the level of the National Bank and the government in the process of forming urgent measures in the field of monetary policy implementation.
 JEL classіfіcatіon: E31, E40, E42, E50, E52, F31, F35

Psychological and demographic predictors of investment in cryptocurrencies during a crisis in the MENA region: the case of Lebanon

PurposeThe purpose of this study is to discover the motivating factors for cryptocurrency investment during an economic crisis in the MENA region, with reference to the economic crisis of 2019–2022, in Lebanon.Design/methodology/approachThe authors used t-test, and logistic regressions on a sample of 254 Lebanese investors to differentiate between cryptocurrency investors, and non-investors. Linear regressions of a subsample of cryptocurrency investors determined the factors that explained increasing cash investment in cryptocurrencies. Data were collected from investors in Lebanon, which could limit the generalization of the research results across the MENA region.FindingsInvestors differed from non-investors in that they were male, owned investments in the stock, bond and commodity markets, had prior investment experience in cryptocurrencies, were risk-takers and had expectations of high returns. Investors increased the dollar investment in cryptocurrencies, if they were male, as they invested more funds in securities, had previously invested in cryptocurrencies and had stronger risk-taking propensity. Expectations of high returns drove investors to cryptocurrencies, but such expectations do not stimulate further cryptocurrency investment.Originality/valueThis study is an initial attempt to comprehend the reactions of investors in the MENA region to a currency crisis that triggered investment in cryptocurrencies following the collapse of fiat currencies, central bank default and restrictions on bank withdrawals.

Євроінтеграційні імперативи врегулювання неплатоспроможності банків в Україні

The aim of the article is to study the economic essence and ways to settle the insolvency of banks in the context of European regulatory imperatives. Not all banks are capable of stable functioning under conditions of economic imbalances, crises and uncertainty, which leads to the withdrawal of banks from the market. The European vector of Ukraine’s development requires the implementation of European rules for resolving bank insolvency in order to reduce the negative consequences of their possible bankruptcy. Attention is focused on the understanding of an insolvent bank as financially unstable. The manifestations of insolvency are defined and it is proposed to distinguish between full and technical (technical default) insolvency of banks. Practical examples of such interpretation are provided, in particular, JSC «JSCB «Arkada» – as an example of a complete default and JSC «Bank Sich» – as an example of a technical default on the realized market risk. The article discloses the essence, factors and signs of insolvency, which are constantly evolving. It is noted that, in fact, insolvency is manifested in the square formed of four concepts – incapacity, non-fulfillment, non-payment, and insolvency. The content of insolvency settlement is disclosed, which provides for the adoption of appropriate measures aimed at preventing and/or overcoming the consequences of the bank’s inability to perform (partially or completely) its functional duties in case of any type of insolvency. Certain stages of bank insolvency and measures of influence have been allocated. In accordance with the European BRRD Directive, the goals and principles of insolvency settlement have been formulated. The objectives must be balanced according to the nature and circumstances of each case, and they also influence the choice of method and tools of settlement. The need to harmonize domestic legislation with European rules is noted. In particular, the BRRD recommends the following settlement tools: asset separation tool, bail-in tool, sale of business tool, bridge institution tool. The article discloses the directions of their implementation in domestic practice.

Financial liberalization and house prices: Evidence from China

I investigate whether financial liberalization can affect house prices. I exploit the 2008 US financial crisis as an exogenous shock that negatively affected foreign banks’ operations in China. Using cross-sectional variation in foreign banks’ establishment and asset value, I document that cities with a higher level of financial openness have more volatile house price movements. I also show that the drops in house price growth rates in 2008 were larger for cities with higher withdrawal or exit rates of overseas banks. I exclude alternative explanations for the negative treatment effect, such as shocks to international trade and local economic conditions in 2008. The evidence suggests a credit supply channel. Further analyses show that the negative effect of financial liberalization on the house price growth rate is more pronounced for more geographically constrained cities.

Multi-physics framework for whole-core analysis of transient fuel performance after load following in a pressurised water reactor

The increasing deployment of renewable energy sources and greater electrification of demand is requiring more frequent use of load following in pressurised water reactors (PWRs) . A limiting aspect with respect to load following is the thermo-mechanical behaviour of the fuel. Hence a greater use of best-estimate multi-physics tools that can more accurately capture such behaviour during load following manoeuvres – in particular, extended reduced power operation (ERPO) – has become important in recent years. To this end, we have developed a coupled, whole-core analysis framework and demonstrated it with a new generic PWR model. The demonstration is for uncontrolled RCCA bank withdrawal at power (URWAP) faults following a period of ERPO, since such scenarios are often limiting with respect to fuel integrity. The coupled, whole-core analysis framework that was developed consists of the PARCS neutronics code, the RELAP and CTF thermal–hydraulics codes, the ENIGMA fuel performance code, and the NEXUS platform for whole-core fuel performance. The generic PWR model constructed is for a 1240 MWe plant with a modern core design (maximum assembly burnup of 51.0 GWd/tHM, cycle length of 16 months, and an average fuel residence time of 2.3 cycles per assembly). Previous work in the literature on URWAP faults has focused on coupled neutronics and thermal–hydraulics analysis, with fuel performance assessment and the effects of load following neglected. These shortcomings are therefore addressed here. From a fuel performance perspective no fuel was predicted to fail due to pellet-clad interaction (PCI). Of the remaining failure indicators, margin to clad yield stress was most limiting, although no failure was predicted in all cases under the scenarios considered.

CLEANSING OF THE UKRAINIAN BANKING SYSTEM IN THE LIGHT OF SUSTAINABLE DEVELOPMENT GOALS

Abstract. The cleansing of the Ukrainian banking system, performed in 2014—2016, showed the purpose of the National Bank to break the old models of banking and ensure sustainable development of the banking system and Ukraine as a whole. At the same time, the cleansing of the banking system was revolutionary, affecting not only the owners but also the broad sectors of society and the business entities, who suffered losses. Due to high relevance and social impact, discussions about the root causes, methods, and consequences arose. This article aims to establish the compliance of cleansing the banking system of Ukraine with the goals of sustainable development. In this study, we considered the provisions of economic theory and the theory of banking systems, taking into account the spirit, ideals and principles of sustainable development. This study has the structure as follows. Firstly, we performed a theoretical analysis of the evolutionary and revolutionary types of banking reforms. Then we conducted a historical-economic analysis of the events that preceded the beginning of the cleansing of the banking system. In the central part, we analyzed the generalized causes and specific problems that led to the withdrawal of banks from the market in the primary wave of cleansing. Finally, we singled out three groups of NBU’s comments on the liquidation of specific banks. We established their close connection with the implementation of task 8.3 of the eighth Sustainable Development Goal. We pointed out some discrepancies between the reasons for the liquidation of individual banks and the comments of the NBU. Therefore, we have suggested combining comments into groups which more clearly reflect liquidation reason. Such groups include non-compliance with stakeholders, lack of bank recovery strategy and resources, and misbehaviour by shareholders, insiders, and related parties. Finally, we reaffirmed the revolutionary nature of the reform. We proved that, despite the losses, its absence, in the longrun, could have made it impossible to meet Task 8.3 of the Eighth Sustainable Development Goal. Promising are as of further research are comparing the procedure and results of cleansing the banking system in Ukraine and foreign countries. Keywords: banking system, cleansing, liquidation, banking reform, sustainable development. JEL Classification Q01, G21 Formulas: 0; fig.: 0, tabl.: 0, bibl.: 28.

Judicial procedural issues of choosing an effective method of legal protection in civil cases

Keywords: civil procedural protection, court effective way of protection, civilprocess
 The article is devoted to the study of Civil Procedureaspects of the court's application of a proper and effective method of protecting aviolated right within the frame of its own judicial discretion. Attention is paid to thestudy of the legal nature of civil protection, existing doctrinal positions, as well as thelegal and regulatory environment. The features of the exercise of discretionary powersby the court regarding the use of an effective method of protecting violated privatelaw have been established. It is indicated that the court is empowered to choose an effectivemethod of legal protection exclusively within the limits of the statement ofclaim — claims are detailed. It is emphasized that when choosing an effective methodof protection, the principle of the rule of law must be observed, in accordance with theprovisions of Article 10 of the Civil Procedural Code of Ukraine (“CPCU”). This meansthat an effective method of legal protection must be correlated with the provisions ofthe Convention for the protection of human rights and fundamental freedoms and thecase law of the European Court of Human Rights. This universal provision applies toall cases of claim proceedings, namely the claim, which are decided by the rules ofcivil procedure. The peculiarity of the court's use of an effective method of protectionin civil cases is that it can choose an effective method of legal protection only in courtcases in which the claim is considered, as well as when the law or agreements do notdetermine the effective method of legal protection. On the basis of the conducted scientificresearch, the author has developed own gradation of legal criteria of choice bycourt of an effective way of legal protection at consideration of civil cases. Such a gradationis universal for all cases considered by the court under the rules of civil procedure.Exceptions to the above regarding the application of a specific method of protectionare cases related to compensation for damage caused to an individual as a resultof withdrawal of an insolvent bank from the market or liquidation of the bank.

The boundaries of the normative regulation of the system of guaranteeing deposits of individuals

The purpose of the work is to determine the boundaries of regulatory regulation of the deposit guarantee system of individuals, the prospects for their changes, as well as the feasibility of the powers of the Fund. This legal consolidation allows us to conclude that the Fund is not a property management body (in particular, cash), so the existence of power to regulate public relations within the guarantee system is unjustified, because it has functions, not authority, is an institution, and not a body that manages property (in particular, like a state enterprise in terms of economic management – Part 1 of Article 74 of the Economic Code of Ukraine), and does not implement public policy. So, the Fund actually combines in one person the function of accumulation and management of funds, as well as regulates the activities of banks in relation to these relations. This approach is contrary to Directive 2014/49/EU, which distinguishes between such institutions. In this respect, it should be noted that this Directive 2014/49/EU is an important tool for achieving the internal market in terms of both freedom of establishment and freedom to provide financial services in the field of credit institutions, while increasing the stability of the banking system and depositors (p. 3 of Preamble). That is, it is a search for economic rather than administrative mechanisms for the existence of the system. There are considerations about the limits of regulatory powers by the Fund, because in fact it is a structural regulation of the relationship of guaranteeing deposits of individuals. Moreover, given the functions of the Fund, defined in Art. 4 of the Law № 4452, the regulation of the participation of banks in the system of guaranteeing deposits of individuals is only a small component in the activities of this institution. Moreover, Law № 4452 additionally contains a section devoted to the regulatory activities of the Fund. Without detailing the rules of this section, we should focus only on its hall provisions. Thus, according to Part 1 of Art. 30 of the Law № 4452 The Fund regulates the activities of banks by: 1) adoption, within the limits of its powers, of normative legal acts obligatory for execution by banks; 2) exercising control over the fulfillment of banks ’obligations in connection with their participation in the deposit guarantee system for individuals; 3) withdrawal of insolvent banks from the market; 4) in other forms provided by this Law. Summarized that the trend of development of deposit guarantee relations is to strengthen the administrative influence of the Fund on the system, as well as giving this institution power in terms of regulation, which does not meet modern world trends. Under such conditions, the Fund can only have an economic impact on the deposit guarantee system, in particular in terms of proper preservation and accumulation of funds, while regulatory regulation should be concentrated exclusively within the powers of the National Bank of Ukraine. Key words: normative regulation, deposit guarantee fund, economic regulation, deposit guarantee system of individuals, administrative regulation, normative-legal regulation.

The level of financial inclusion in Ukraine: Measuring access, quality, and usage of financial products and services

While financial inclusion is seen as a goal of socio-economic development, there is still no clear understanding of how to measure it. Following this concern, the paper deals with the computation of the financial inclusion index of the Ukrainian economy using an annual dataset spanning from 2008 to 2020 and following the Sarma methodology. The object of the study is a set of indicators of usage, access and quality of financial products and services. The obtained results demonstrate the medium level of financial inclusion. The improvement of financial inclusion is observed in 2012, 2013, 2020 (namely 0.55 – 0.56 in the range of 0 and 1). From 2015 (0.38) till 2018 (0.39), the revealed downward trend affirms that the withdrawal of banks from the market has deteriorated the level of quality and usage of financial products and services. Financial inclusion declined during the cleaning up of the banking system in 2014–2016, just as it did after the global financial crisis in 2009–2010. Despite the development of the payment infrastructure, there is a need to diversify access, increase quality, and quicken the usage of financial products and services due to existing distrust in national financial institutions. Improving financial literacy and consumer protection, and closing regulatory gaps in the non-banking sector are seen as ways to enhance financial inclusion. Thus, financial regulators should establish an upward trend in financial inclusion that will ensure full access to formal financial services and will not adversely affect the stability of financial system.

НАПРЯМИ УДОСКОНАЛЕННЯ ДІЯЛЬНОСТІ ФОНДУ ГАРАНТУВАННЯ ВКЛАДІВ ФІЗИЧНИХ ОСІБ: ЕКОНОМІКО-ПРАВОВИЙ АСПЕКТ

Досліджено особливості діяльності Фонду гарантування вкладів фізичних осіб у системі гарантування вкладів фізичних осіб.
 Проаналізовано повноваження Фонду гарантування вкладів фізичних осіб. Визначено, що його виконавча дирекція здійснює повноваження у сфері забезпечення діяльності Фонду, щодо джерел формування коштів Фонду, у сфері забезпечення відшкодувань за вкладами, у сфері регуляторної діяльності, у сфері виведення неплатоспроможних банків з ринку. Запропоновано повноваження адміністративної ради Фонду гарантування вкладів фізичних осіб поділити на функціональні, погоджувальні і розпорядчі.
 З’ясовано проблеми формування ресурсної бази Фонду гарантування вкладів фізичних осіб. Наголошено, що розширення джерел формування коштів Фонду безпосередньо пов’язано з колом учасників системи гарантування вкладів фізичних осіб. З метою збільшення коштів Фонду гарантування вкладів фізичних осіб запропоновано включити до складу учасників Фонду небанківські фінансові установи.
 Розглянуто окремі аспекти контролю за діяльністю Фонду гарантування вкладів фізичних осіб. Наголошено, що річний звіт Фонду потребує вдосконалення. Запропоновано закріпити форму річного звіту Фонду в законодавстві та визначити такі його розділи: основні показники діяльності Фонду у звітному періоді, внутрішнє управління Фонду, законодавство та регуляторна діяльність, інформування громадськості, аналіз банківського сектору, регулятивна діяльність Фонду, управління фінансами, виведення неплатоспроможних банків з ринку, захист інтересів вкладників, фінансова звітність Фонду.
 Сформульовано напрямами удосконалення діяльності Фонду, а саме: перегляд повноважень Фонду в частині здійснення контролю за проблемними банками, розширення кола суб’єктів та об’єктів системи гарантування вкладів, удосконалення контролю за діяльністю Фонду, запровадження нових механізмів здійснення виплат відшкодування вкладникам неплатоспроможних банків, розширення переліку джерел формування коштів Фонду.

Ліквідація неплатоспроможного банку за участю інвестора: організація, процедури, переваги

The article is aimed at systematizing and identifying the features, advantages and disadvantages of various ways of withdrawing insolvent banks from the market, as well as studying the consequences of their implementation in domestic practice. Liquidation of a bank with reimbursement of all funds on deposits of individuals by the Deposit Guarantee Fund (DGF) is simple and affordable, but the most expensive and inefficient way. It is noted that at present the Fund has liquidated more than 50 banks, now the process of liquidation of 48 more banks is continuing. The most promising are two methods that are implemented with the participation of the investor through the tender procedure. This is the creation of a transitional bank with the subsequent selling to the investor and the selling of the bank as an integral unit to the investor. The implementation of these methods involves the search for an investor and the receipt of investment resources, which always appears positive. Therefore, the article describes in detail the specifics of these restorative, or sanitation, methods of withdrawal of an insolvent bank, analyzes their advantages and weaknesses. Organizational procedures for the application of these methods of withdrawal of insolvent banks from the market are generalized and structured. It was emphasized that in the process of withdrawing an insolvent bank from the market due to the selling, the financial burden on the DGF is decreasing. The Fund does not reimburse the funds of individual depositors, since all obligations under guaranteed deposits are transferred to either the transitional bank or the new owner of the bank in full. It is substantiated that these methods require modernization, updating and a closer definition of the relevant organizational and procedural components. This will increase the efficiency of approaches for further use, and most importantly, for preventing the eventual adverse consequences.

Консолідація банківського сектора: детермінанти та наслідки

The article aims at substantiating the theoretical and methodological foundations of research in bank consolidation and assessing its consequences in order to identify the relationship between consolidation and the banking market structure. The main preconditions and priorities of consolidation are systematized and generalized, taking into account the theory of financial integration and synergetic interaction. This approach will contribute to deeper understanding of the motives and trends of consolidation in modern conditions. It is noted that the transnationalization and concentration of capital form the basis for market consolidation, which goes through a certain life cycle, the latter being specified by the authors. It is concluded that the universal, integrated nature of financial business and the formation of financial business ecosystems is becoming more widespread. The main changes in financial mediation are identified. Statistics of banking concentration in Ukraine is given. The dynamics of concentration ratio for the period from January 1, 2000 to August 1, 2020 was analyzed, revealing that the market is moderately concentrated. It is stipulated that the higher the combined share of the five major banks in the banking sector, the less likely a domestic merger and acquisition is. Accordingly, the domestic banking market, compared to European ones, has significant potential. It is concluded that the high values of profitability indicators speak of excess demand over supply in the banking market; thus, competitive intensity under such conditions is minimal, even with the withdrawal of most banks from the market. Thus, competition is only declared. In the future, we should expect increased non-interest rate competition. It is noted that competitive intensity depends on the concentration, dynamics and profitability of the banking market. Competition assessment, carried out using non-structural measures, H-statistics, Boone indicators and Lerner index, showed that, since the an individual bank does not build up its range of activity through consolidation, or by redistributing its market share among participants, but due to the growing demand for banking services, and remote services in particular, competition is actually reduced. The research confirmed that the processes of concentration, consolidation and competition are interconnected, and this connection should be identified to better understand the formation of the banks’ functional strategy and their choice of the business model.

The Weight of Compliance: Anti-Money Laundering Enforcement, Bank Composition, and Lending

We exploit a tightening of anti-money laundering (AML) enforcement that imposed disproportionate costs on small banks to examine the effects of a change in bank composition towards larger banks on real economic outcomes. In response to intensified AML enforcement at the end of 2012, counties prone to high levels of criminal activity in the form of money laundering experience a withdrawal of small banks and increased activity by large banks. This change in bank composition results in an increase in the number of small establishments and real estate prices. Wages and employment increase in the non-tradable sector, consistent with a household demand channel. Increased secured lending through mortgages is one potential driver of this result, whereas lending through the Community Reinvestment Act (CRA) and the Small Business Administration (SBA) are not.

THE HISTORY OF FINANCIAL SYSTEMS AND MONETARY CIRCULATION IN EUROPE IN THE ERA OF THE GREAT FRENCH REVOLUTION AND THE NAPOLEONIC WARS (LATE XVIIITH – EARLY XIXTH CENTURY)

The article is devoted to the consideration of the financial policies of France, Britain, Austria and Russia in the late XVIIIth and early XIXth century in connection with the release a significant amount of paper currency (bank notes) into circulation in the era of the Great French Revolution and the Napoleonic Wars. The article focuses on the monetary policy conducted by the government of Alexander I.The adoption of bank notes almost everywhere in Europe led to a change in their function. In addition to covering extraordinary military expenses, the paper currency had a new function – they were used as an instrument of financial policy and state regulation of the national monetary system. Mass issue of bank notes led to their depreciation. Although stabilization of currency circulation had some differences in the abovementioned countries, it was mostly based on the withdrawal of bank notes from circulation. The Russian Empire believed it was preferable to use the experience of the Habsburg Monarchy. The strategy of the Austrian government was devoted to complete withdrawal of one part of the bank notes and replacement of the other one with private bank notes in form and status, however state participation was preserved in the capital of the Privileged Austrian National Bank.

ВЗАЄМОЗВ’ЯЗОК РОЗВИТКУ БАНКІВСЬКОГО СЕКТОРУ ТА ЕКОНОМІЧНОГО ЗРОСТАННЯ КРАЇНИ

Банківський сектор є невід’ємною частиною сучасної економічної системи будь-якої розвиненої країни. У зв’язку з цим постає аналітичне питання у причинно-наслідкових зв’язків між станом банківського розвитку та економічним благополуччям країни. У ході нашого дослідження було здійснено аналіз наукової літератури за проблематикою взаємозв’язку між станом розвитку банківського сектору та економічним зростанням країни, за результатами якого висунуто гіпотезу, що розвиток банківського сектору позитивно впливає на економічне зростання. У ході дослідження визначено головні канали впливу банківського сектору на економіку країни. На основі статистичних даних Національного банку України проведено аналіз динаміки показників інтеграції, інклюзивності та фінансової стабільності банківського сектору України. У результаті з’ясовано, що стан банківського сектору субадаптивно впливає на розвиток економічної системи в цілому. Визначено, що значна інтеграція банківського сектору в економіку стимулює до швидкого проникнення кризових явищ географічно, структурно та суб’єктно. Проведено кластерний аналіз динаміки неплатоспроможності банків відповідно до причин їхнього банкрутства. Виявлено, що найбільші проблеми в банках були спричинені втратою ліквідності та капіталу у зв’язку з побудовою неефективної системи управління ризиками, яка, у свою чергу, залежить від якості побудови системи корпоративного управління. Досліджено процес виведення банків з ринку і розглянуто позитивні і негативні аспекти цього процесу. Здійснено оцінку впливу кризових явищ у банківському секторі в розрізі приватного і державного сегментів економіки України. З’ясовано, що загальні втрати приватного сектору є значними, однак найбільше навантаження лягло на державний бюджет України та пов’язане значною мірою з націоналізацією АТ «ПриватБанк».

Isolating small Belize banks from the global system

Purpose The purpose of this paper is to increase insights into the withdrawal of correspondent banks (CBs) from developing markets. Design/methodology/approach A case study of a small offshore bank in Belize was conducted using information collected from the bank’s CEO and compliance officer through semi-structured interviews. The interview data were triangulated with data from relevant laws in Belize and literature review. Findings Compliance with international standards is onerous on small banks, but necessary to level the playing field and protect the global system. Practices within small banks effectively combat money laundering, but remain unsung because size and geographic location of banks influence perceptions about the banks. The approach to de-risking was overreaching and unfair. Research limitations/implications The findings are specific to one offshore bank, but create awareness of Belize banking practices to mitigate money laundering risks. The results could influence regulators, international organizations and CBs to pierce through to the bank level to assess risks and determine CB relationships. Originality/value This is the first study providing firsthand accounts of efforts by a small Belize bank to comply with international standards and remain connected to the global financial system. The study highlights a critical weakness in employing a risk-based approach to rate banks.

Impact of bank withdrawals taxation on cash holdings, interest rates, inflation and bank deposits: Empirical evidence from Pakistan

To avoid debt burdens and to meet budgetary expenditure within internal resources leads to introduction of bank withdrawal taxation in Pakistan. The research has been carried out to empirically investigate the impact of bank withdrawal taxation on cash holdings, bank deposits, inflation, borrowing and lending rates. The withdrawal taxation was imposed in 2006 therefore the study analysis period has been from 2006 to 2014. The complex relationship among variables leads to analyze the data through VAR. The empirical findings through Vector auto regression (VAR) and impulse response suggests the presence of disintermediation in Pakistani economy. The disintermediation in the economy is captured through the study findings that there is increase in the cash holdings during the study period and reduction in bank deposits. The monetary variables such as inflation, borrowing and lending rates are reduced due to imposition of bank withdrawal taxation.