Analysis of resource capacity of the banking system in times of crisis
DOI:
https://doi.org/10.35774/visnyk2017.01.063Keywords:
savings, deposit, bank, guaranteeing, depositor.Abstract
In any state banking system always acts as a catalyst of economic growth. At the current stage, in times of crisis over 2014-2016, effective functioning of the banking system and the system of guaranteeing deposits has become an important concept. The research objectives include analyzing resource capacity of the banking system and considering a range of problems related to guaranteeing deposits during the period of 2014–2016. The authors analyze the data on the amount of individuals’ deposits in the banks participating in the Deposit Guarantee Fund. The impact of reducing banks’ deposit base on Ukraine’s economy and a negative trend in savings is determined. The ratio of savings to GDP in a number of countries, including Ukraine, is analyzed. Particular attention is paid to the importance of money transfer from abroad. An emphasis is placed on the correlation between fluctuations of foreign currencies and deposits. The dynamics and structure of liabilities of the banks participating the Deposit Guarantee Fund are scrutinized. It is concluded that the share of retail deposits has been reduced. The dynamics of lending and the share of loan arrears are provided. Furthermore, the dynamics of loans issued by the National Bank of Ukraine to Ukrainian banks is described. Based on the research findings, a set of recommendation related to the formation and use of funds is developed. It is stressed that the further improvement of the banking system and the system of guaranteeing deposits is among priorities in times of crisis.References
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