Innovative Instruments and Legal Mechanisms of Bank Capitalization: National Features and World Trends

Authors

1 Kyiv National University of Trade and Economics, Ukraine, Kyiv, Ukraine

2 Cherkassy Educational-Scientific Institute of Banking University, Cherkassy, Ukraine

3 V.N. Karazin Kharkiv National University, Kharkiv, Ukraine

10.22094/joie.2020.677865

Abstract

The article investigates the role of bank capital in financing reproduction processes and increase of economic growth indicators, considers the essence of the concept of “bank capitalization”, determines the structure and main sources of bank capital increase. Taking into account the fact that Ukraine and Poland have similar vectors of economic development, the current practices of increasing the bank capitalization, as well as the peculiarities of the action of the governments of the two countries in the negative financial and economic crisis, positive and negative aspects of regulatory policies aimed at restoring financial stability and resistance of the banking sector of Ukraine and Poland have been identified. The study of legal aspects of regulating the capitalization of banks allowed to generalize the requirements for the level of capitalization by the central banks of Ukraine and Poland, as well as to determine the features of regulating the capital adequacy of banks by supervisors in the context of Basel III. The structure and dynamics of the capital of banks of Ukraine and Poland during 2012-2019 have been analyzed. The relationship between the level of capitalization and the level of economic development of the country has been revealed. The peculiarities of the recapitalization of banks with the participation of the state have been clarified. The main attention has been paid to the complex analysis of the experience of capitalization of Polish banks, and the ways of its use in Ukraine have been substantiated.

Graphical Abstract

Innovative Instruments and Legal Mechanisms of Bank Capitalization: National Features and World Trends

Keywords

References

Aiyar, S., Calomiris, C. W., & Wieladek, T. (2014). Does Macro Prudential Regulation Leak? Evidence from a UK Policy Experiment. Journal of Money, Credit and Banking, 46(s1), 181-214. https://doi.org/10.1111/jmcb.12086.
Arbuzov, S. H., Kolobov, Y. V., Mishchenko, V. I., & Naumenkova, S. V. (2011). Banking encyclopedia. Kyiv: Znannia.
Babenko, V., Perevozova, I.,   Kravchenko, M., & Krutko, M., Babenko, D. (2020). Modern processes of regional economic integration of Ukraine in the context of sustainable development. The International Conference on Sustainable Futures: Environmental, Technological, Social and Economic Matters (ICSF 2020), 166. https://doi.org/10.1051/e3sconf/202016612001.
Bilovodska, O. A., Haidabrus, N. V., & Ruban, D. A. (2017). An analytical study on logistics outsourcing impact on logistical service quality in supply chains (case study: industrial enterprises of Sumy region). Problems and Perspectives in Management, 15(3), 201-211. https://doi.org/10.21511/ppm.15(3-1).2017.04.
On access to the activity of credit institutions and the prudential supervision of credit institutions and investment firm, Directive 2013/36/EU (June 26, 2013).
Gryshchenko, I., Chubukova, O., Bilovodska, O., Gryshchenko, O., & Melnyk, Y. (2020). Marketing-oriented Approach to Evaluating the Strategy of Distribution Management for Innovative Products in Logistics. WSEAS Transactions on Environment and Development, 16(37), 371-383. https://doi.org/10.37394/232015.2020.16.37.
Kovalenko, V. V., & Cherkashina, K. F. (2010). The capitalization of banks: assessment methods and directions of increase: monograph. Ukrainian Academy Of Banking.
Martini, L., Stegemann, U., Windhagen, E., Heuser, M., Schneider, S., Poppensieker, T., Fest, M., & Brenna, G. (2009). Bad banks: finding the right exit from the financial crisis. Madrid, Spain.
Procedure for acquiring bank shares in exchange for domestic government bonds, Resolution № 632 (November 19th, 2014). https://zakon.rada.gov.ua.
Mishkin Frederic, S. (Ed.). (2012). The economics of money, banking, and financial markets. Pearson.
On bringing the authorized capital of banks in line with the minimum set amount, Resolution № 464 (August 06, 2014). http://zakon2.rada.gov.ua/laws/show/v0464500-14.
On approval of Amendments to the Instruction on the procedure for regulating the activities of banks in Ukraine, Resolution № 148. (December 22, 2018). https://zakon.rada.gov.ua/laws/show/v0148500-18.
Perevozova, I., & Daliak, N., Babenko, V. (2019). Modeling of Financial Support for the Competitiveness of Employees in the Mining Industry. CEUR Workshop Proceedings, 2422, 444-454.
Piatkowski, M. (2012). Commercial Banks in Action during the Crisis: The Case of Poland (PKO Bank Polski). Washington.
Podgorna, I., Babenko, V., Honcharenko, N., Sáez-Fernández, F. J., Fernández, J. A. S.,, & Yakubovskiy, S. (2020). Modelling and Analysis of Socio-Economic Development of the European Union Countries through DP2 Method. WSEAS Transactions on Business and Economics, 17, 454-466. https://doi.org/10.37394/23207.2020.17.44.
Narodowy Bank Polski (2012-2018). Financial Stability Report December 2012–2018. Warsaw.
The Banking Act, 128 (August 29, 1997). https://www.nbp.pl/homen.aspx?f=/en/aktyprawne/prawo.html.
On Banks and Banking, The Law of Ukraine № 2121-III (December 07, 2000). http://zakon3.rada.gov.ua/laws/show.
On Specifics of Sale of State-Owned Blocks of Shares in the Statutory Capital of Banks where the State Took Part in Capitalization, The Law of Ukraine №4524-VI (March 15, 2012). http://zakon1.rada.gov.ua/laws/show/452417.
Rose, P. S. (2002). Commercial Bank Management. McGraw - Hill/Irwin.
Shkarlet, S., & Dubyna, M. (2016). Features of the cognitive approach application to the essence of the financial services market identification. Economic Annals-XXI, 158(3-4 (2)), 70-74. https://doi.org/10.21003/ea. V158-16.
Shkarlet, S., Dubyna, M., Hrubliak, O., & Zhavoronok, A. (2019). Theoretical and applied provisions of the research of the state budget deficit in the countries of Central and Eastern Europe. Administration & Public Management Review (32), 120-138. https://doi.org/10.24818/amp/ 2019.32-09.
Shkarlet, S., Vovk, V., Dubyna, M., & Noga, M. (2019). Financial service markets of Eastern Europe: a compositional model. Economic Annals-XXI, 176(3-4), 26-37. https://doi.org/10.21003/ea.V176-03
National Bank of Ukraine (2013-2019). Ukrainian banks' financials as of January 1, 2013–2019. https://bank.gov.ua/ua/statistic/supervision-statist/data-supervision.
On simplification of reorganization and capitalization of banks, The Law of Ukraine № 1985-VIII (March 23, 2017). https://zakon.rada.gov.ua/laws/show/1985-19?lang=en#Text.
On Top-Priority Measures for Preventing Negative Consequences of the Financial Crisis and Amendments to Some Pieces of Legislation of Ukraine, The Law of Ukraine № 639-VI (October 31, 2008). http://zakon2.rada.gov.ua/laws/show/63917. 
Zahorodnii, A. G., & Voznyuk, G. L. (2005). Financial and economic dictionary. Lviv: National university «Lviv polytechnic».
Journal of Optimization in Industrial Engineering
Volume 14, Special Issue - Serial Number 29
Winter and Spring 2021
Pages 167-174

Files

Share

How to cite

Statistics