Экономические науки/1.Банки и банковская система

 

PhD Olga Stepanenko

Vadym Hetman Kyiv National Economic University, Ukraine

Perspective  Directions of the Banking System’s Stabilization

 

Financial crises are very distinctive for the modern economics. Now there are banking crises, currency crises, bubbles and systems crises [1]. Macroeconomics factors that can be used to describe the banking system’s position are considered in this work. Strategy and the tools that can be used to stabilize the banking system are identified in the work.

Crises are enough investigated in the world science literature. But recent research of the identifying the causes of the crises and the ways to overcome them had contradictory results [1, 2, 3, 4].

The identifying of the fundamental macroeconomics factors that can be used to determine the dynamics of banking systems and financial markets have the particular importance for the studying of the causes and consequences of the global financial crises. This actual problem was stimulated the interest of scientists, banking analysts, financiers to research the banking and macroeconomics indicators for the stabilization of the banking systems.

Modern research of the banking systems and financial markets are based on the use of a wide range of mathematical tools: classical methods of mathematical statistics (correlation-regression analysis, the method of least squares, spectral analysis etc.), modern methods of mathematical modeling and statistics (estimation system theory, neural networks, methods of analysis of chaotic oscillations etc.), dynamic models based on systems of equations in partial derivatives, system analysis models, discrete mathematics, game theory.

In the banking sphere the problem of the selection of the basic macroeconomic indicators and the creation of the adequate models are complicated by the next facts. The banking system is a very complex object composed of subsystems with different characteristic parameters between which there are large number of heterogeneous connections. Banking system development consists of processes that are significantly dependent of many external factors: legal, economic, social, political etc. Many of these factors are difficult to formalize and establish the appropriate macroeconomic indicators. Therefore the methods of system analysis are recommended to use. The most important results in this area related to operations research. This approach is based on the quantitative mathematical methods to evaluate the decisions making. But the application of quantitative methods is possible only when adequate mathematical models are existed. And the determination such models for the controlling and stabilization of banking system are quite complicated.

Therefore the dynamic stochastic model is proposed. The banking system includes a set of interrelated microeconomic and macroeconomic indicators in this model. This model allows us to investigate the emergent properties of the system which arise at the macro level. But this model reduces the possibilities for considering the specific characteristics of particular commercial banks and interbank processes of their interaction. But the last deficiency isn’t especially important in the modeling of the banking system’s development and stabilization.

Endogenous variables in this model are divided into four groups – variables of  liabilities, variables of assets, variables of costs, variables of income.

Variables of liabilities are business accounts, bank accounts, accounts of individuals, individuals' deposits, deposits of enterprises, the clear involvement means, attracted to banks issued securities and capital funds, retained earnings, other liabilities.

Variables of assets are correspondent account in National Bank, NOSTRO correspondent accounts, monetary assets and precious metals deposits in the National Bank, loans to real sector, loans to banks, loans to the public, credit debts,  required reserves of the NBU, securities and other assets.

Variables of costs are the costs for corporate accounts, the costs for bank accounts, the costs for retail deposits, the costs for enterprises’ deposits, the costs for interbank loans, the costs for issued securities, the costs for the reserve forming for possible losses on the loans and other expenses.

Variables of income are income from correspondent accounts in banks, income from deposits in the Bank, the income from loans to real economy, the income from loans to individuals, income from loans to banks, interest income from securities, net income from the revaluation of the currency, net income from revaluation of securities.

Exogenous variables in this model are  the average index rate of U.S. dollar, the index of Interbank Currency Exchange, the index of the chain of inflation, the level of the individuals income, the cash outside of banks, the level of the output industrial production, the index of the producer prices, norm of obligatory reserves on deposits in foreign currency, the standard required reserves on individuals deposits in national currency, the standard required reserves on enterprises deposits.

The banking system has a hierarchical structure. Some elements of the banking system's model have vertical-horizontal structure. Therefore the model of the banking system may be implemented as a result of the development potential [5]. So the result of the potential of the banking system’s development is

where , - functional of the system potentials , - economic potential, - potential of the bank, - innovative potential, - socio-economic potential,  - the potential political, - legislation potential,  - financial potential,  - the potential of the environment. Then determines the instantaneous state of the banking system at the moment ,  where  - the vector of the elements of the potentials’ system,  - the vector of the variables (endogenous and exogenous), which varies with the structure and content over time.

This conceptual model of development and stabilization of the banking system takes into account the impact of the external environment and changing the relations between structural parameters caused by the banking technologies’ life cycle. So the potential of the banking system’s development is defined as the abilities of the potentials’ system and their actions to generate results by using the banking processes. The main components of the model of development and stabilization of the banking system are banking system’s capabilities and innovation potential.

So the problem of the research of development and stabilization of the banking system is very urgent for today. It is necessary use the tools of mathematical modeling to solve it. With these models it is possible to carry out experiments to investigate the influence of various parameters on the system state and identify strategies to obtain the best results for the banking system's stabilization.

 

 

References:

1.  Інноваційні технології антикризового управління економічними системами: монографія/ Рамазанов С.К., Надьон Г.О., Кришталь Н.І., Степаненко О.П., Тимашова Л.А.; під ред. проф. С.К. Рамазанова. – Луганськ-Київ: вид-во СНУ ім.В.Даля, 2009. – 584 с.

2.  Батковський В.А. Доларизація економіки України та її наслідки для економічного розвитку// Теорії мікро-макроекономіки, 2008. - №29. – С.78-86.

3.  Домрачев В.М., Кульпінський С.В. Банківські кризи: причини виникнення і передумови подолання// Вісник Київського національного торговельно-економічного університету, 2005. - №5. – С.10-15.

4.  World economic outlook. Crisis and Recovery (April 2009). – Washington DC: International Monetary Fund, 2009. – 195 p.

5.  Степаненко О.П. Моделювання ризиків банківської системи на макроекономічному рівні// Соціально-економічні проблеми сучасного періоду України: стабілізація та євроінтеграція: (збірник наукових праць)/ НАН України. Ін-т регіональних досліджень. – Львів, 2010. – Вип.1 (81). - С.290-299.