Financial technologies for bank financial stability management in economical turbulence conditions

Keywords: financial instruments, financial engineering, financial technologies, potential Benefits, potential risks, process approach

Abstract

The development of the global economy is characterized by an increase in turbulence and the restoration of a cyclic crisis component of development. An important driving force for the development of the economy is the financial stability of the bank, which manifests itself at all levels – from the micro level to the global economic system. The market of banking services is the most dynamic segment of the financial market, where the number of subjects and spectrum of products, the level of service and technologies is constantly changing.

The priority instrument for managing the financial stability of the bank in the conditions of turbulence of the economy is a financial engineering, which is a system of synergistic functioning, pre-developed and implemented combinations and processes (namely the interaction of financial innovations, financial technologies and financial instruments) in financial management of the bank due to the release of innovation resource reserve. to ensure the financial stability of the bank.

Financial innovations include financial instruments and financial technologies. Financial technologies are technologically supported by financial innovations, which can lead to new business models, programs, processes or products that have a significant impact on financial markets and institutions that provide financial services.

It is proposed to manage the financial stability of the bank in the conditions of turbulence of the economy of Ukraine to introduce a process approach that is focused on improving the motivation of banking institutions and a clear distribution of their responsibilities; achievement of internal transparency for guidance, obtaining information in real time due to the development and strengthening of the system of current and prospective control; improving the quality and predictability of the results of work; providing trust of stakeholders to banking institutions and confidence in the financial stability of its functioning; minimization of expenses and reducing the terms of organization of technological cycles of banking operations.

In order to ensure the financial stability of the bank on the basis of financial technologies, the state of turbulence of the economy should be taken into account, react promptly to its changes that require enhanced control.

Author Biography

Maksim Babenko, University of Banking

Postgraduate student

References

Azarenkova G. M., Golovko O. G., Smirnov V.V. (2011). Financial stability of bank development: monograph. Nation. Bank of Ukraine, UN-T Bank. affairs. Kyiv: UBS NBU, 2011. 191 c.

Brauers Willem Karel M., Ginevičius Romualdas, Podviezko Askoldas (2014). Development of a methodology of evolution of financial stability of commercial banks. Panoeconomicus. 2014. Vol. 61 (3). PP. 349-367.

Chmutova I. M. (2016). Selection of special technologies of financial management of the bank taking into account the cyclical development of its development. Development economy. 2016. No. 3. P. 58-64. Available from: http://nbuv.gov.ua/ujrn/ecro_2016_3_10.

Dieieva K. A, Leiko O. S. (2012). Resources of the Business Development Strategy: Finance Management – Banking Aspect. Responsible economy. 2012. Vip. 4. P. 118-122. Available from: http://nbuv.gov.ua/ujrn/viec_2012_4_41.

Dotsenko Inna (2019). The Conceptual Steps for Determination the Essence of Concept of Bank Financial Stability. Modern Economics. 2019. Vol. 13. PP.79-84.

Ignatenko A. V. (2013). Principles of Finance Management of the Modern Bank: Content, Specificity, Provision Problems. Scientific works of MAUP. 2013. Vip. 4. P. 169-173. Available from: http://nbuv.gov.ua/ujrn/npmaup_2013_4_32.

Ignatenko A. V. (2014). Analysis in the process of financial management as a means of ensuring the functioning of banks. Scientific works of MAUP. 2014. Vip. 1. P. 176-180. Available from: http://nbuv.gov.ua/ujrn/npmaup_2014_1_32.

Kleftouri N. (2017). European Union Bank Resolution Framework: can the objective of financial stability ensure consistency in resolution authrities’ decisions? ERA Forum. 2017. № 18 (2). PP. 263-279.

Kondrat I. Yu., Topiy I.I., Kondrat I. Yu. (2014). Anti-crisis management of finances of banks on the example of PJSC "BROKBUSINESSBANK". Bulletin of the National University "Lviv Polytechnic". Management and Entrepreneurship in Ukraine: Stages of Formation and Development Problems. 2014. No. 797. P. 461-469. Available from: http://nbuv.gov.ua/ujrn/vnulpm_2014_797_63.

Lisenok O. V. (2013). Strategic Approach to Bank Finances. Formation of market relations in Ukraine. 2013. No. 7. P. 69-75. Available from: http://nbuv.gov.ua/ujrn/frvu_2013_7_18.

Lisenok O. V. (2013). The Bank's Finance Management System. Formation of market relations in Ukraine. 2013. No. 6. P. 116-121. Available from: http://nbuv.gov.ua/ujrn/frvu_2013_6_27.

National Bank of Ukraine (2018). Regulations on the organization of risk management system in banks of Ukraine and banking groups. National Bank of Ukraine. Decree from 11.06.2018 № 64. Available from: https://zakon.rada.gov.ua/Laws/show/v0064500-18#n16.

National Bank of Ukraine (2019). Regulations on the organization of internal control system in banks of Ukraine and banking groups. National Bank of Ukraine; Regulation dated 02.07.2019 № 88. Available from: https://zakon.rada.gov.ua/Laws/show/v0088500-19.

Oriekhova K. V. (2017). Financial security of the enterprise: theory, methodology, practice: monograph. Kyiv: DVNZ "University of Banking", 2017. 260 p.

Pavlyshyn I. O. (2016). Financial Risk Management of a Commercial Bank: Classification and Risk Assessment. Investments: practice and experience. 2016. No. 10. P. 39-42. Available from: http://nbuv.gov.ua/ujrn/ipd_2016_10_10.

Pavlyshyn I. O. (2016). Financial risk management of a commercial bank: classification and risk assessment. Financial services. 2016. No. 3-4. Available from: http://nbuv.gov.ua/ujrn/finu_2016_3-4_13.

Yatsenko R. M., Gontar D. D., Balikov O. G., Yatsenko R. M. (2017). The use of interactive means of training Moodle system in teaching discipline "Financial Management in the Bank". Development management. 2017. No. 1-2. P. 64-73. Available from: http://nbuv.gov.ua/ujrn/uproz_2017_1-2_11.

Abstract views: 102
PDF Downloads: 73
Published
2021-09-29
How to Cite
Babenko, M. (2021). Financial technologies for bank financial stability management in economical turbulence conditions. VUZF Review, 6(3), 90-99. https://doi.org/10.38188/2534-9228.21.3.10
Section
Articles