QUALITATIVE INDICATORS OF BANK PERFORMANCE ASSESSMENT FOR THE PURPOSES OF PARTICIPATION IN THE DEPOSIT GUARANTEE SYSTEM IN UKRAINE
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
One of the directions of reforming the system of deposit insurance in the world is risk-oriented approach, which means that the degree of involvement in the system is determined by the degree of exposure of the participant’s operations to risk. Correct estimation of the degree of risk of banking operations requires a well-grounded approach to the study of indicators-criteria that should be clear, understandable, and objective. The subject of research is the performance of the deposit guarantee system in Ukraine. Therefore, the present research aims to solve applied problems of establishing the content of qualitative indicators of banking operations that arise in their application for the sake of determining the degree of risk in the operations of the participant of the Deposit Guarantee Fund in the estimation of the amount of recurring charges. Methodology. Systemic method was applied to establish the content and assign qualitative indicators of bank performance for establishing their actual content in accordance with the regulation. On this basis, using a formal logical method, definitions of legal notions were formulated with due account of the financial and economic meaning as well as the established goal of legal regulation. Formal dogmatic approach allowed to make an analysis of the regulatory and legal framework of the state, to identify functional capacity of the system of protection of the rights and interests of bank depositors, their technical and legal excellence. Also, a number of other general scientific methods of research were applied, in particular: analysis (to study systemic application of the notions), historical legal (to study the establishment, change and development of the deposit guarantee system), comparative legal (to study the legislation determining specific principles of the functioning of the deposit guarantee system of natural persons in foreign states) etc. As the result, there has been established the essence of the current qualitative indicators used in the determination of the degree of risk of banking operations in Ukraine as far as application of the means of influence for violation of banking legislation by the National Bank of Ukraine to participating banks over the reporting period, as well as administrative and economic sanctions applied for violation of legislative requirements related to the deposit guarantee system of natural persons are concerned. Also, proposals have been developed concerning the procedure of their application for the sake of increasing the opportunities for ensuring risk-oriented approach.
How to Cite
##plugins.themes.bootstrap3.article.details##
risk-oriented approach, written warning, fine, administrative and economic sanctions, recurring charge
Buchko, I. (2016). Osnovni zasady funktsionuvannia Fondu harantuvannia vkladiv fizychnykh osib u sysytemi bankivskoi bezpeky [Basic principles of functioning of the Deposit Guarantee Fund in the banking security system]. Еkonomika ta suspilstvo [Economy and society], vol. 5, рр. 325–329. (in Ukrainian)
Garantii zashchity prav potrebitelei bankovskikh uslug v stranakh Evrosoiuza [Guarantees of protection of the rights of consumers of banking services in the countries of the European Union]. Available at: http://law-clinic.net/article/200/2083 (in Russian)
Kurylo, M., Klochko, A., Timchenko, G., & Gulyk, A. (2017). Banking in Ukraine as an object of criminal and legal protection. Banks and Bank Systems, vol. 12 (4), pp. 114–120. doi: https://doi.org/10.21511/bbs.12(4).2017.11
Skarka, A., & Adamyk, B. (2017). Problematyka finansovoi diialnosti Fondu harantuvannia vkladiv fizychnykh osib [Problems of financial activity of the Deposit Guarantee Fund]. Hlobalni ta natsionalni problemy ekonomiky [Global and national economic problems], vol. 19, pp. 462–468. (in Ukrainian)
Skarka, A., & Adamyk, B. (2016). Dzherela formuvannia koshtiv Fondu harantuvannia vkladiv fizychnykh osib ta analiz yih vykorystannia [Sources of formation of funds of the Deposit Guarantee Fund and analysis of their use]. Ukrainian Journal of Applied Economics, Т. 1, 3, pp. 5–20. (in Ukrainian)
Andrievskaia, I. (2014). Prozrachnost bankovskoi sistemy i konkurentciia: mezhstranovoi analiz [Transparency of the banking system and competition: cross-country analysis]. Voprosy ekonomiki [Economic issues], vol. 9, pp. 96–112. (in Russian)
Fond harantuvannia vkladiv fizychnykh osib. Richnyi zvit za 2019 rik. [Deposit Guarantee Fund. Annual report for 2019] (2019) Available at: https://www.fg.gov.ua/storage/editor/files/richniy-zvit-fondu-2019.pdf (in Ukrainian)
Law of Ukraine On Banks and Banking No. 2121-ІІІ dated December 07, 2000. Available at: http://zakon2.rada.gov.ua/laws/show/2121-14 (in Ukrainian)
Law of Ukraine On the Deposit Guarantee System No. 4452-VI dated February 23, 2012. Available at: http://zakon2.rada.gov.ua/laws/show/4452-6 (in Ukrainian)
Danylenko, A. (2017). Evolving Ukraine’s Deposit Guarantee System Towards Global Standards: A Macroprudential Perspective. Visnyk of the National Bank of Ukraine, vol. 242, pp. 14–27. doi: https://doi.org/10.26531/vnbu2017.242.030
Demirgüç-Kunt, A., Kane, E., Laeven, L. (2007). Determinants of deposit-insurance adoption and design. Working Paper, 12862, NBER. doi: https://doi.org/10.3386/w12862
Folkerts-Landau D., Lindgren C.-J. (1998). Toward a Framework for Financial Stability. World Economic and Financial Surveys. International Monetary Fund. doi: https://doi.org/10.5089/9781557757067.083
Kane, E. J. (2016). Financial safety nets: the good, the bad and the ugly. Boston College. Available at: https://www2.bc.edu/edward-kane/Financial%20Safety%20Nets%20GoodBadUgly.pdf
Dovnar, Iu. (2008). Problema zashchitі vkladov v prave Evropeiskogo Soiuza [The problem of protection of bank deposits in the law of the European Union]. Pravo i demokratiia [Law and Democracy], vol. 19, p. 189. (in Russian)
Amending Directive 94/19/EC on deposit guarantee schemes as regards the coverage level and the payout delay: Directive 2009/14/EC of the European Parliament and of the Council of 11.03.2009. Official journal of European Union, 2009. L 68, 13.3.2009. P. 0003–0007.
On deposit guarantee schemes: Directive 2014/49/EU of the European Parliament and of the Council of 16.04.2014. Official journal of European Union, 2014. L 173, 12.6.2014. P. 0149–0178.
Hodak, Ye. (2017). Administrative and legal status of the Deposit guarantee fund. Ternopil.
Regulation on the Procedure of Estimation, Accounting and Payment of Charges to the Deposit Guarantee Fund, approved by Decision of the Executive Directorate of the Deposit Guarantee Fund No. 1 dated July 02, 2012 (registered with the Ministry of Justice of Ukraine on February 27, 2012 under No. 1273/21585) Available at: https://zakon.rada.gov.ua/laws/show/z1273-12#Text (in Ukrainian)
Regulation on the Application of Means of Influence by the National Bank of Ukraine, approved by Resolution of the Management Board of the National Bank of Ukraine No. 346 dated August 17, 2012 (registered with the Ministry of Justice of Ukraine on September 17, 2012 under No. 1590/21902). Available at: https://zakon.rada.gov.ua/laws/show/z1590-12#Text (in Ukrainian)
Case of Rysovskyi v. Ukraine (Application no. 29979/04) 20/10/2011. European Court of Human Rights. Available at: http://hudoc.echr.coe.int/fre?i=001-107088
Kovalenko, A. (2016). Public and legal regulation of banking activity in Ukraine in terms of European integration. Kyiv.