Comparativism of Definitions "Systemically Important" and "Systematic Financial Institutions"
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2017, Vol 5, Issue 194
Abstract
A comparative analysis of the definitions of "systemically important", "systemically significant", "systematic financial institutions" was conducted, and the correlation between definitions was established in the article. It was discovered that the definition "systemically important financial institution" is the broadest among those which were investigated, since it was substantiated that not only institutions that are considered large according to their size or volume of transactions, but also those institutions which are of an average or even small size but which are characterized by the presence of a large number of similar financial institutions can be related to the financial institutions that meet the main features of the systemically important institutions. It was determined that the ability to influence the financial system, and the entire economy through financial system is the main feature which determines an institution as a "systemically important financial nstitution". Systemically important financial institutions can be allocated both at the national and global levels. At the same time, the latter can carry systemic risks and affect not only the national but also the global financial system, the difficulties of their activities can be reflected in the situation of the economy of some countries as well as the aggregate of countries; It was investigated that systemically important financial institutions are those institutions that can potentially carry systemic risks and negatively affect the financial system that in its turn affects the economy as a whole, and that have at least one additional feature related to their large size (capital / assets / the market share / volumes and the complexity of the operations they carry out / the presence of an extensive system of branches and subsidiaries), systematic, the presence of a large number of similar financial institutions or the difficulty (complexity) of their substitution; It was substantiated that systematic financial institutions are those financial institutions, which according to the parameters of the size, the structure and the volume of transactions carried out by them act as an important part of the financial system and taking into account the scale of their activity, can potentially influence it.
Authors and Affiliations
Nataliia Prykaziuk
Keywords
Related Articles
- EP ID EP240116
- DOI 10.17721/1728-2667.2017/194-5/3
- Views 86
- Downloads 0
Organizational and Economic Assumptions of Improvement Innovative Mechanism of Ukrainian Agricultural Sector
The article analyzes the structure of the potential of innovative development of the of ukrainian agroindustrial sector. There was studied scientific potential and agribusiness production capacity in order to identify si...
PARTICULAR QUALITIES OF INTEGRATIONAL INTERACTION DEVELOPMENT OF THE FOOD INDUSTRY IN UKRAINE
Integrated structures forming and their development is an effective area of improving the efficiency of agricultural enterprises in general and the food industry in particular. Specific features of this sector determine...
SURVEY OF DEMAND AND SUPPLY BALANCE IN LOAN MARKETS: CENTRAL BANK'S EXPERIENCE
This article examines the existing Bank Lending Survey (BLS) approaches to the assessment of the non-price lending conditions' impact on the credit market balance. BLS responses provided domestic central banks an early a...
THE LIFE QUALITY EVALUATION: INTERNATIONAL EXPERIENCE AND UKRAINE'S PRACTICE
Analysis of the informational content of the life quality indicators in the dynamics has showed that methodic based on OECD concept is one of two methodics, that are the most suitable for the life quality evaluation in U...
PROBLEMS OF UKRAINIAN ENERGY AND THEIR SOLUTIONS
The paper studies current situation at the Ukrainian electric power industry. The problems which prevent development of the industry under current conditions are analyzed. The problems of the cross-subsidization are expo...