Banking security monitoring: development of a methodical support to valuation

Abstract

Topicality of research into banking security is justified by growing importance of the banking sector in financing the development of countries and vulnerability to cyclical crises. The purpose of the article is to develop a methodology for assessing the security of the banking sector in a crisis. Security is relevant for the banking sector as entrepreneurship. The scientific work proposes a methodical support. The sequential stages of evaluation are identified, such as the formation of a set of indices; determination of characteristic values of indices; normalization of indices; determination of weighting coefficients; calculation of the complex indicator. The set of banking security indices has been expanded to include indices that are important from the point of view of lending to the development of the economy and the economic security of the banking sector. The characteristic values of the proposed indices have been determined. The weighting coefficients of indices are set by an expert method. Methodical support for monitoring is based on the calculation of a complex banking security indicator and determination of its level according to the established gradations. The results indicate the expediency of monitoring and using effective tools to influence the state of banking security to improve its level.