Modeling of the financial system?s stability on the example of Ukraine

Shkolnyk, Inna; Kozmenko, Serhiy; Kozmenko, Olga; Orlov, Volodymyr; Shukairi, Fathi

doi:10.24136/eq.2021.014

Cited by 18 publications

(10 citation statements)

References 31 publications

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“…The issue of digital literacy has intensified significantly over the last twenty or thirty years, along with the digitalization of most business activities of economic entities, while growing its role in the financial services market (in particular, the sphere of financial technologies [10][11][12][13], and in the banking business [14][15][16][17][18], and financial behavior of households in particular [19][20][21][22][23][24][25][26]. Peculiarities of changes in the financial behavior of households in the regional aspect have been studied in the scientific works of such scientists as [27][28][29][30][31][32][33], the study of which made it possible to form a holistic view of the financial behavior of households, both at the macroeconomic level (market of financial services), and in the regional aspect in the conditions of the national innovative economy development.…”

Section: Literature Reviewmentioning

confidence: 99%

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

Zhavoronok¹,

Popelo²,

Shchur³

et al. 2022

ISI

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Households play one of the key roles in the development of the financial system of any country and the national economy in general. It is the understanding of the behavior of these economic entities in the market of financial services that makes it possible to predict the development of such a market, to understand the mechanisms of the emergence of dissipative processes in the interaction of households and financial institutions, which can form crisis phenomena in the development of such a system and restrain the innovative development of the national economy. This determines the importance and relevance of further research in this direction. Within the article, the impact of modern digital technologies on the development of financial services, in particular financial behavior of households, in the conditions of the formation and active development of the innovative economy is considered. Significant attention is paid to the specification of the methodology for determining the impact of the digitization index and the index of the model transformation of financial behavior of households. It is established that the outlined models are specific and different between various regions in any country. That is why the above method of calculation was used on the example of Ukraine. As a result, information was obtained on the digitalization index, and the transformation index of the financial behavior model of households in twenty-four regions of Ukraine. Based on the use of econometric analysis, algebraic equations of the dependence of the transformation index of the model of financial behavior of households on the digital technologies development in each of the outlined regions were determined.

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Section: Literature Reviewmentioning

confidence: 99%

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

Zhavoronok¹,

Popelo²,

Shchur³

et al. 2022

ISI

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“…This situation is largely due to the lack of international standards for diagnosing and regulating the stability of financial development. International financial institutions, including the International Monetary Fund, only identify certain areas of analysis and propose an indicative list of indicators that should be taken into account when introducing regulatory measures [ 31 ]. Because of that, central banks are forced to develop independent indicators and criteria for diagnosing and regulating the stability of financial development.…”

Section: Introductionmentioning

confidence: 99%

Stability of financial development: Problems of measurement, assessment and regulation

Господарчук

Zeleneva

2022

PLoS ONE

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Adequate measurement, assessment, and regulation of financial development stability are key components, the formation of effective macroprudential policies, and the coordination of these policies among countries. However, an analysis materials on the subject shows that work in this area is fragmented,. In this regard, the purpose of this study is to develop a methodology for diagnosing and regulating the stability of financial development based on a systematic approach. The study used systematic, comparative, and GEO analysis, econometric methods. As a result, new indicators have been developed to diagnose the financial development of countries. The authors also propose criteria, which could be used to signal the need for countercyclical regulation tools. The novelty of the study lies in a systematic approach to the diagnosis and regulation of the stability of financial development. The systemic nature of the study is ensured by the application of the statistical framework of the System of National Accounts. Testing of the developed indicators and criteria was carried out in relation to the OECD+ (Organisation for Economic Co-operation and Development) countries for the period 2007–2020. As a result of the testing, a rating of countries was built according to the level of stability of financial development. This rating highlighted leading countries as well as countries generating systemic risks. The study also assessed the legal grounds behind the introduction of a countercyclical markup by a number of countries. The new diagnostic and regulatory system has a number of advantage—it is highly representative and objective by nature, and has a wide range of applications. The use of this system will improve the complexity and quality of diagnosing and regulating the stability of financial development at the national and global levels, as well as increase the effectiveness of public decision-making.

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“…The scientific works also note that there are no uniform worldwide standards, methods, or indicators for assessing financial sustainability ( Babar et al ., 2019 ; Nasreen and Anwar, 2019 ; Jadoon et al, 2021 ; Shkolnyk et al, 2021 ). A broad scope is employed in order to evaluate and test system sustainability based on different indicators and standards.…”

Section: Introductionmentioning

confidence: 99%

“…The results obtained in the scientific works are diverse and interesting in terms of data coverage and other assessment methods. So, for example, in the study by Ukrainian scientists ( Shkolnyk et al, 2021 ) on big data related to the structure of the financial system of Ukraine, a matrix of the financial system sustainability characteristics was developed, according to the 4x2 principle proposed by experts of the International Monetary Fund ( Schinasi, 2004 ). The list of indicators for calculating the integral indicator characterizing the stability of the financial system of Ukraine covers the period from 2007 to 2019.…”

Section: Introductionmentioning

confidence: 99%

Sustainability of the regional financial system: a case study of the Northwestern Federal District

et al. 2022

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Background: This article provides an assessment of the sustainability of Russian regions’ financial systems. The study is based on the methods of generalization and synthesis, correlation-regression analysis, and multivariate classification. Since the structure of the regional financial system is complex, several works are devoted to studying its sustainability issues. The relevance of the study topic is confirmed by the lack of a systematic approach to assessing the integral index of sustainability and the possibility of using various tools in determining the complex indicator. Methods: This methodology with application of mathematical statistics methods makes it possible to assess the financial system sustainability in four sectors, to include the leading indicators in the assessment, and to identify regions with extreme values of debt burden indicators. The method was tested for the regions of the Northwestern Federal District (NWFD) for the period 2010 - 2019 to classify the regions according to three levels of debt sustainability. Data collection from the 1st January to 30th April 2022 included statistical data from government open internet sources, sectors studied relate to government, and municipal budgets in the NWFD. Authors analyzed regional debt sustainability indicators and identified themes in the field of sustainability studies for the NWFD. Results: An increased level of financial system sustainability was observed among the NWFD regions in the corporative and personal finance sectors, indicating a significant contribution of businesses and households to maintaining the balance and sustainability of the financial system in Russia as a whole. The results of the study also identified that the NWFD regions belong to three clusters: cluster 1 - high debt sustainability; cluster 2 - medium debt sustainability; and cluster 3 - low debt sustainability. Conclusions: The study results allowed the identification of regions with a constantly high level of debt, financial, and corporative sustainability.

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Modeling of the financial system?s stability on the example of Ukraine

Cited by 18 publications

References 31 publications

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

The Role of Digital Technologies in the Transformation of Regional Models of Households’ Financial Behavior in the Conditions of the National Innovative Economy Development

Stability of financial development: Problems of measurement, assessment and regulation

Sustainability of the regional financial system: a case study of the Northwestern Federal District

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