The Role of the Credit Services Market in Ensuring Stability of the Banking System

Abstract

In the article, the role of the credit services market in ensuring stability of the banking system is examined. The study was carried out on the basis of a detailed comparative analysis of the development of the banking system and the credit services market of Ukraine. This approach made it possible to identify the main prerequisites for the development of such a market, and possible options for the formation of crisis phenomena in its functioning. Within the article, it is also described in detail how the credit services market can have a destructive effect on stability of the country's banking system and its financial system. For this, considerable attention is paid to the description of the economic and political environment in which commercial banks have operated in Ukraine during the last twenty years. This made it possible to specify the causes of crisis situations in the country's banking system, justify the actions of state authorities in countering the consequences of such crises. The analysis of the financial stress index as an indicator of stability of the financial system functioning made it possible to establish the cyclic nature of its changes, which proved permanent emergence of crisis situations in the development of both the credit services market and the banking system of Ukraine.

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“…Esta clasificación proporciona un marco legal claro para el sector empresarial, facilitando la regulación y el apoyo adecuado a las pymes. Zhavoronok et al (2022) investigan el marco regulatorio del sector bancario en Ecuador y su impacto en el financiamiento a las pymes. Proporcionan insights profundos sobre los factores que contribuyen a los préstamos no rendidos y sientan bases teóricas valiosas.…”

“…En el ámbito regulatorio, Zhavoronok et al (2022) y Páez et al (2021 analizan el marco regulatorio del sector bancario ecuatoriano y sus efectos en el financiamiento a pymes. Resaltan la importancia de considerar aspectos micro y macroeconómicos, así como la necesidad de adoptar enfoques alternativos en la regulación financiera.…”

Theoretical and Methodological Approaches to the Formation of a Model for Increasing the Efficiency of the System for Ensuring the Economic Security of a Banking Institution

“…As noted in the scientific and practical literature [6][7], socio-economic transformations in the economy of Ukraine are characterized by a number of factors that significantly affect the formation of risks and threats, including in banking. Among the latter, one can mention the instability of the political and socio-economic situation in the country, the imperfection of legislation that does not contribute to the protection of the interests of banks in the course of their activities, the insignificant internal possibilities for the formation of financial resources of banks, the low level of public confidence in them, quite significant indicators of crime in society, in including in banking, dishonest behaviour and unprofessional activities of bank employees At the same time, the current threats in banking are characterized primarily by their diversity and are complex in nature and manifest themselves in banks in their entirety.…”