Approaches and threats to the formation of financial and economic security of banking institutions

Main Article Content

D.V. Shcherbatyh
B.V. Shpilevoy

Abstract

Introduction. Before the banking system now is the goal to achieve financial stability of individual banks and to guarantee financial security of the system as a whole. The impact of factors of the global financial crisis and of the threats of internal nature determine urgency of solving the problem of providing financial and economic security of banks that will allow to make preventive actions and to minimize the negative effects of the crisis in the banking system of Ukraine.


Purpose. The purpose of the article is to identify the main threats and approaches to the formation of financial and economic security of banking institutions.


Methods. Method of theoretical generalization, formal-logical, monographic and comparative methods; expert and analytical methods.


Results. The article investigates the modern approaches of forming financial and economic security of banking institutions. The main internal and external threats of the banking financial and economic security are emphasized.


Originality. The key characteristics of the financial safety of banks are shown. It was established that the financial security depends on bank's stability and the stability of financial condition, the degree of efficiency of financial and economic activities, the level of control over external and internal risks, the level of capital adequacy; level of protection of interests of shareholders. The basic strategic measures to limit the negative impact of threats on the state of the banking institutions are offered.


Conclusion. An indication of preserving financial and economic security of the bank is to control and balancing income and expenditure of the economic system, resulting in the maintenance of constant financial equilibrium between revenues and expenditures of the bank, in other words, maintaining liquidity. On the preservation of financial and economic security of the bank exert considerable influence such factors as: qualifications of an economic, financial and personnel qualifications and skills of senior management; legal support and reviewing contracts and contact the bank; effectiveness of internal controls; cash, tax and payment discipline; sales and marketing strategy of the bank.

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References

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