Diagnostics and Systemization of Basic Signs of Banking Crisis

Oleksiy Lysenok () and Lada Shirinyan ()
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Oleksiy Lysenok: National University of Food Technologies, Kyiv, Ukraine
Lada Shirinyan: National University of Food Technologies, Kyiv, Ukraine

Oblik i finansi, 2018, issue 4, 94-101

Abstract: In the conditions of aggravation of the crisis in the economic and banking system of Ukraine, the activities of banks are accompanied by an increased level of risk and significant threats to the deterioration of their financial position. Such situation is due to the accelerated outflow of customer deposits, deterioration in the quality of assets, including loan portfolios, and the devaluation of the national currency. The purpose of the article is to reveal the nature and types of financial and economic crises, the prerequisites for their occurrence, as well as the systematization of the main ways of overcoming the crisis in world and domestic banking practice. It was revealed that the banking crisis goes through four stages. To overcome the banking crisis, the anticrisis management should be carried out, that includes management measures and solutions for diagnosing, neutralizing and overcoming crises and their causes at all levels of the financial and economic management of banks. The classification of banking crises was described. It was proved that almost all banking crises have the same prerequisites and are essentially destabilizing the financial and economic activities of banking institutions. The factors of banking crises were systematized. The three main stages of state anticrisis management during the onset of a systemic banking crisis were analyzed. It was determined that anticrisis management of the banking system should include: 1) the development of a set of measures to counteract the negative impact of potential threats on the process of ensuring financial stability and stable management of the financial and economic activities of each bank, 2) preventing the occurrence of crisis situations, 3) implementation of continuous assessment and control for the financial and economic activities of banks in order to increase their financial stability and reduce the likelihood of bankruptcy.

Keywords: banking institutions; crisis of the banking system; anticrisis management; state anticrisis measures (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2018
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