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COMPARATIVISM OF DEFINITIONS "SYSTEMICALLY IMPORTANT" AND "SYSTEMATIC FINANCIAL INSTITUTIONS"

N. Prykaziuk
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N. Prykaziuk: PhD in Economics, Associate Professor Taras Shevchenko National University of Kyiv

Вестник Киевского национального университета имени Тараса Шевченко. Экономика., 2017, vol. 5(194), issue 194, 22-29

Abstract: A comparative analysis of the definitions of "systemically important", "systemically significant", "systematic financial institutions" was conducted, and the correlation between definitions was established in the article. It was discovered that the definition "systemically important financial institution" is the broadest among those which were investigated, since it was substantiated that not only institutions that are considered large according to their size or volume of transactions, but also those institutions which are of an average or even small size but which are characterized by the presence of a large number of similar financial institutions can be related to the financial institutions that meet the main features of the systemically important institutions. It was determined that the ability to influence the financial system, and the entire economy through financial system is the main feature which determines an institution as a "systemically important financial institution". Systemically important financial institutions can be allocated both at the national and global levels. At the same time, the latter can carry systemic risks and affect not only the national but also the global financial system, the difficulties of their activities can be reflected in the situation of the economy of some countries as well as the aggregate of countries; It was investigated that systemically important financial institutions are those institutions that can potentially carry systemic risks and negatively affect the financial system that in its turn affects the economy as a whole, and that have at least one additional feature related to their large size (capital / assets / the market share / volumes and the complexity of the operations they carry out / the presence of an extensive system of branches and subsidiaries), systematic, the presence of a large number of similar financial institutions or the difficulty (complexity) of their substitution; It was substantiated that systematic financial institutions are those financial institutions, which according to the parameters of the size, the structure and the volume of transactions carried out by them act as an important part of the financial system and taking into account the scale of their activity, can potentially influence it.

Keywords: financial system; systemically important financial institutions; systemically significant financial institutions; system-building financial institutions; systemic risk (search for similar items in EconPapers)
Date: 2017
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