Combating crime in the banking sector as a method for ensuring its stability (evidence from Ukraine)
-
Author(s)Alyona KlochkoLink to ORCID Index: http://orcid.org/0000-0002-9596-6814
,
Oksana KvashaLink to ORCID Index: https://orcid.org/0000-0002-9832-6070
,
Zoia ZahyneiLink to ORCID Index: https://orcid.org/0000-0002-8679-124X
,
Mykola LogvinenkoLink to ORCID Index: http://orcid.org/0000-0002-5231-3610
,
Mykola KuryloLink to ORCID Index: https://orcid.org/0000-0003-1496-134X
-
DOIhttp://dx.doi.org/10.21511/bbs.15(1).2020.14
-
Article InfoVolume 15 2020, Issue #1, pp. 143-157
- Cited by
- 954 Views
-
204 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
An effective system for combating banking crimes can ensure the stability of the Ukrainian banking sector. Developing such a system requires an analysis of public policy institutional instruments to counter threats to the banking system stability. The article proposes the crime counteraction concept for the Ukrainian banking system based on the analysis of scientific articles dealing with the issue, relevant provisions of legal acts and on the study of functions of law enforcement agencies, individual executive bodies, central public authorities, state collegial bodies, territorial NBU departments, Ukrainian banks and their branches, the Deposit Guarantee Fund, international institutions, and bank clients.
It has been established that the stability of the Ukrainian banking system can be ensured by effective interaction of all actors in combating crime in the banking business. Overlapping of their functions and some conflict rules negatively affect ensuring the banking system stability by entities engaged in banking crime counteraction. Therefore, an algorithm of cooperation between relevant counteraction entities should be developed and reflected in the Banking and Financial Security Strategy on the legislative level. Optimization of statistical reporting on crime in the Ukrainian banking sector in a more informative format requires data on both individual types of banking crimes and on the persons who commit them. As part of the work of the National Bank of Ukraine’s Public Council, it is necessary to organize regional public councils and ensure cooperation between bank clients and local banking institutions. It is assumed that the development of effective mechanisms for protecting rights and legitimate interests of depositors and creditors, as well as combating criminalization in the banking sector will be the main functions of these regional public councils. The relevant innovations require amendments to the Regulation on the NBU Public Council.
Acknowledgment
The article was prepared as part of a project for young scientists of Ukraine in 2017 (state registration number – 0117 U 006531), Improving the Legislation of Ukraine Regarding the Protection of Banking Activities in the Context of European Integration: Economic and Legal Aspect, by Alyona M. Klochko, Ph.D. (Law), Sumy National Agrarian University, Head of the Chair of International Relations.
- Keywords
-
JEL Classification (Paper profile tab)K14, E58, E59
-
References28
-
Tables0
-
Figures2
-
- Figure 1. Banking crime statistics in Ukraine for the period of 2014–2018
- Figure 2. Entities of combating crime in banking in Ukraine
-
- European Commission. (2016). European Semester: Thematic factsheet – Banking sector and financial stability – 2017.
- FBI. (n.d.). Bank Crime Statistics (Bank Crime Statistics from Federally Insured Financial Institutions from 2003 to Present).
- Finaheiev, V. A. (2016). Vzaiemodiia operatyvnykh pidrozdiliv zi sluzhbamy bankivskoi bezpeky u protydii shakhraistvu v sferi kredytuvannia [Interaction of operating divisions and banking security services in counteracting lending fraud]. Yurydychnyi chasopys Natsionalnoi akademii vnutrishnikh sprav – Law Journal of the National Academy of Internal Affairs, 11(1), 252-262. (In Ukrainian).
- Goralko, O. V. (2011). Finansova bezpeka bankiv u systemi zabezpechennia finansovoi bezpeky derzhavy [Financial security of banks in the system of financial security of the state]. Naukovyi visnyk Lvivskoho derzhavnoho universytetu vnutrishnikh sprav – Bulletin of the Lviv State University of Internal Affairs, 2, 328-337. (In Ukrainian).
- Hartmann, P., Straetmans, S., & De Vries, C. G. (2005). Banking System Stability: A Cross-Atlantic Perspective (NBER Working Paper No. 11698).
- Herasymov, O. V. (2018). Banking Crime Counteraction (Ph.D. Thesis). Kharkiv: V. N. Karazin Kharkiv National University. (In Ukrainian).
- Hong Kong Monetary Authority (HKMA). (2003). Banking Supervision in Hong Kong.
- Kashpur, L. M. (2018). Counteraction of Incomes Legalization Which Are Illegally Received. Investytsii: Praktyka ta Dosvid – Investment: Practice and Experience, 3, 103-106. (In Ukrainian).
- Klochko A. N., Kurilo N. P., & Zapara S. I. (2017). K voprosu ugolovno-pravovoy okhrany sfery bankovskoy deyatelnosti Ukrainy [Criminal law protection of banking activities in Ukraine]. Vserossiyskiy kriminologicheskiy zhurnal – Russian Journal of Criminology, 11(4), 833-843. (In Russian).
- Klochko, A. M, & Myslyvyy, V. A. (2014). Rozbiini napady na bankivski ustanovy: kryminolohichna kharakterystyka ta zapobihannia [Bank robberies: criminological characteristics and prevention] (253 p.). Sumy: SSU. (In Ukrainian).
- Klochko, A. M, Kurilo, N. P., Kurilo, S., & Zapara, S. I. (2019). Criminal Legal Protection of Banking in Ukraine and at the International Level. Journal of Engineering and Applied Sciences, 14(1), 29-35.
- Kovalenko, A. V. (2016). Politsiia yak subiekt diialnosti shchodo zapobihannia zlochynnosti [Police as a crime prevention entity]. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu – Scientific Bulletin of the International Humanities University, 24, 110-113. (In Ukrainian).
- Kurylo, M., Klochko, A., Timchenko, G., & Gulyk, A. (2017). Banking in Ukraine as an object of criminal and legal protection. Banks and Bank Systems, 12(4), 114-120.
- Likhnovitsky, Ya. O. (2014). Prokuratura yak subiekt protydii zlochynnosti [The Prosecutor’s Office as a subject of combating crime]. Porivnialno-analitychne pravo – Comparative Analytical Law, 7, 182-185. (In Ukrainian).
- Liovochkin, S. V., Oparin, V. M., & Fedosov, V. M. (2011). Superechnosti finansovoi teorii i praktyky v konteksti ekonomichnoho rozvytku [Contradictions of financial theory and practice in the context of economic development]. Finansy Ukrainy – Finance of Ukraine, 6, 13. (In Ukrainian).
- Prosecutor’s Office of Volyn region. (2018). Volyn Prosecutor’s Office commenced criminal proceedings on the misappropriation of more than UAH 100 million by Zakhidincombank officials.
- Security Service of Ukraine. (2019). Official web-site.
- Skazko, Yu. A. (2014). Protydiia zlochynnosti u sferi napadiv na bankivski ustanovy ta inkasatoriv: zarubizhnyi dosvid ta implementatsiia yoho v Ukraini [Crime counteraction to attacks on banking institutions and collectors: foreign experience and its implementation in Ukraine]. Yurydychna nauka – Legal Science, 6, 67-75. (In Ukrainian).
- State Bureau of Investigations of Ukraine. (n.d.). Derzhavne biuro rozsliduvan. Official web-site. (In Ukrainian).
- State Financial Monitoring Service of Ukraine (SFMS) (2009). Typolohii lehalizatsii (vidmyvannia) dokhodiv, oderzhanykh zlochynnym shliakhom [Typologies of Legalization (laundering) of Proceeds from Crime].
- State Financial Monitoring Service of Ukraine (SFMS). (n.d.). Zapobihannia koruptsii [Prevention of corruption]. Official web-site. (In Ukrainian).
- Sudebno-yuridicheskaya gazeta. (2019, September 10). Zakonoproekt “Pro Biuro finansovykh rozsliduvan” proholosuiut u pershomu chytanni z nedolikamy [The bill on the Bureau of Financial Investigation is voted in the first reading with flaws].
- The National Bank of Ukraine (NBU). (2011). Postanova Pravlinnia NBU 20.06.2011 No. 197 “Pro zatverdzhennia polozhennia pro poriadok orhanizatsii ta provedennia perevirok z pytan zapobihannia ta protydii lehalizatsii (vidmyvanniu) dokhodiv, oderzhanykh zlochynnym shliakhom, finansuvanniu teroryzmu ta finansuvanniu rozpovsiudzhennia zbroi masovoho znyshchennia” [Resolution of the Board of the NBU 20.06.2011 No. 197 “On approval of the Regulations on the Procedure for Organizing and Conducting Checks on the Prevention and Counteraction of the Legalization (Laundering) of Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction”]. (In Ukrainian).
- The National Bank of Ukraine (NBU). (2019, January 31). Natsionalnyi bank u sichni zastosuvav do triokh bankiv zakhody vplyvu za porushennia zakonodavstva u sferi finmonitorynhu [In January, National Bank applied impact measures to three banks for violating legislation in financial monitoring].
- The National Bank of Ukraine (NBU). (n.d.). Rekomendatsii Derzhateliam Platizhnykh Kartok [Recommendations for payment card holders]. (In Ukrainian).
- Verkhovna Rada of Ukraine. (2001). Kryminalnyi kodeks Ukrainy [The Criminal Code of Ukraine]. Vidomosti Verkhovnoi Rady Ukrainy, 25-26.
- Verkhovna Rada of Ukraine. (2014). Zakon Ukrainy “Pro zapobihannia koruptsii” [Law of Ukraine On the Prevention of Corruption]. Vidomosti Verkhovnoi Rady, 49, st. 2056.
- Verkhovna Rada of Ukraine. (2015). Zakon Ukrainy “Pro prokuraturu” [Law of Ukraine On Prosecution].
-
Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 3006 Downloads: 1022 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
-
Evaluating the nationalization & privatization effect: a case of Indian banking industry
Manju Rajan Babu ,
Ashok Kumar M.
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.02
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 11-21 Views: 2869 Downloads: 403 TO CITE АНОТАЦІЯThe facilitation of economic transactions and friendly investor environment is undertaken through effective performance of financial systems. Mobilization of savings and funding the profitable business opportunities are essential in improving the efficiency of intermediation. The study aims to evaluate the effects of nationalization and privatization on Indian banks. Various factors have been considered to examine the effects of privatization and nationalization, including sources of public sector inefficiency, measures of firm performance, econometric issues, and the mode of privatization. The data was collected for the period of 1998 to 2016 from Indian banks. Data Envelopment Analysis (DEA) was used to evaluate the financial reports of the banks selected to evaluate the efficiency of input and output variables. Positive results were observed, concerning the efficiency and profitability of banking industry after banks’ privatization. Performance of private banks has been observed effective and efficient as compared to the public sector banks. Privatization of banks must be increased and maintained to sustain the efficiency of the banks and implement strategies to maintain the assets. Future studies may recruit more appropriate sample size to evaluate the privatization and nationalization effects of Indian banking industry. Greater number of banks will provide more precise results, using data envelopment analysis.
-
ERP implementation in banks: success factors & impact on financial performance
Banks and Bank Systems Volume 12, 2017 Issue #4 pp. 17-30 Views: 2716 Downloads: 1146 TO CITE АНОТАЦІЯThe study aims to measure the extent of implementing ERP systems in the banking sector in Jordan, and identify the main factors that influence the implementation decision, in addition to measure the impact of the post-implementation of the ERP system on the financial performance. The study utilized a content analysis as a research instrument. The study of population consisted of all the banks in Jordan, where the study applied ‘Purposive Sample’ type. Therefore, the study included 11 banks from 2011 to 2016.
The study indicated that the implementation year of the ERP system started in most of the Jordanian banks in 2013, and the rates vary from bank to bank according to their importance and the level of awareness. Training courses are considered the main variable that these banks face in the process of implementation. In addition, awareness of the advantages, the cost, and supporting the infrastructure are the core factors needed to influence the implementation decision.
There is no impact when implementing an ERP system on the financial performance of the Jordanian banks in regard to the ROI and the DPS; on the other hand, there is an impact of the ERP system on the overall performance of the banks.
The study recommends to disseminate knowledge on the advantages of implementing of ERP system in Jordanian banks and to develop the IT department efficiency. Moreover, it will be worthwhile to examine the effect of ERP systems by utilizing financial and non-financial measurements.
