The role of the banking system in supporting the financial equilibrium of the enterprises: the case of Ukraine
-
Author(s)Svitlana YehorychevaLink to ORCID Index: http://orcid.org/0000-0002-7829-7073
,
Tetiana GudzLink to ORCID Index: http://orcid.org/0000-0002-2310-5425
,
Mykhailo KrupkaLink to ORCID Index: http://orcid.org/0000-0002-8775-1397
,
Oleh KolodizievLink to ORCID Index: http://orcid.org/0000-0002-6715-2901
,
Nataliіa TarasevychLink to ORCID Index: http://orcid.org/0000-0002-2110-7320
-
DOIhttp://dx.doi.org/10.21511/bbs.14(2).2019.17
-
Article InfoVolume 14 2019, Issue #2, pp. 190-202
- Cited by
- 1094 Views
-
248 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The financial equilibrium (“financial health”) of the enterprises is a prerequisite for their sustainable development, which ensures macroeconomic stability of the economy and the welfare of the state. It should be supported by the banking system, which performs the function of the effective reallocation of capital. Recently, the Ukrainian banking system itself is in a challenging situation and is undergoing a period of transformation. The purpose of the study is to assess how sufficiently the banking system of Ukraine supports the financial equilibrium of enterprises and to find the possibilities to strengthen its role in the progress of the real sector of economy. The authors single out three stages of financial equilibrium growth; each of them can be supported by the relevant banking services. The empirical analysis proves that the Ukrainian banks successfully ensure only the first stage, namely, liquidity balancing. To quantitatively assess the role of the banking system in supporting the enterprises’ financial equilibrium, a multivariate regression applying mathematical gnostic analysis in the program shell R Console is used. The research makes it possible to find out that only the economy monetization, the share of time deposits of economic entities and growth rate of mortgage loans have a positive effect. The authors conclude that the problems of both enterprises and the banking system are in the sphere of development and implementation of government economic policy and are aggravated by the restrictive monetary policy.
-
JEL Classification (Paper profile tab)Е52, G21, G30
-
References26
-
Tables3
-
Figures5
-
- Figure 1. The stages of financial equilibrium growth and appropriate banking services
- Figure 2. Some indicators on the base of lending activity of the Ukrainian banks in 2008–2017
- Figure 3. Role of bank performance indicators in the forecasting the index of financial equilibrium of enterprises in Ukraine in the medium term
- Figure 4. Priority ranking of bank performance indicators influence on the forecast index of financial equilibrium of enterprises in Ukraine in the short term
- Figure 5. Forecast of the index of Ukrainian enterprises’ financial equilibrium for 2019–2020
-
- Table 1. Database for analyzing the impact of the banking system on the financial equilibrium of enterprises in Ukraine in 2008–2017
- Table 2. Correlation between the banks’ capitalization and the monetary indicators in Ukraine in 2008–2017
- Table A1. Statistical characteristic of the model forecasting the financial equilibrium index of Ukrainian enterprises influenced by the banking system
-
- Altman, I. E., & La Fleur, K. J. (1981). Managing a return to financial health. The Journal of Business Strategy, 2(1), 31-38.
- Belolipetskiy, V. G. (2000). Финансовое равновесие в национальном хозяйстве [Finansovoye ravnovesiye v natsionalnom khoziaystve]. Moscow: TEIS.
- Bernanke, B., & Gertler, M. (1985). Banking in general equilibrium (NBER Working Paper No. 1647).
- Besanko, D., & Thakor, A. V. (1993). Relationship Banking, Deposit Insurance, and Bank Portfolio Choice. In C. Mayer & X. Vives (Eds.), Capital Markets and Financial Intermediation (292-319). Cambridge: Cambridge University Press.
- Bilenko, Yu. I. (2015). Роль розвитку банківських систем у фінансуванні основного капіталу підприємств у країнах Центральної та Східної Європи [Rol rozvytku bankivskykh system u finansuvanni osnovnoho kapitalu pidpryiemstv u krainakh Tsentralnoi ta Skhidnoi Yevropy]. Visnyk Odeskoho natsionalnoho universytetu imeni I. I. Mechnikova, 20(4), 22-26.
- Bolton, P., & Freixas, X. (2006). Corporate finance and the monetary transmission mechanism. The Review of Financial Studies, 19(3), 829-870.
- Boot, A. W. A. (2000). Relationship banking: what do we know? Journal of Financial Intermediation, 9(1), 7-25.
- Davis, E. P. (1994). Banking, corporate finance, and monetary policy: an empirical perspective. Oxford Review of Economic Policy, 10(4), 49-67.
- Dhaliwala, D. S., Li, O. Z., & Xie, H. (2010). Institutional investors, financial health, and equity valuation. Asia-Pacific Journal of Accounting & Economics, 17(2), 151-173.
- Gudz, T. P. (2018). Теорія і методологія формування фінансової рівноваги підприємства [Teoriia i metodolohiia formuvannia finansovoi rivnovahy pidpryiemstva]. Poltava: PUET.
- Kostyrko, L. A. (2008). Діагностика потенціалу фінансово-економічної стійкості підприємства [Diahnostyka potentsialu finansovo-ekonomichnoi stiikosti pidpryiemstva]. Kharkiv: Factor.
- Kovalenko, V. V. (2013). Фінансово-кредитна взаємодія банків і підприємств [Finansovo-kredytna vzaiemodiia bankiv i pidpryiemstv]. Efektyvna ekonomika, 4.
- Law, J. (2018). A Dictionary of Finance and Banking. Oxford: Oxford University Press.
- Lvova, N. (2019). Corporate financial health assessment: methods and tools for emerging markets. Ekonomika i banki, 1, 23-29.
- Malyarets, L., Dorokhov, O., Koybichuk, V., & Dorokhova L. (2019). Obtaining a Generalized Index of Bank Competitiveness Using a Fuzzy Approach. Journal of Central Banking Theory and Practice, 8(1), 163-182.
- National Bank of Ukraine. (2019a). Аналіз діяльності СЕП [Analiz diialnosti SEP].
- National bank of Ukraine (2019b). Грошово-кредитна та фінансова статистика [Groshovo-credytna ta finansova statystyka].
- National Bank of Ukraine. (2019с). Показники банківської системи [Pokaznyky bankivskoi systemy].
- Niezviestnaia, О. V. (2016). Дослідження сучасного стану та інструментів фінансової підтримки підприємств з боку банківського сектору [Doslidzhennia suchasnoho stanu ta insrumentiv finansovoi pidtrymky pidpryiemstv z boku bankivskoho sektoru]. Tekhnologicheskiy audit i reservy proizvodstva, 4/5, 32-36.
- Savchenko, T. H. (2011). Структура механізму впливу банківської системи на рівноважні стани у економіці [Struktura mekhanizmu vplyvu bankivskoi systemy na rivnovazhni stany u ekonomitsi]. Ekonomika i rehion, 4, 53-58.
- Schnitzer, M. (1999). On the role of bank competition for corporate finance and corporate control in transition economies. Journal of Institutional and Theoretical Economics, 155(1), 22-46.
- State Statistics Service of Ukraine. (2019). Економічна статистика. Економічна діяльність. Діяльність підприємств [Economichna statystyka. Ekonomichna diialnist. Diialnist pidpryiemstv].
- Sufi, A. (2005). The role of banks in corporate finance. Massachusetts Institute of Technology Digital Dissertations.
- The World Bank. Data. (2015). Broad money (% of GDP).
- Yehorycheva, S. B. (2012). Стратегії інноваційної діяльності комерційних банків [Stratehii innovatsiinoi diialnosti komertsiinyh bankiv]. Electronic archive of Poltava University of Economics and Trade.
- Yehorycheva, S., Kolodiziev, O., & Prasolova, S. (2017). Actual Problems of the Ukraine’s Banking System Capital Stability Management. Banks and Bank Systems, 12(2), 60-67.
