United States banking stability: An explanation through machine learning

In the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.

This study came to inspect a new approach to the government debt security assessment based on the systematization of indicators in terms of four directions: solvency, liquidity, domestic indebtedness, and external indebtedness. The proposed methodology considers the weaknesses, which negatively affect the level of government debt security.
It was established that in 2014−2016 the level of security at emerging markets was the worst. The main reason was insufficient solvency. Also, the obtained results showed that the general assessment of domestic indebtedness in recent years had a more dangerous level than the external one. In addition, it was revealed that similar problems with the level of debt burden are also presented in the EU countries since the value of the analyzed indicator – general government debt to GDP – exceeds 60%.
It is recommended to consider the experience of debt management reform of new members of the EU and, at the same time, post-socialist countries by other emerging economies.

In 2020, due to the COVID-19 pandemic, a moratorium was imposed on launching bankruptcy proceedings for enterprises in Ukraine. It was canceled in 2022 because of the war to encourage the company management to improve the efficiency of liquidity and solvency management, seeking ways to increase companies’ profitability and reduce the probability of bankruptcy. The study aims to determine the impact of liquidity on unprofitability, which can be considered an element in the management decision-making system to prevent bankruptcies of Ukrainian companies. The correlation-regression analysis was based on statistical data from Ukrainian companies for 2012–2019 and 2013–2020. The study found practically no connection between the unprofitability of Ukrainian companies and the decrease in the number of court cases in which a decision was made to recognize the bankruptcy of Ukrainian companies. On the other hand, there is a strong connection between Ukrainian companies’ liquidity and unprofitability. The constructed regression equation is statistically reliable and characterized by a high level of adequacy to real economic processes and phenomena. An increase in the general liquidity ratio by 1% leads to an increase in the unprofitability of Ukrainian companies by 0.0346%. According to the company size construct, the most substantial connection is recorded for medium-sized companies (the correlation coefficient is 0.927, the coefficient of determination is 0.860, and the built correlation-regression equation is characterized by statistical reliability and adequacy). In contrast, large, small, and micro enterprises have a weak and moderate connection.