Problems and prospects of development of regulation methods of bank investment activity with derivative financial instruments
Journal Title: Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу: міжнародний збірник наукових праць - Year 2019, Vol 43, Issue 2
Abstract
The financial crisis of 2007–2009, the effects of which the world is experiencing today, has had a very negative impact on the economies of many developed countries. There are several dozen causes that have led to a downturn in the economy and a start of distrust in the banking sector. Indeed, the financial crisis has been caused by the interaction of many factors, among which the main focus is the boom in the market for risky mortgages, the undervaluation of financial risks, excess free money, and the global imbalance of investment and savings. Credit derivatives, which became the main tool for enriching and obtaining cheap resources, have become the cause of massive bankruptcies of financial institutions and investors. But are these financial instruments designed to be used to hedge risks, on the contrary, are the impetus for the collapse of the banking sector? The emergence of the financial crisis should be blamed for inefficient methods of regulating the investment and credit activity of commercial banks, as well as the unfairness of their risk management, but not the credit derivatives themselves. The article discusses the causes of the 2007–2009 crisis, as well as the implementation of the Basel Committee–s recommendations to prevent recurrence of negative events. The necessity of improvement of regulation methods of investment activity of banks (related to derivative financial instruments) to maintain the necessary level of liquidity in case of unforeseen situation is established.
Authors and Affiliations
A. O. Petruk
Keywords
Related Articles
- EP ID EP662404
- DOI -
- Views 105
- Downloads 0
Generation of tourist movement on the example of innovative state and private partnership in health resort city of Soletz-Zdruy
In spite of high competitiveness and turbulence of tourist environment Poland is an attractive region for travelling. The available variety of forms for active rest (geodesic conditions), rich cultural heritage, favorabl...
The relationship between the concepts «innovation», «innovativeness» and «innovation activity» in the enterprise management system: the experience of the Polish researchers
The article analyzes the conceptual apparatus in terms of management of innovative activity of enterprises. The feasibility for the relevance of research is carried out on the basis of analysis of statistical data in the...
Organizational provisions of accounting for inventories as component of information and communication system of enterprise
Communication and information have particular importance for management and are inextricably connected with accounting, the main objective of which is to provide operational information on the state of the company. Prima...
The procedure of evaluating the quality of accounting software
The article gives an overview of literary sources regarding the issues of software efficiency and reliability; analyzes international standards that regulate the qualitative characteristics of software products at differ...
Economic analysis of business processes of forestry enterprises
The article analyzes the research of scientists who devoted their works to the analysis of forestry activities. Two main forms of statistical reporting, which record the information on the performance indicators of fores...