Research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2018, Vol 3, Issue
Abstract
The article examines the impact of banks performing operations involving transnational banking capital on the banking system of Ukraine through the use of the principal components analysis. This approach is related to the method of multidimensional statistical analysis and is widely used to reduce the dimension of an analyzed set of attributes, and to select the most informative indicators and classification features. From the research, it is found that the principal components analysis is based on the idea according to which structural properties of relations between variables can be determined by their dependence on fewer non-measureable (concealed, latent, hypothetical) general factors. The direct estimation of the impact of banks performing operations involving transnational capital on the banking system of Ukraine is carried out by means of the application package named Statistica. For this analysis, the following relative indicators showing how Ukraine’s banks perform operations involving transnational capital are used: 1) percentage of funds raised from legal entities; 2) percentage of funds raised from individuals; 3) percentage of owned capital; 4) percentage of profit / loss after tax; 5) percentage of assets; 6) percentage of loans and debts of legal entities; 7) percentage of loans and debts of individuals. Based on the research findings, it is shown that there are three principal components which take into account more than 5% of total variance. However, there is only one component among them the value of which exceeds 1. The second component equals 0.954179, meaning that it approaches 1. The scree plot shows that the breaking point can be viewed as the eigen-value of correlation matrix which equals 23.85%. Consequently, the two principal factors have an essential impact on the processes of foreign capital penetration into Ukraine. It is claimed that the expansion of transnational banking capital into the banking system of Ukraine is controversial. On the one hand, these trends are quite obvious. On the other hand, financial, economic, military, and political instability hampers such processes. In conclusion, it should be stressed that unlike other approaches, the research and methodological approach to scoring the impact of banks performing operations involving transnational capital on the banking system of Ukraine, is based on the principal components analysis. This makes it possible to develop an aggregate index which characterizes the impact of banks performing operations involving transnational capital on the banking system of Ukraine, and to use it for monitoring of structural changes in the banking system.
Authors and Affiliations
Nataliia Tkachenko, Oleksandr Momot
Keywords
Related Articles
- EP ID EP467713
- DOI -
- Views 101
- Downloads 0
Logistic costs and their classification
The research paper considers theoretical foundations for the concept of “logistic costs” and introduces a new definition for this term. The concept is viewed as a component of operating costs of enterprise related to sup...
International practices of using the cluster approach for the development of integration processes
The research paper considers the existing approaches to defining the essence of clusterization and clusters in foreign economies, and presents the analysis of conditions leading to the emergence and development of indust...
Insurance principles as a methodological framework for maintenance and growth of insurance relations in agriculture
The article emphasizes the necessity of adherence to the insurance principles as a decisive condition for maintenance and growth of mutually beneficial insurance relations in the agricultural sector. It is justified that...
Provision of natural resources for innovation-based development in the agrarian sector of the economy
The article evaluates the provision of natural resources for innovation-based development in the agrarian sector of the economy. The issues of regional concentration of agricultural land and improvement of land managemen...
Mathematical models of unshadowing the wages
The article addresses a social and economic phenomenon of shadow economy, which is typical for many countries and may result in a macroeconomic imbalance. The latter hinders the sustainable growth of the economy and lead...