Assessment of financial stability: indicators and composite indices in Ukrainian and international practice
Economic Annals-ХХI: Volume 140, Issue 3-4(2), Pages: 51-54
Citation information:
Piatnytskyi, D. (2014). Assessment of financial stability: indicators and composite indices in Ukrainian and international practice. Economic Annals-XXI, 3-4(2), 51-54. https://ea21journal.world/index.php/ea-v140-13/
Dmytro Piatnytskyi
Post-Graduate Student,
Institute for Economics and Forecasting of the Ukrainian National Academy of Sciences
26 Panas Myrny Str., Kyiv, 01011, Ukraine
piatnytskyi_dv@mail.ru
Assessment of financial stability: indicators and composite indices in Ukrainian and international practice
Abstract. The article is devoted to the parameters that characterize stability of the financial sector and its individual segments – financial soundness indicators (Financial Soundness Indicators, FSIs), which were proposed by the International Monetary Fund and are now being actively implemented in practice by many countries. Detailed analysis of the dynamics of key indicators that assess stability of the depository institutions in the Ukrainian banking system are presented from the 4th quarter of 2005 to the 3rd quarter of 2013. Monitoring indicators showed a decrease vulnerability of banks, including: regulatory capital to risk-weighted assets, nonperforming loans to total gross loans, return on assets, return on equity, foreign-currency-denominated loans to total loans, foreign-currency-denominated liabilities to total liabilities, customer deposits to total (non-interbank) loans, geographical distribution of loans to total loans. Examples of the FSIs indicators usage in order to form composite indices that represent the integrated assessment of financial stability are introduced.
Keywords: Financial Soundness Indicators; Financial Stability; Composite Indices
JEL Classification: С43; Е63
References
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Received 24.02.2014