Influence of accounting information on the level of financial security of systemically important

Economic Annals-ХХI: Volume 144, Issue 9-10(1), Pages: 94-97

Citation information:
Azarenkova, G., Moskalenko, O., & Piskunov, R. (2014). Influence of accounting information on the level of financial security of systemically important. Economic Annals-XXI, 9-10(1), 94-97. https://ea21journal.world/index.php/ea-v144-23/

Galyna Azarenkova
D.Sc. (Economics),
Professor,
Deputy Director for Science and International Relations,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv, 61174, Ukraine
azarenkova@khibs.edu.ua

Olena Moskalenko
PhD (Economics),
Associate Professor,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv, 61174, Ukraine
moskalenko.elena@mail.ru

Roman Piskunov
PhD (Economics),
Associate Professor,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv,
61174, Ukraine
r.a.piskunov@gmail.com

Influence of accounting information on the level of financial security of systemically important banks

Abstract. Introduction. Dynamics and inconsistency of market changes caused by the current stage of economic development induce the increased deregulation of cash flows in time and volume. The most important component of the reproductive relationships implementation mechanism is the banking system, so the main task should be prevention of financial danger for systemically important banks, which is the key to timely responding to accounting information signals.

Purpose of the article is development the approaches to determine the level of financial security of systemically important banks taking into account the influence of accounting information.

Results. Banking system has a specific role in the effective functioning of cash flow and the course of economic processes in the state, consisting in making payments, financing of other business entities and risk transformation. A key basis for the regulation of bank activity is accounting information, because it is the basis for the model development of multi-version management decisions which directly affect the level of financial security of systemically important banks. The accounting information allows determining the key stability indicators of banking sector. An effective tool to classify systemically important banks according to these indicators is trigonometric analysis, which graphically visualizes the results on the unit circle. That allows defining the level of financial security of systemically important banks and make comparisons between them. Among the mechanisms for providing the financial security of systemically important banks under the influence of accounting information signals, the decisive role have the mechanisms which operate at the level of a state and region, because they are the basis for the internal mechanisms development to increase the level of financial security of certain banks.

Conclusion. The key to raising the level of financial security of systemically important banks is development of effective accounting support and the financial risk management system that can respond to the dynamic change of updated information. The effective system creation of crisis early identification and prevention under the influence of accounting information signals allows the bank to implement timely the restructuring of its assets and liabilities in order to minimize the financial risks and provide the functioning stability of the banking system.

Keywords: Financial Security; Anti-Crisis Management; Financial Risk; Systemically Important Bank; Accounting Information

JEL Classification: Е58; G21; M41

References

1. Baranovskyi, O. (2009). The financial crisis: background, consequences and ways to prevent. Kyiv: Kyiv National University of Trade and Economics (in Ukr.).
2. Lobanov, A. (2009). Encyclopedia of Financial Risk Management. Moscow: Alpina Business Books (in Ukr.).
3. Azarenkova, G., Golovko, O., & Trydid, O. (2013). Improvement of the Bank’s Financial Stability Assessment. Knowledge – Economy – Society: Global and regional challenges of the 21st century economy (pp. 445-453). Cracow: Cracow University of Economics.
4. Pyle, D. (1997, May). Bank’s risk management: Theory. Report presented at the Conference on risk management and regulation in banking (pp.17-19). Jerusalem, Israel.
5. Maler, G. (1996). Derivative financial instruments: gains and losses. Moscow: INFRA-M (in Russ.).
6. Lewіs, M. (1999, January). The price of behaving rationally in a market meltdown. The New York Tіmes Magazіn, 24, 32.
7. Demirguс-Kunt, A., & Kane, Е. J. (2002). Deposit insurance around the globe: Where does it work?
   Retrieved from https://www2.bc.edu/edward-kane/depositInsArndGlobe.PDF
8. Danhu, Ch., & Sosnitskaya, O. (2010). Two years after the bankruptcy of Lehman Brothers: what conclusions did the financiers.
   Retrieved from http://dw.de/p/PC35 (in Russ.)
9. Piskunov, R. (2013). Regulation of cash flow movements in the system of financial risk management (Manuscript). Kharkiv: V. N. Karazin Kharkiv National University (in Ukr.).
10. Piskunov, R. (2012, December). Management of Bank Cash Flows in the Context of The III Basel Accord. Open access journal The advanced science, 5, 120-123.
11. Dubnickiy, V., Piskunov, R., & Taraskina, N. (2012, February). Geometric analysis of country risk. Biznes-inform (Business Inform), 2, 31-34 (in Russ.).
12. Vasyurenko, O. (2010). Valuation models of banking activities to ensure the stability of the banking system. Kyiv : University of Banking of the National Bank of Ukraine (in Ukr.).
13. Ukraine needs strategy before crisis (2010, August). Ukrainskyi biznes-resurs (Ukrainian Business Resource).
    Retrieved from http://ubr.ua/finances/macroeconomics-ukraine/ukraine-nujna-strategiia-pered-krizisom-57663 (in Russ.).
14. Berdar, M. (2009). Systemic approach to key elements of Financial Management Enterprise identifying. Teoretychni ta prykladni pytannia ekonomiky (Theoretical and Applied Issues of Economy), 20, 154-160 (in Ukr.).
15. Moskalenko, O. (2014). Accounting and information support of credit and investment bank activity. Visnyk Universytetu bankivskoyi spravy Natsionalnoho banku Ukrainy (Herald of University of Banking of the National Bank of Ukraine), 1(19), 218-221 (in Ukr.).

Received 30.07.2014