Financial Security of Banking in a Digitalized Economy
Hariaha L. О., Kulish R. R.

Hariaha, Lesia О., and Kulish, Rostyslav R. (2019) “Financial Security of Banking in a Digitalized Economy.” The Problems of Economy 4:163–171.
https://doi.org/10.32983/2222-0712-2019-4-163-171

Section: Finance and banking

UDC 336.71:338.28

Abstract:
The aim of the article is to study the theoretical bases of financial security of banking in a digitalized economy and develop proposals for improving methodological approaches to assessing financial security of a bank. By summarizing the approaches to the interpretation of financial security of the banking system and an individual bank, the authors’ definition of these concepts with regard to digitalization is proposed. In view of the studied aspect, financial security of a bank is defined as the state of financial relations when conditions are created for an effective use, management and formation of the bank’s resource base, enhancement of its financial solvency to counteract destabilizing factors in the context of protection of databases in the bank’s network and on the Internet through implementing digital programs and algorithms which can ensure a stable operation of the bank and increase the level of security in the virtual information space. The classification of threats to financial security of the banking system is systematized. Indicators of financial security of banking activities with regard to digitalization are justified. Classical indicators of a bank’s financial security are indicators of financial stability; indicators of asset quality; indicators based on the structure of obtained and borrowed funds; indicators based on capital adequacy; liquidity indicators; profitability indicators. To determine if the bank has certain units, protective equipment and products related to digitalization and Internet technologies, additional indicators of financial security of a bank are proposed. There proposed an improvement of the methodology for assessing financial security of a bank with regard to digitalization of banking activities, which involves calculating the integral indicator of a bank’s financial security (taxonomy coefficient). In further studies, it is advisable to test the proposed methodology for assessing financial security of a bank with regard to digitalization with the use of the example of an individual banking institution.

Keywords: bank, banking system, financial security.

Fig.: 1. Tabl.: 6. Formulae: 1. Bibl.: 19.

Hariaha Lesia О. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management and Information Technology, Cherkasy Institute of Banking of the University of Banking of the National Bank of Ukraine (164 Enhelsa Str., Cherkasy, 18028, Ukraine)
Email: garyaga@ukr.net
Kulish Rostyslav R. – Masters Student, Cherkasy Institute of Banking of the University of Banking of the National Bank of Ukraine (164 Enhelsa Str., Cherkasy, 18028, Ukraine)
Email: kulish.rost2@gmail.com

List of references in article

Rudenko, M. V. “Tsyfrovizatsiia ekonomiky: novi mozhlyvosti ta perspektyvy“ [Digitizing the Economy: New Opportunities and Perspectives]. Ekonomika ta derzhava, no. 11 (2018): 61-65.
Hariaha, L. O. “Rozvytok finansovoho rynku v umovakh tsyfrovizatsii ekonomiky“ [The Development of Financial Market in the Conditions of Digitalization of Economy]. Biznes Inform, no. 11 (2018): 388-393.
Baranovskyi, O. “Spetsyfika finansovoi bezpeky v bankivskii sferi“ [Specificity of Financial Security in Banking]. Visnyk NBU, no. 9 (2014): 17-23.
Borets, M. A. “Ekonomichna sutnist ta pidkhody do vyznachennia poniattia «finansova bezpeka banku»“ [Economic Essence and Approaches to Definition of the Term "Financial Security of the Bank"]. Upravlinnia rozvytkom, no. 2 (2014): 151-154.
Lisniak, A. Ye. “Chynnyky finansovoi bezpeky bankiv“ [Factors of Financial Security of Banks]. Visnyk universytetu bankivskoi spravy, no. 3 (30) (2017): 77-82.
Hrebeniuk, N. O. “Finansova bezpeka bankiv: systema rozpiznavannia zahroz ta usunennia ryzykiv“ [Financial Security for Banks: a System for Identifying Threats and Eliminating Risks]. Visnyk Kharkivskoho natsionalnoho universytetu imeni V. N. Karazina. Seriia «Ekonomichna», no. 91 (2016): 53-64.
Baranovskyi, O. I. “Bankivska bezpeka: problema vymiru“ [Banking Security: a Measurement Problem]. Ekonomika i prohnozuvannia, no. 1 (2006): 7-26.
Finansova bezpeka pidpryiemstv i bankivskykh ustanov [Financial Security of Enterprises and Banking Institutions]. Sumy: DVNZ «UABS NBU», 2009.
Bolhar, T. M. “Finansova bezpeka bankiv v umovakh rynkovoi transformatsii ekonomiky Ukrainy“ [Financial Security of Banks in the Conditions of Market Transformation of Ukrainian Economy]: avtoref. dys. … kand. ekon. nauk : 08.00.08, 2009.
Yevchenko, N. H., and Kryklii, O. A. “Vplyv podatkovykh ryzykiv na finansovu bezpeku banku“ [Impact of tax Risks on the Financial Security of the Bank]. Problemy i perspektyvy rozvytku bankivskoi systemy Ukrainy, no. 25 (2009): 45-52.
Artemenko, D. A. “Mekhanizm obespecheniya finansovoy bezopasnosti bankovskoy deyatelnosti“ [The Mechanism for Ensuring the Financial Security of Banking]: avtoref. dis. … kand. ekon. nauk : 08.00.10, 1999.
Finansova bezpeka bankivskoi diialnosti [Financial Security of Banking Activities]. Sumy: DVNZ «UABS NBU», 2010.
Vovk, V. Ya. “Teoretychni zasady zabezpechennia finansovoi bezpeky banku“ [The Theoretical Foundations of Providing Financial Safety of Bank]. Problemy ekonomiky, no. 4 (2012): 200-204.
Hrytsenko, R. “Ekonomichna bezpeka bankivskoi systemy Ukrainy“ [Economic Security of the Banking System of Ukraine]. Visnyk Natsionalnoho banku Ukrainy, no. 4 (2003): 27-28.
Khytrin, O. I. “Finansova bezpeka komertsiinykh bankiv“ [Financial Security of Commercial Banks]. Finansy Ukrainy, no. 11 (2010): 118-124.
Dmytrov, S. O. “Upravlinnia finansovoiu bezpekoiu komertsiinoho banku“ [Management of Financial Security of a Commercial Bank]. Finansovyi prostir, no. 2 (6) (2012): 11-15.
Fadieiev, D. A. “Finansova bezpeka bankivskoi diialnosti v Ukraini“ [Financial Security of Banking Activity in Ukraine]. http://www.rusnauka.com/5_NITSB_2009/Economics/40908.doc.htm
Hariaha, L. O. “Udoskonalennia upravlinnia finansovym rezultatom banku“ [Improving the Management of the Bank's Financial Result]. Modern Economics. 2017. http://modecon.mnau.edu.ua/issue/4-2017/UKR/hariaha.pdf
Pestovska, Z. S. “Indykatory finansovoi bezpeky bankivskoi diialnosti: makro- ta mikroekonomichnyi rivni“ [Financial Security Indicators for Banking: Macro and Microeconomic Levels]. duan.edu.ua/uploads/finansy14-15/11137.doc