Some modern trends in the management of commercial banks

Loading...
Thumbnail Image
Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The scale of banks consolidation has taken on an unprecedented nature in recent decades. Large banks have much more opportunity to attract a longterm financial resources from the world capital markets, the qualitative and quantitative indicators of the bank created by the merger / absorption can be much better. On the other hand, absorption can be interpreted as a central element of the market-driven survival process, and the distinguishing criterion between absorbed or absorbing companies is the firm’s size rather than the norm of profitability or market valuation. The 2008-2009 global financial crisis has led to the need to improve international standards for regulation and supervision in the financial sector. In 2014, Basel IV’s revised standardized approach to market risk was published, focusing on three messages - 1. Risk; 2. Risk management; 3. Risk-oriented supervision. In addition, the present paper focuses on the importance of stress-testing on the external factors of the banking system in the modern stage, speculative risks, deposit risk and the importance of the deposit insurance system as a determinant of banks’ deposit policy. The article also points out that the share of the world countries, including Georgia, that actually have deposit insurance has increased since 2013.
Description
 Kovzanadze I., Kontridze G. (2014). tanamedrove sabanko saqme: teoria da praqtika. [Modern Banking Business: Theory and Practice. Tbilisi: Cezanne] (in Georgian).  Hughes A., Singh A. (2008). Pogloschenia i fondovi rinok [Takeovers and The Stock Market (in “FINANCE”, edited by Jhon Eatwell, Murry Milgate, Peter Newmenn). Transl. from English, Moscow (in Russian).  Basel IV: (2014.) Revised Standardized Approach for Market Risk. Invereasing Risk Sensitivity through the “Sensitivities –based Method”. PwC, 48p.  Minimum Capital Requirements for Market Risk: Standards / Basel Committee on Banking Supervision – Basel: Bank for International Settlements, 2016, 92p.  Basel III: (2017.) Financing Post-Crisis Reforms / Basel Committee on Banking Supervision – Basel: BIS, 162p.  Gogokhia M. (2019). saqartvelos saertashoriso sabanko urtiertobebis regulireba bazelis shetanxmebis safudzvelze. [Regulation of International Banking Relations of Georgia Based on the Basel Agreement.] Ivane Javakhishvili Tbilisi State Unversity, Challenges of Globalization in Economics and Business, The Inter national Scientific Conference, Tbilisi, Georgia. (in Georgian)  Blaschke W., Jones T., Majnoni G., Peria S-m. (2001). Stress Testing of Financial Systems: An Overview of Issues, Methodologies, and FSAP Experience// IMF Working Paper.  Stress Testing by Large Financial Institutions: Current Practice and Aggregation Issues, BIS,2000.
Keywords
Bank consolidation, risk management, Basel IV, deposit insurance
Citation
Economics and Business, №1, 2020, pp. 116-122
Collections