WORLD BANKING SYSTEM: POST-CRISIS RECOVERY?
DOI:
https://doi.org/10.35774/jee2019.03.321Keywords:
Bank assets, financial depth, global financial crisis, global regions, postcrisis recovery, and world banking system.Abstract
The article studies the state of the world banking system recovery after the global crisis. It is stated that by the indicators of financial depth, capital adequacy and profitability of the biggest banks the world banking system is nowadays the most stable and profitable for the entire post-crisis period of its development. It is noted that the structure of the modern world banking system corresponds to the spatial structure of the world economy, which consists of different taxonomic levels of regions and where the role and importance of global regions is being enhanced against the background of the globalization processes deepening. Based on the study of changes in the distribution of bank assets and banks’ profits between global regions, the rankings of the biggest banks in the world, indicators of return on assets and return on equity of banks from different regions, regional peculiarities of mergers and acquisitions in the banking sector, progress in the implementation of the requirements of the Basel Committee on Banking Supervision, regional features of the post-crisis recovery of the world banking industry are identified. It is proved that there is an increasing degree of unevenness in distribution of bank assets between global regions, and a tendency of increasing bank assets concentration in three main regions – Asia Pacific, American and European regions – is found out. On the basis of assessment of the transformational shifts in the regional structure of the world banking industry changes of the global regions role in the world banking system in the process of its post-crisis recovery are identified.
JEL: G15, G21.
References
Bank for International Settlements Statistics: Credit to the non-financial sector [Electronic resource]. - Access mode: https://www.bis.org/statistics/ totcredit.htm
Bank for International Settlements. (2018, January). Structural changes in banking after the crisis (No. 60). Committee on the Global Financial System Papers [Electronic resource]. - Access mode: https://www.bis.org/publ/cgfs60.htm
Bank for International Settlements. (2019, May). Sixteenth progress report on adoption of the Basel regulatory framework. Basel Committee on Banking Supervision Report, pр. 6-76 [Electronic resource]. - Access mode: https://www.bis.org/bcbs/publ/d464.pdf
Deloitte Center for Financial Services. (2019). 2019 Banking and Capital Markets Outlook: Reimagining transformation, 40 р. [Electronic resource]. - Access mode: https://www2.deloitte.com/content/dam/Deloitte/global/ Documents/Financial-Services/gx-fsi-dcfs-2019-banking-cap-markets-outlook.pdf
Deloitte Center for Financial Services. (2019). 2019 Banking and Capital Markets M&A Outlook: An open door for deal making [Electronic resource]. - Access mode: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financialservices/us-banking-cm-ma-outlook-report.pdf
Fischer, S. (2016, November). Is there a liquidity problem post-crisis? At «Do We Have a Liquidity Problem Post-Crisis?» Conference, the Initiative on Business and Public Policy at the Brookings Institution, Washington, D. C. [Electronic resource]. - Access mode: https://www.federalreserve.gov/newsevents/speech/fischer20161115a.htm
IMF. (2003-2019). Global Financial Stability Report. Washington, IMF- Access mode: https://www.imf.org/en/Publications/GFSR
Keeler, D. (2003, October). Features: The World's Biggest Banks 2003. Global Finance- Access mode: https://www.gfmag.com/magazine/october2003/features-the-worlds-biggest-banks-2003
Kozyuk, V. (2009). Global financial consolidation: consequences for the formation of a global-centric model of financial stability. Halytskyi ekonomichnyi visnyk, 1, 3-10 (in Ukrainian).
Kurylyak, V. (2010). Financial and economic aspects of the formation of the global civilizational landscape of the world economy: the driving forces and theories. Svit finansiv, 3, 158-168 (in Ukrainian).
Mckinsey Company. (2018, November). New rules for an old game: Banks in the changing world of financial intermediation. McKinsey Global Banking An-nual Review- Access mode: https://www.mckinsey.com/industries/financialservices/our-insights/banks-in-the-changing-world-of-financial-intermediation
Mozgovyj, О., Pavliuk, О. (2017). The regulatory environment of the world banking system development. Mizhnarodna ekonomichna polityka, 1, 28-45 (in Ukrainian).
Myles, D. (2018, July). Top 1000 World Banks 2018. The Banker- Access mode: https://www.thebanker.com/Top-1000-World-Banks/Top-1000-WorldBanks-2018?ct=true
Naumenkova, S. (2015). Basel I, II, III: the development of approaches for strengthening of prudential framework. Visnyk Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka, 12(177), 39-48 (in Ukrainian). https://doi.org/10.17721/1728-2667.2015/177-12/5
Pavliuk, О. (2014). Modern trends in global banking. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Seriia: Ekonomichni nauky, 9 (4), 22-25 (in Ukrainian).
Sanders, D. (2018, November). Biggest banks in the world 2018. Global Finance - Access mode: https://www.gfmag.com/magazine/november2018/biggest-banks-world-2018
Scott, A. J., Storper, M. (2003). Regions, globalization, development. Regional Studies, 37 (6-7), 579-593. https://doi.org/10.1080/0034340032000108697a
Sokhatska, О. (2010). New order in the global financial market: post-crisis projects and realities. Zhurnal yevropeiskoi ekonomiky, 1 (9), 93-107 (in Ukrainian).
Storper, M. (2000). Globalization, localization and trade. In: The Oxford Handbook of Economic Geography. Oxford (U. K.), Oxford University Press.
Stukalo, N. V., Lytvyn, M. V. (2011). Ukrainian banking system development in the context of the Basel Committee's recommendations. Finansy Ukrainy, 7, 62-72 (in Ukrainian).
Sus, L. V. (2018). Current trends in world banking. Efektyvna ekonomika, 4- Access mode: http://www.economy.nayka.com.ua/index.php?op=1&z=6231(in Ukrainian).
Top Banks in the World 2010 - Access mode: https://www.relbanks.com/ worlds-top-banks/assets-2010
Tsyhanova, N.V. (2013). Trends in bank capital consolidation in terms of financial globalization. Aktualni problemy mizhnarodnykh vidnosyn, 117 (2), 193-202 (in Ukrainian).
Yehorycheva, S. (2015). Modern trends in global banking. In: The Economy of Bulgaria and European Union - Contemporary Challenges and Solution Approaches. Sofia, University of National and World Economy, pp. 38-44.
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).