Conceptualization of modern theories of system risk regulation of the banking sector of the economy

Zherdetska Lilіia
Dr. Sc. (Econ.), Assoc. Prof., Head of the Department of Banking, Odessa National Economic University, e-mail: lzherdetska@gmail.com

Cite this article:

Zherdetska L. Conceptualization of modern theories of system risk regulation of the banking sector of the economy. Scientific Bulletin of the Odessa National Economic University. 2020. № 1-2 (274-275). pp. 119-132.

Abstract

Object of study. The object of the study is the process of regulating the system risk of the banking sector of the economy. Given the limited experience in the use of macroprudential tools, one of the most problematic areas is the lack of new scientific knowledge and conceptualization of approaches to regulating the systemic risk of the banking sector of the economy. Methodology. The information base of the research have become the scientific publications on the issues of state regulation of the banking sector of the economy, ensuring financial stability and minimizing system risk. The following research methods such as: scientific abstraction, induction and deduction, analysis and synthesis (with clarification of the categorical apparatus of research and systematization of theories of state regulation of the economy); system-structural analysis (in structuring theories of regulation by objectives and justification of the need for government intervention in the economy); logical-historical (in the periodization of the development of conceptual principles of regulation of the banking sector of the economy) have been used in the study. The synergy of modern theories of economic regulation has become the basis for the conceptualization of an effective system of regulation of the banking sector of the economy. Results. Based on theoretical generalizations, two main approaches to economic regulation - positive and normative have been identified in the article. Based on the achievements of modern theories of regulation, the need and goals of regulation of the banking sector of the economy have been formulated: at the micro level - is the protection of the rights of consumers of banking services and ensuring the financial stability of banks; at the macro level - maintaining price stability, ensuring the financial stability of the banking sector of the economy and making a positive contribution to economic growth. Scientific novelty. The conceptual approaches to the regulation of system risk of the banking sector of the economy have been developed in the article. Theoretical and (or) practical significance. The implementation of the proposed approaches will increase the rationality and validity of decisions of state institutions in the field of regulation of the banking sector of the economy.

Keywords

state regulation of economy, normative and positive approaches to regulation, goals of state regulation, bank, banking sector, systemic risk, prudential and protective regulation.

JEL classification: G210; G280; А190

УДК: 336.717.1: 330.131.7

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