Competitiveness of the world regional banking systems

Kovalenko Victoria
D. Sc. (Economics), Professor, Professor, Department of Banking, Odesa National University of Economics, Odesa, E-mail: kovalenko-6868@ukr.net, ORCID ID: https://orcid.org/0000-0003-2783-186X

Serhieieva Olena
PhD (Economics), Associate Professor, Department of Banking Odesa National University of Economics, Odesa, E-mail:lenasergeeva2007@ukr.net, ORCID ID: https://orcid.org/0000-0002-5523-3894

Cite this article:

Kovalenko V., Serhieieva O. (2023) Competitiveness of the world regional banking systems. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Konkurentospromozhnist rehionalnykh bankivskykh system svitu; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 7-8 (308-309), pp. 76-85.

Abstract

Under modern conditions, when all countries of the world have passed the COVID-19 pandemic and have been under the influence of russia’s military aggression against Ukraine for more than a year, negative dynamics are observed in all spheres of national economies, including financial sectors. Russia’s invasion of Ukraine has exacerbated the problems with supply chains and caused commodity shortages around the world. In addition to the economic implications, in the coming months and years, this will create particular challenges for the international banks operating in russia and Ukraine and linked to them as the banks must navigate operational challenges and a heightened sanctions regime. The geopolitical shock caused by russia’s invasion of Ukraine, together with the macro-financial consequences, have increased uncertainty and risks for the economy in Europe and other regions of the world. Under the conditions, the problem of ensuring the competitiveness of the world's regional banking systems deserves special attention. The purpose of the study is to analyze the development of the world’s regional banking systems and to develop the main strategic directions of their interaction in order to level geopolitical shocks. Despite the russian federation’s full-scale invasion of Ukraine in February 2022, the global financial market had already suffered from the global inflationary pressure and economic turmoil. Given that central banks, including the US Federal Reserve System, the European Central Bank and the Bank of England, are now implementing a clear program of raising interest rates and beginning to wind down stimulus measures, a new economic phase is predicted to be underway. The overall stability of the global financial system still looks reliable, and the first level aggregate capital continues to grow. The international rating of world banks is evidence that the world’s regional banking systems currently have a sufficiently high level of financial stability. Summarizing the discussion above, we can conclude that the key directions for the further functioning of the world’s regional banking systems are increasing stress resistance to fast-moving macro-financial and geopolitical upheavals; solving the tasks of digitization and strengthening the managerial capacity of the management bodies.

Keywords

regional banking systems of the world, competitiveness, bank capital, profitability, yield, financial stability.

JEL classification: C410, G210, G280, L110; DOI: 10.32680/2409-9260-2023-7-8-308-309-76-85

UD classification: 336.717.4:339.9

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