Innovative Instruments and Legal Mechanisms of Bank Capitalization: National Features and World Trends

Subject Areas : Design of Experiment

Viktoriia Vovk ¹ , Yuliia Zhezherun ² , Liudmyla Gudz ³ , Oleksandr Perederii ⁴

1 - Kyiv National University of Trade and Economics, Ukraine, Kyiv, Ukraine
2 - Cherkassy Educational-Scientific Institute of Banking University, Cherkassy, Ukraine
3 - V.N. Karazin Kharkiv National University, Kharkiv, Ukraine
4 - V.N. Karazin Kharkiv National University, Kharkiv, Ukraine

Received: 2020-11-24 Accepted : 2020-11-24 Published : 2021-01-01

Keywords: Capital, Innovative instruments, Bank capitalization, Legal mechanisms, Financial stability, Recapitalization, Nationalization,

Abstract :

The article investigates the role of bank capital in financing reproduction processes and increase of economic growth indicators, considers the essence of the concept of “bank capitalization”, determines the structure and main sources of bank capital increase. Taking into account the fact that Ukraine and Poland have similar vectors of economic development, the current practices of increasing the bank capitalization, as well as the peculiarities of the action of the governments of the two countries in the negative financial and economic crisis, positive and negative aspects of regulatory policies aimed at restoring financial stability and resistance of the banking sector of Ukraine and Poland have been identified. The study of legal aspects of regulating the capitalization of banks allowed to generalize the requirements for the level of capitalization by the central banks of Ukraine and Poland, as well as to determine the features of regulating the capital adequacy of banks by supervisors in the context of Basel III. The structure and dynamics of the capital of banks of Ukraine and Poland during 2012-2019 have been analyzed. The relationship between the level of capitalization and the level of economic development of the country has been revealed. The peculiarities of the recapitalization of banks with the participation of the state have been clarified. The main attention has been paid to the complex analysis of the experience of capitalization of Polish banks, and the ways of its use in Ukraine have been substantiated.

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