Macroeconomic analysis of the financial condition of banks in Ukraine

The reasons for the current financial instability, said in his report, Ph.D., associate professor of Lviv Institute of banking Vitaliy Rysin. The scientist said, sho preceded the current crisis the global financial boom brought on by several factors: a sharp increase in savings, extending the capabilities of real investment, low real interest rates in developed countries and the free movement of capital between them. In addition, the previous two decades were characterized by low inflation, resulting in rising asset prices and reduced the risk premium. That, in turn, stimulated the use of credit throughout the financial system. These trends are reinforced by financial innovation, which enable savings by regulatory barriers, providing preferential tax treatment. Thus, in the U.S. financial system a huge number of subprime-backed securities mortgages. A significant portion of their citizens to buy credits, and such transactions are often financed with high liquidity risk. In addition, during the period of boom, the overall level of cash bonuses for risk was extremely low. "Another reason for the large-scale crisis in America is a radical restructuring of the financial systems of developed countries during the rapid growth of the world market - said the speaker Category: Liquidity of the banking system of Ukraine