Holdings of Government Bonds by Commercial Banks during the Financial and Debt Crisis in Europe

Author(s): Vladimír Gvozdják,Božena Chovancová / Language(s): English Publication Year: 0

The government bonds of the EU countries were considered a safe investment amongst investors and asset managers. The main motive for their holding by commercial banks was to achieve additional revenue from investing spare funds and to store liquidity in them since they can be quickly sold on the secondary market or used as a collateral in refinancing operations. In this working paper we focus on the current issues related to government bond holdings by commercial banks. With the advent of financial and debt crisis some countries failed to meet their liabilities connected with bonds towards investors. This changed the global view of sovereign bonds as the safest form of investment. Based on the analysis of data provided by the Statistical Data Warehouse of the European Central Bank we focus on the evolution of government bond holdings by commercial banks during the debt crisis in Europe in 2010 – 2014 in selected EU countries. By using the panel data regression we will try to estimate the impact of some of the significant determinants which influenced the volume of the holdings – namely credit rating of the sovereign bonds and their interest rates. This regression suggests that there is a correlation between these independent variables and the holdings by commercial banks.

Comparison of Health Care Results in Public Health Systems of European Countries

Author(s): Viera Pacáková,Pavla Jindrová,David Zapletal / Language(s): English Publication Year: 0

Health of citizens is a precondition for economic prosperity. Ensuring optimal functioning of health systems at limited financial resources of countries and regions is a difficult task. Its solution requires a lot of information that can be obtained only by appropriate analysis of data collected by authorized world, European and national institutions. About the state of public health systems there are collected and published a number of data on the regional, national, EU or OECD countries, continental and the world level. These databases can be used for comparative analyses on health status, risk factors to health, health care resources and utilization, as well as health expenditure and financing. Huge differences in health and healthcare exist between and within countries and regions. The aim of this article is to present the results of application of multivariate comparison statistical methods, regression analysis, factor analysis and cluster analysis, which provide an overview of the health care status and public health systems expenditures, various causal relations and regional differences or similarities. This information is essential to the development of national and international health policies for treatment and financial budget of public health systems.

Prediction of Future Development of the World Economy under Conditions of Negative Interest Rates

Author(s): Oldřich Rejnuš / Language(s): English Publication Year: 0

The paper deals with the problems of contemporary way of using interest rates within the framework of monetary regulation, with special focus on cases when extremely low, or even negative rates are applied. The first part is focused on theoretic definition of the meaning and function of interest rates in financial and economic system in the sense of „standard“ economic theory, or in accordance with individual economic approaches. Subsequently, the influence of contemporary extremely low or even negative interest rates of central banks are analyzed, as well as their influence on the activities of economic subjects, with special attention to individual sorts of financial institutions, namely its influences on their economic results and on fulfilment of their mission. And, subsequently, it defines and characterizes the impacts of contemporary monetary policy of the world most important central banks on functioning of economy of individual the most important states or multinational economic units, as well as world global economy. Based on achieved results, future development is predicted, both from the point of view of economic development and from the standpoint of future impacts on contemporary human society.

Shared Management between the European Commission and Romania on the Implementation of European Structural and Investment Funds

Author(s): Iulian Miserciu / Language(s): English Publication Year: 0

The European Commission (EC) and Romania ensure a shared management of European funds and the principles governing the current financial framework are those of sound financial management. For each operational program, European regulations make mandatory the existence of the following authorities: the management body (MA), the certifying body (CA) and the audit institution (AA), which must operate independently of each other. Each Member State has the freedom to create its own institutional framework, if the three authorities mentioned in the European regulations are clearly defined and delineated.The present article aims to present whether the management and control system (MCS) implemented at the Romanian level is too bureaucratic if too many authorities have been created on the European Commission's cash flow. At the same time, some of the main causes will be identified, which may lead to a lack of beneficiaries' interest in accessing the funds allocated to certain programs. Some of these cases originate from the 2007-2013 programming period where Romania was sanctioned by the European Commission with many financial corrections due to systemic irregularities identified in the process of public procurement procedure, the evaluation and selection process projects. At the same time, the lack of funding due to the failure to complete some projects in time in December 2015 will be considered, as it is compulsory to ensure the necessary public and private financial resources from the own local budgets or from the state budget in order to be able to be finished.

A Vision Re Trans Meridian Connectivity of Eastern European Union Countries (EEUC)

Author(s): Nikola Yankov / Language(s): English Publication Year: 0

In this article we discuss the Eastern European Union Countries (EEUC) issue of the European contenentalisation/re-continentalisation process. We point out how the tracing, projecting and realizing of Trans continental meridian transportation corridors and axes could facilitate the development of peripheric and marginalized regions.The article is presenting a view (vision) regarding the Trans meridian transport connectivity of Eastern European Union countries and in particular – Bulgaria and Romania. It states that concrete transport corridors axes, sub axes and corridors are an important tool for integrated and joint development (economic, social, ecologic) of some less developed regions in the mentioned countries.The article also pointed out that it is needed Transportation grid innovation that make the regional development to happen. They affect the Balkan Peninsula Transport Grid vision with parallel and meridian axes and corridors.

Възможности за оценяване на социално-икономическото състояние на държавите от Европейския съюз

Author(s): Metodi Hristov / Language(s): Bulgarian Publication Year: 0

The main purpose of this study is to show how, from a methodological point of view, the socio-economic situation of the countries of the European Union (EU) can be assessed. To achieve it, pre-selected macroeconomic indicators and information based on Eurostat data for the period 2015-2020 are used. The first part of the study treats the assessment of the condition of these countries through separate use of every indicator, and the second part is devoted to the possibilities of using an integrated approach, ie. by simultaneously using of all selected indicators. It is assumed that the results of the evaluation through the separate use of the indicators should be the basis of the integrated approach.

Transformacja łańcucha dostaw. Studium przypadku przejęcia ukraińskiego oddziału globalnej firmy produkcyjnej

Author(s): Adam Sadowski,Tomasz Gresik / Language(s): Polish Publication Year: 0

Supply chain management is subject to transformations that result from both functional and structural changes. The greatest challenges for maintaining the efficiency of the supply chain processes are mergers and acquisitions, which require deep interference in the structure of the supply chain. In the case of global supply chains, it is worth mentioning that the cultural aspects influence transformation and their pace of introduction. In this chapter we presented the process of taking over the Ukrainian branch of the global production company DEF (a fictitious name) and including it in the management structures of Central Europe (CE).

Financial management in supply chain as cross-cultural competence

Author(s): Anna Bruska / Language(s): English Publication Year: 0

Global character of supply chains imposes on its participants contacts in highly differentiated cultural context. Culturally-led background of business models results in different practices in everyday management of operations in supply chains, among others also in differences in financial management. To be prepared for the cooperation in other cultural milieu, supply chain managers need to be aware of those differences, and to acquire the cross-cultural competence in the financial domain.Three mains culturally formed models of supply chain financing: Chinese, Muslim and European need to be understand and cross-culturally applied to enhance the ability of supply chain managers to support successfully in the international exchange. The text aims to describe the aforementioned models and to explain its consequences for supply chain financing.

Многогодишната финансова рамка на Eвропейския съюз и неговите основни цели и ценности

Author(s): Dencho Georgiev / Language(s): Bulgarian Publication Year: 0

Brexit is an opportunity for the EU to bring its finances in line with its fundamental aim of cohesion and with its fundamental values of equality, democracy and the rule of law, incl. the requirement of Art.175 TFEU that all its policies and actions and the implementation of its internal market shall contribute to the achievement of the objectives of cohesion. This could be done by eliminating the regressive elements and introducing progressivity into the system of ‘own resources’ and the financing of the policies of the EU. In the new MFF progressivity could be introduced for Member States’ contributions based on GNI, with a coefficient which would reflect the percentage deviation of the respective Member State from the EU average GNI per capita. ‘Automatic progressive stabilizers’ could take the form of ‘progressive national co-financing' for Member States above the cohesion threshold of 90% of the EU average GDP per capita, with a progressive increase of national co-financing depending on the deviation from the EU average GDP per capita.

Wpływ pandemii COVID-19 na rynek i efektywność ubezpieczeń na życie z ubezpieczeniowymi funduszami kapitałowymi

Author(s): Anna Ostrowska-Dankiewicz / Language(s): Polish Publication Year: 0

Insurance performs a variety of functions in the economy. Their basic task is to provide the insured with protection in case of occurrence of random events specified in the contract. Market practice shows that such a limited function of classic insurance proved to be insufficient, especially at the time when insurance products appeared which, in addition to their protective function, allow savings to be multiplied. Such products are life insurance with insurance capital funds. However, the emergence of the COVID-19 pandemic caused unexpected difficulties in the conduct of business by enterprises, including insurance companies. These difficulties manifested themselves in a periodic decline in premiums written, and in relation to life insurance with UFK also in a periodic deterioration of their effectiveness due to a slump in the financial markets. The aim of this paper is to present the impact of the COVID-19 pandemic on the market of life insurance linked with insurance capital funds and to discuss the trends in the volume of sales of life insurance with UFK and in the effectiveness of investments in insurance capital funds.

Pojęcie równowagi na konkurencyjnym rynku ubezpieczeń

Author(s): Łukasz Kuryłowicz,Adam Śliwiński / Language(s): Polish Publication Year: 0

The article shows the possibility of analyzing the insurance market by using the Rothschild–Stiglitz equilibrium model and its subsequent modifications. As an example the Polish market of compulsory third party liability insurance was used. The first part of the article describes this market, both in terms of its structure and the financial results of insurance companies operating in the group 10 of insurance. In the next part, the main focus is on describing the assumptions of the Rothschild–Stiglitz model both for the markets characterized by full common knowledge and those operating under the conditions of information asymmetry. In the last part, the authors used the Rothschild–Stiglitz model to simulate the market behavior after having introduced a new type of insurance contract which allowed access to information collected byon-board ADR recorders. The simulation showed that, in accordance with the model, the use of new technologies can bring the market closer to the state of equilibrium.

Instytucjonalne uwarunkowania niestabilności na rynku ubezpieczeń. Studium przypadku holdingu American International Group, Inc.

Author(s): Lyubov Klapkiv,Faruk Ulgen / Language(s): Polish Publication Year: 0

The aim of the article is to analyze the institutional conditions of instability that occurred on the insurance market during the global financial crisis (GFC) on the example of the American International Group, Inc. The global financial crisis of 2007–2008 called into question the ability of liberalized financial markets to function in a stable manner in the long term and questioned the positive contribution of financial innovation to economic development. Numerous and varied factors played a role in this process: low interest rates, easy and accessible credit, loose regulations, “toxic” mortgage loans leading to high-risk financial operations in innovative products. As a result of the crisis, attention has shifted to the banking sector as it has been the most important source of instability in the financial market. The insurance sector is usually considered a minor player in the financial market but clearly regulated. The total assets of European Union banks in 2019 accounted for EUR 49.3 trillion, and the total assets of the EU insurance sector: EUR 12,706.1 billion. However, the case of AIG shows that the role of insurance companies in generating and spreading financial instability is underestimated. It can also be concluded that the insurance sector in the United States of America still remains insufficiently regulated. The collapse of AIG was a combination of defects and violations in the regulatory mechanisms and the lack of appropriate legislation, which allowed for the appearance of certain elements of fraud in the functioning of the insurance market.

Porządkowanie liniowe z wykorzystaniem wskaźników finansowych zakładów ubezpieczeń w Polsce

Author(s): Anna Gierusz,Agnieszka Pobłocka / Language(s): Polish Publication Year: 0

Insurance companies play a very important role of investors and stabilizers in the economy of a country and of the world. In Poland, in 2019, 58 insurance companies conducted insurance activities. How to rate/evaluate insurance companies, their financial condition, using many technical and economic indicators at the same time? How to choose diagnostic variables? How to build a ranking of insurance companies according to a specific aggregation criterion of selected insurance characteristics? The aim of the study is to assess the financial condition of insurance companies according to synthetic objective functions containing simultaneously many technical and economic insurance values. Secondary goal is to determine the hierarchy of the surveyed insurance companies according to one of the synthetic measures applied. For this purpose, one of the methods of multidimensional comparative analysis will be used–linear orderingfor pattern and non-pattern methods using set of insurance statistics from financial results published by The Polish Chamber of Insurance.

Мерки на европейските институции за ограничаване на въздействието на пандемията от COVID-19 върху икономиките на страните членки на Европейския съюз

Author(s): Aglika Kaneva / Language(s): Bulgarian Publication Year: 0

In this paper, the measures of the European Commission and other European institutions such as the European Investment Bank and the ECB for limiting the consequences of the COVID-19 pandemic on the EU Member States’ economies have been examined. An analysis has been made of the actions at the European level in various fields, such as State aid, the EU budget, funding from the EU cohesion policy, fiscal policy, support for the sectors most affected by the pandemic – agriculture and fisheries and transport, monetary policy and the EU prudential rules for banks.

Finansyzacja w Polsce w latach 2010–2020 – skala i problemy

Author(s): Paweł Marszałek / Language(s): Polish Publication Year: 0

The aim of the chapter is an attempt to assess the scale of financialisation in the Polish economy in 2010–2012. The starting point for the considerations is the synthetic characteristics of financialization – its definition, features and factors determining the phenomenon. Next, the consequences of financialization are discussed, and then – with the help of the most frequently used measures of this phenomenon – the scale of financialization in Poland is presented.

Z doświadczeń strategii bezpośredniego celu inflacyjnego w Polsce – realizacja i próba oceny

Author(s): Filip Kliber / Language(s): Polish Publication Year: 0

Since 1999 Direct Inflation Targeting had been the foundation of Polish central bank monetary policy. The implementation of this strategy took place in changing economic and institutional conditions. It was also accompanied by profound changes in the monetary policy itself. The main aim of this paper is to present the premises and conditions for the implementation of the Inflation Targeting strategy, with particular emphasis on the structure and assumptions adopted in Poland. The implementation of the Inflation Targeting strategy in Poland in individual years was also characterized as well as the factors - positive and negative - influencing its effectiveness. A literature review on the effectiveness of the implementation of the Inflation Targeting strategy in Poland was also carried out and an original attempt was made to synthetically evaluate the inflation target implemented by the NBP.

Systemy gwarancji depozytów osób fizycznych w państwach Grupy Wyszehradzkiej

Author(s): Dawid Banaś / Language(s): Polish Publication Year: 0

The deposit guarantee systems that are part of the financial safety net are important elements contributing to the stability of the banking sector. Their existence gives depositors a sense of security, which translates into a higher savings rate in a country. The shape of deposit guarantee systems is adjusted to the banking sector operating in a country, which results in observable differences in individual institutions of this type. This can be noticed, for example,in the Visegrad Group countries, although it was more visible in the period before they joined the European Union, as implementing aspects related to the European Deposit Insurance Systemis currently underway. Although the applicable international regulations (mainly EU directives) affect the shape of the functioning deposit guarantee systems, there are still differences between them, for example in the method of determining premiums (they consider the risk taken or not, depending on the country). The author chose this group of countries from the Visegrad Group, as they were the first countries from the Eastern bloc to transform the banking sector. A comparative analysis of solutions that were decided in the countries of the Visegrad Group is the aim of the study. The work presents the applicable legal solutions and analyzes indicators e.g., the coverage ratio.

Banki spółdzielcze w sektorze bankowym w Polsce – lata 2010–2020 oraz perspektywy rozwoju i wyzwania

Author(s): Anna Iwańczuk-Kaliska,Arkadiusz Kulig / Language(s): Polish Publication Year: 0

The aim of the study is to assess the importance of cooperative banks in Poland in the years 2010–2020 in terms of their credit and deposit activities and to try to determine the prospects for their development on the domestic market in the context of global and local challenges. The first part is an introduction. The second one presents the development of cooperative banks in the years 2010–2020 on the basis of selected elements of the sector’s balance sheet. The third part of the study includes an analysis of the market shares of cooperative banks in the banking sector in Poland. In the fourth part, the quality of the loan portfolio of cooperative banks and the scale of reserves created to cover credit risk were assessed. In the next, fifth part, an analysis of the components of the income statement of cooperative banks was carried out by referring them to the relevant items of this statement for the entire banking system. The sixth part of the study is a set of synthetic conclusions from the conducted analyzes. The last part is a summary in which an attempt was made to determine the prospects for the development of the cooperative banking sector in Poland in the coming years based on the challenges for banks confronted with the specificity of the organization and principles of functioning of the cooperative sector.

SVJETSKI EKONOMSKI PREGLED I KOMPETITIVNOST ZEMALJA I REGIONA JUGOISTOČNE EVROPE 2009-2010

Author(s): Zlatko Lagumdžija / Language(s): Bosnian Publication Year: 0

Regionalni ekonomski forum Jugoistočne Evrope je treću godinu zaredom priredio svoju publikaciju „Izvještaj o kompetitivnosti zemalja i regiona Jugoistočne Evrope“ na bazi relevantnih istraživanja iz ove oblasti u protekloj godini.

KOMPETITIVNOST BOSNE I HERCEGOVINE I REGIONA JUGOISTOČNE EVROPE 2009-2010, PREZENTACIJA

Author(s): Zlatko Lagumdžija / Language(s): Bosnian Publication Year: 0