ESSENTIAL UNDERSTANDING OF THE CONCEPT "BANKING SYSTEM" IN THE CONTEXT OF SYSTEM ANALYSIS AND SECTORAL DIVISION OF THE ECONOMY

doi:10.26565/2524-2547-2023-66-07

Nataliia Pohorelenko V.N. Karazin Kharkiv National University, 4, Svobody Sq., Kharkiv, 61022, Ukraine https://orcid.org/0000-0001-9815-9818
Olha Hlushchenko V.N. Karazin Kharkiv National University, 4, Svobody Sq., Kharkiv, 61022, Ukraine https://orcid.org/0000-0001-5856-3373

DOI: https://doi.org/10.26565/2524-2547-2023-66-07

Keywords: Banking System, Banking Sector, System Analysis, Sectoral Division, Financial Stability, Managerial Influences

Abstract

The article is devoted to justifying the need to increase the effectiveness of regulations to ensure the financial stability of the banking system by conducting a theoretical analysis of the concepts "banking system" and "banking sector". This presupposes, first of all, a balanced consideration of the applied terminology, since the proper theoretical background allows not only to define, but also to describe in detail the scope and directions of the conducted research, to specify its main goal and main tasks.

The importance of this research is related to the fact that it is banking activity that significantly affects other components of the economic system, because it determines the coordination of a significant share of the movement of financial flows between business entities. The reason: in one way or another, researchers have to note the ramifications and volumes of such activities taking into account a single bank or some combination of them, where in particular such concepts as "banking system" and "banking sector" are used.

It was found that at the level of such features as the list of institutional elements of the studied groups and taking into account the systemic approach to the combination of individual elements, there are no significant differences between the studied definitions. This allows us to talk about the identity of their content.

At the same time, disagreements in the theoretical understanding of the essential content of these concepts according to the criterion of the structural organization of the banking sector and the banking system, their subordination to higher systems regarding the establishment of economic interaction between various economic entities and, accordingly, to the varieties and types of management influences formed - confirm the problem issues related to consideration of banking activity from the point of view of a number of banks or sectoral consideration of certain types of economic activity in general. In particular, the subordination of elements is not clearly defined; the banking system is characterized by an institutional and systemic structure with multiple structural units and connections between them.

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Author Biographies

Nataliia Pohorelenko, V.N. Karazin Kharkiv National University, 4, Svobody Sq., Kharkiv, 61022, Ukraine

D.Sc. (Economics), Professor

Olha Hlushchenko, V.N. Karazin Kharkiv National University, 4, Svobody Sq., Kharkiv, 61022, Ukraine

D.Sc. (Economics), Associate Professor

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