Assessing Bank Financial Security Level Using the Comprehensive Index Technology

DOI

10.2991/smtesm-19.2019.81How to use a DOI?

Keywords

Bank financial security, financial security level, principal component method, cluster analysis, partial composite index, comprehensive index of financial security

Abstract

The paper is devoted to issues of assessment of the bank financial security level. The analysis of existing approaches to the solution of this problem has been carried out. The scientific-methodological approach based on the use of comprehensive index technology is proposed. The calculating algorithm is presented in the form of a four-step procedure, which contains the definition of the initial set of data, their normalization, the calculation of the comprehensive index of financial security and results interpretation. The identification of financial security levels and the boundaries of the corresponding comprehensive index is carried out on the basis of analysis of the objects’ configuration in the two-scale space of partial composite indexes. It constructed by the division of the set of initial indicators using the its content characteristics. The grouping results are matched with similar results are obtained by cluster analysis and the method of the principal components. The article presents the practical implementation of the proposed calculation procedure. For this purpose, a training sample of banks and a set of initial indicators was formed. The obtained results allowed to determine the number of levels of financial security and their boundaries. The financial security levels established for the analyzed banks as a result of the calculations are conditional and determined by the sample.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nila Khrushch
AU  - Pavlo Hryhoruk
AU  - Liudmyla Prystupa
AU  - Liudmyla Vahanova
PY  - 2019/09
DA  - 2019/09
TI  - Assessing Bank Financial Security Level Using  the Comprehensive Index Technology
BT  - Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)
PB  - Atlantis Press
SP  - 414
EP  - 419
SN  - 2352-5428
UR  - https://doi.org/10.2991/smtesm-19.2019.81
DO  - 10.2991/smtesm-19.2019.81
ID  - Khrushch2019/09
ER  -