MEASURING OF BANKING SYSTEM RESILIENCE BY USING THE TEXAS RATIO
Keywords:
resilience, banking sector, non-performing loans, Texas ratio, Republic of Serbia.
Abstract
The issue of banking sector resilience is one of the most exploited after global financial crisis. Competent authorities and central banks worldwide conducted series of actions to strengthen their systems and made it more resilient on extraordinary events. For that purpose, there were conducted stress tests leading to results for improvement of central bank’s supervisory activities and practices. Also, the analysis of banking sector resilience should be complemented with other measures, which are also treated as early warning indicators. Texas ratio is one of the early warning indicators that could indicate the banking system stability through the analysis of non-performing loans as portion of “toxic” assets in banks. High level of non-performing loans represents a huge threat for survival of banking systems, so their monitoring and efficient resolution is imperative. In paper, authors emphasize the significance of Texas ratio usage in the process of banking sector resilience evaluation.
References
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Deposit Insurance Agency (n.d.). Banke. Retrieved September 04, 2023, from: https://aod.rs/clan/osigdepoz/banke
Djukić, P. (2012). Agonija i šanse za oporavak realnog sektora: Ekonomska politika Srbije u drugom talasu krize. U: Privreda Srbije u drugom talasu krize – izgledi za 2012 (Đukić, P. & Đukić, Đ., Eds.), Beograd: Naučno Društvo ekonomista Srbije sa Akademijom ekonomskih nauka i Ekonomski fakultet u Beogradu, 53-77.
Djukić, Dj. (2013) Preventive impact of deposit insurance premium differentiation on moral hazard in banking sector. In: Proceedings of the Scientific Conference - Post Crisis Recovery: 164-187. Belgrade: Belgrade banking Academy.
European Banking Authority (2014). EBA Final draft Implementing Technical Standards on Supervisory reporting on forbearance and non-performing exposures. Retrieved September 04, 2023, from: https://www.eba.europa.eu/documents/10180/449824/EBA-ITS-2013-03+Final+draft+ITS+on+Forbearance+and+Non-performing+exposures.pdf
IMF (2005). The treatment of Non-performing Loans. IMF: Statistics Department.
Knežević M.,& Mirković, V. (2015). Elements of moral hazard in bailout scheme of Serbian banks. In International Scientific Conference - Challenges in business and economics: growth, competitiveness and innovations, Faculty of Economics, University of Niš, 16 October 2015, UDK: 347.734 (497.11), 81-92.
Mirković, V., & Knežević, M. (2013a). Porast problematičnih kredita kao prepreka održivom razvoju bankarskog sistema. U: XVIII Internacionalni naučni skup SM 2013, Subotica: Ekonomski fakultet u Subotici, UDK: 005.334:336.77, COBISS.SR-ID: 197749772, 404-413.
Mirković, V., & Knežević, M. (2013b). Regulatorni izazovi bankarskog sektora u
procesu harmonizacije sa Evropskom Unijom. U zborniku sa naučne konferencije: Institucionalne reforme, ekonomski razvoj i proces pridruživanja Evropskoj Uniji (redaktori: Praščević Aleksandra i Bjelić Predrag), Naučno društvo ekonomista Srbije sa Akademijom ekonomskih nauka i Ekonomski fakultet u Beogradu, ISBN: 978-86-403-1315-5, COBISS.SR-ID: 199741196, 185-198.
Mirković, V. (2013c). Serbian economy from the prism of relations between real and financial sector. In 3rd International Conference “Economics and Management – based on new technologies”- EMONT 2013, SaTCIP, Vrnjačka Banja, June 13-16, 2013, ISBN 978-86-6075-039-8, 305-314.
Mirković, V., & Knežević, M. (2014a). Rešavanje problema nenaplativih potraživanja kao esencijalni faktor stabilnosti bankarskog sistema. FBIM Transactions, 2(2), 224-234., doi:10.12709/fbim.02.02.02.22
Mirković, V., & Knežević, M. (2014b). Sustainable development in the banking sector from the perspective of non-performing loans. In: Proceedings of International Scientific Conference Financial Markets and the Real Economy: some reflections on recent financial crisis (Marinković S. & Krstić B., Eds.), Niš: The Faculty of Economics, 133-150.
Mirković, V. (2015). Formiranje banke za preuzimanje nenaplativih potraživanja: iskustva drugih zemalja i pouke za Srbiju. Anali Ekonomskog fakulteta u Subotici, Vol. 51, 34/2015, ISSN: 0350-2120, UDK 330, 391-404.
Mirković V., & Vujičić M. (2018). Empirical Evidence on Npls Resolution: Serbia and Cesee Countries. In: FINIZ 2018 - The Role of Financial and Non-Financial Reporting in Responsible Business Operation, Singidunum University, Belgrade, Serbia, 2018, doi: 10.15308/finiz-2018-49-55, 49-55.
Mirković, V. & Andonović Brmalj, D. (2020). Uticaj pandemije koronavirusa na stabilnost finansijskog sistema Republike Srbije. Ekonomski vidici, XXVI, 1-2, 169-187.
National bank of Serbia (2017, August 10). Decision on the accounting write-off of bank balance sheet assets. Retrieved September 04, 2023, from: https://www.nbs.rs/export/sites/NBS_site/documents/propisi/propisi-kpb/otpis_bilansne_aktive.pdf
National bank of Serbia (2020). Banking sector in Serbia – Fourth quarter report 2019. Retrieved September 04, 2023, from: https://www.nbs.rs/export/sites/NBS_site/documents/kontrola-banaka/kvartalni_izvestaj_IV_19.pdf
National bank of Serbia (n.d.). Key macroprudential Indicators. Retrieved September 04, 2023, from: https://www.nbs.rs/en/drugi-nivo-navigacije/statistika/
National bank of Serbia (2023). Annual Financial Stability Report. Retrieved January 02, 2024, from: https://www.nbs.rs/en/drugi-nivo-navigacije/publikacije-i-istrazivanja/GISFS/index.html
Pravno-informacioni sistem Republike Srbije (2015, August 19). Strategy for NPL resolution. Retrieved September 04, 2023, from: https://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2015/72/1
Property Metrics (2023, July 10). The Texas Ratio: A Key Indicator of Bank Stability. Retrieved September 04, 2023, from: https://propertymetrics.com/blog/texas-ratio/
Vienna Initiative (2023). NPL Monitor for CESEE region – H2 2022. Retrieved September 04, 2023, from: https://npl.vienna-initiative.com/assets/Uploads/2022/NPL-Monitor-H2-2022-fv.pdf
Published
2024/04/19
Section
Original Scientific Paper
