Financial Security of Commercial Banks in Modern Conditionsof Development of Global Economy

Abstract

The objective of the presented study is to assess the impact of additional taxation on the financial security of commercial banks. The authors shall formulate suggestions on a stable development of a banking industry, on the basis of the conducted analysis of the development of the banking system in European countries. Hypothesis – Imposing supplemental taxes on commercial banks shall not stimulate lending, but shall reduce banking financial security in a crisis situation in the economy. Study methods - When studying the development of the economic situation in 2007-2010, a method of historical reflection and an observation method have been applied. When comparing options for the supplemental taxation of the commercial banks, by countries, a comparison method has been used. As a result of the conducted study, the authors of the work shall conclude that the introduction of the supplemental taxation on the banking sector shall be unacceptable, and most importantly – dangerous for the global economy. As a result of the conducted research, the authors of the article come to the conclusion that the “illusory” profits received by banks due to high interest rates may soon turn into significant losses in the financial sector. Shareholders of many banks will not be able to cope with these problems. The withdrawal of money from the bank profits shall not activate lending by the banks. At the same time, the high bank profits in 2022-2023 shall allow many financial institutions to overcome an arrival of a new wave of economic crisis which shall highly likely occur in 2024-2025.