Analysis of Global Risks and Factors of Financial Stability: Models of Financial Stability in the Entrepreneurship of Banking Sector from Slovakia
Analysis of Global Risks and Factors of Financial Stability: Models of Financial Stability in the Entrepreneurship of Banking Sector from Slovakia

Author(s): Dana Kiseľáková
Subject(s): Economy, National Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: global risks; risk indexes; credit risk management; bank’s profitability; and regression models
Summary/Abstract: The objective of this chapter is to analyze global risks with focus on credit risk management in the entrepreneurship of the banking sector and identify selected factors of financial stability of banking sector from aspect of profitability in the economy of Slovakia, using regression modelling. The method of empirical sector analysis, regression and correlation analysis and risk indexes are used in this chapter. The relationships between the dependence of the banking sector and macroeconomic development from aspect of stability have been surveyed spanning a period of nine years (2004-2012) or twelve years (2001-2012) through construction of regression models. Regression models accurately reflect the real development in Slovakia. Factors of credit quality and decreasing of credit risk show common features for the banking sectors in other countries of the EU in context of global crisis and proceeding impacts of global crisis based on existence of common relationships and dependences. These models can be applied in other countries of the EU and present implications for economic decisions-making in the field of financial stability and prevention of risks.

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