RELATIONSHIP BETWEEN ASYMMETRY AND TRANSPARENCY OF INFORMATION IN BANKING
UDC 336.71
BUSKO Kateryna,
Postgraduate Student at the Banking Department
Kyiv National University of Trade and Economics
RELATIONSHIP BETWEEN ASYMMETRY AND TRANSPARENCY OF INFORMATION IN BANKING
Background. The proposed scientific article is devoted to the urgent issue of developing the model of the relationship between asymmetry and transparency of information in the context of achieving the maximum banks’ and clients’ activities transparency level in the process of establishing and maintaining contractual relationships between them. Study of this question is based on the analysis of fundamental research concerning the nature of the informational "asymmetry" and "transparency" concepts and their adaptation to the specifics of the banking services market functioning.
Analysis of the recent researches and publications in this area indicates that among scientists takes place an ongoing debate regarding approaches to determining the nature and influence of informational asymmetry on financial and economic relations. Also a large number of studies devoted to the determination of the essence, principles, predication of the necessity and the relation between transparency and market discipline of banks. Thus in the writings of both domestic and foreign scientists such questions as peculiarities of informational asymmetry manifestation on the banking services market and its relationship with the banks’ and clients’ activities transparency level in general and their risks in particular remained quite unsolved.
The aim of the article is to determine the nature of asymmetry and information transparency and to develop a model of their relation on the banking services market.
Materials and methods. The following general and scientific methods were used in the article: analysis and synthesis, scientific abstraction, formalization, modeling. Scientific studies of foreign and domestic authors dedicated to the topic, regulatory and legislation acts in this sphere were also used in the article.
Results. It is impossible to achieve full transparency of the banks’ and clients’ activities due to objective reasons, namely the existence of informational asymmetry, which is a natural phenomenon that in varying degrees is inherent in the banking services market. The prerequisite for maintenance of the sustainability and reliability of the banking system is finding an optimal balance between the amount of information that banks and clients have to disclose to each other in the process of establishing and maintaining contractual relationships between them and the asymmetry of information that is the inherent characteristic of the banking services market.
Conclusion. So by the way, based on the characteristics of transparent information such as completeness, accuracy, availability, sufficiency, understandability, timeliness, increasing of the banks’/clients’ activities transparency is the source of reducing information asymmetry and leads to a partial restoration of the informational balance on the market.
Keywords: transparency, information asymmetry, market of banking services, bank, customer, subject of the market.
FREE FULL TEXT (PDF)
BUSKO Kateryna,
Postgraduate Student at the Banking Department
Kyiv National University of Trade and Economics
RELATIONSHIP BETWEEN ASYMMETRY AND TRANSPARENCY OF INFORMATION IN BANKING
Background. The proposed scientific article is devoted to the urgent issue of developing the model of the relationship between asymmetry and transparency of information in the context of achieving the maximum banks’ and clients’ activities transparency level in the process of establishing and maintaining contractual relationships between them. Study of this question is based on the analysis of fundamental research concerning the nature of the informational "asymmetry" and "transparency" concepts and their adaptation to the specifics of the banking services market functioning.
Analysis of the recent researches and publications in this area indicates that among scientists takes place an ongoing debate regarding approaches to determining the nature and influence of informational asymmetry on financial and economic relations. Also a large number of studies devoted to the determination of the essence, principles, predication of the necessity and the relation between transparency and market discipline of banks. Thus in the writings of both domestic and foreign scientists such questions as peculiarities of informational asymmetry manifestation on the banking services market and its relationship with the banks’ and clients’ activities transparency level in general and their risks in particular remained quite unsolved.
The aim of the article is to determine the nature of asymmetry and information transparency and to develop a model of their relation on the banking services market.
Materials and methods. The following general and scientific methods were used in the article: analysis and synthesis, scientific abstraction, formalization, modeling. Scientific studies of foreign and domestic authors dedicated to the topic, regulatory and legislation acts in this sphere were also used in the article.
Results. It is impossible to achieve full transparency of the banks’ and clients’ activities due to objective reasons, namely the existence of informational asymmetry, which is a natural phenomenon that in varying degrees is inherent in the banking services market. The prerequisite for maintenance of the sustainability and reliability of the banking system is finding an optimal balance between the amount of information that banks and clients have to disclose to each other in the process of establishing and maintaining contractual relationships between them and the asymmetry of information that is the inherent characteristic of the banking services market.
Conclusion. So by the way, based on the characteristics of transparent information such as completeness, accuracy, availability, sufficiency, understandability, timeliness, increasing of the banks’/clients’ activities transparency is the source of reducing information asymmetry and leads to a partial restoration of the informational balance on the market.
Keywords: transparency, information asymmetry, market of banking services, bank, customer, subject of the market.
FREE FULL TEXT (PDF)