Problems of measuring country's financial security

Title: Problems of measuring country's financial security
Issue: Vol. 13, No 2, 2020
Published date: 06-2020 (print) / 06-2020 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Tetyana Vasylieva
Sumy State University

Oktawia Jurgilewicz
Rzeszow University of Technology

Sergii Poliakh
Cherkasy Educational and Scientific Institute of Banking University

Manuela Tvaronavičienė
The General Jonas Zemaitis Military Academy of Lithuania

Paweł Hydzik
Rzeszow University of Technology
Keywords: financial involvement, financial security, financial market, financial service, financial institute
DOI: 10.14254/2071-8330.2020/13-2/22
Language: English
Pages: 329-346 (18)
JEL classification: G00, G28, G30
The survey was supported by the Ministry of Education and Science of Ukraine and performed the results of the projects 0118U003569 and 0120U102001.

The aim is to define the key issues ensuring financial security of a country. The studies proposes a technique to calculate a country's quality management index for a financial as a weighted average of the country's overall compliance with key international standards, rules and principles in the sector. The study uses statistical information from the Consultative Group to Assist the Poor, the World Bank Database and the Organization for Economic Co-operation and Development, to study financial security of the population in 142 countries with different levels of economic development. 47 variables, grouped into 10 aggregates, were included in the study: Disclosure of information upon opening a deposit account, Disclosure of information upon opening a credit account, Disclosure of general information, Periodic disclosure upon opening deposit accounts, Periodic disclosure Monitoring, Enforcing, Fair treatment, Recourses, Standards for complaints resolution. Analysis of the results show that the levels of financial security in the studied countries have a wide variation from the minimum to the maximum values. We see that among the countries with high levels of economic development, the leaders are Italy, Canada and Puerto Rico. Transition economies include Venezuela, Argentina and Mexico; among developing countries, we can mention Armenia, Azerbaijan and Uzbekistan.


1. Alshubiri, F. N. (2019). Public finance indicators and the value of investment project development: a comparative study of GCC countries. Journal of Business Economics and Management, 20(6), 1143-1167. doi:

2. Aqil, M., Ahmed, R. R., Vveinhardt, J., & Streimikiene, D. (2019). Factors influencing the profitability of heavy vehicle industry: a case of Pakistan. Montenegrin Journal of Economics, 15(1), 61-72. doi:https://10.14254/1800-5845/2019.15-1.5.

3. Belas, J., Strnad, Z., Gavurova, B., & Cepel, M. (2019). Business environment quality factors research-SME managements platform. Polish journal of management studies, 20(1), 64-77. doi:https://10.17512/pjms.2019.20.1.06.

4. Bilan, Y., Brychko, M., Buriak, A., & Vasilyeva, T. (2019). Financial, business and trust cycles: the issues of synchronization. Zbornik Radova Ekonomski Fakultet u Rijeka, 37(1), 113-138. doi:

5. Bilan, Y., Lyeonov, S., Lyulyov, O., & Pimonenko, T. (2019b). Brand management and macroeconomic stability of the country. Polish Journal of Management Studies, 19 (2), 61-74. doi:https://10.17512/pjms.2019.19.2.05.

6. Bilan, Y., Lyeonov, S., Vasylieva, T., & Samusevych, Y. (2018). Does tax competition for capital define entrepreneurship trends in Eastern Europe? Online Journal Modelling the New Europe. 27(1), 34-66. doi:10.24193/OJMNE.2018.27.02.

7. Bilan, Y., Vasilyeva, T., Lyulyov, O., & Pimonenko, T. (2019c). EU Vector of Ukraine Development: Linking Between Macroeconomic Stability and Social Progress. International Journal of Business & Society, 20(2), 433 - 450. Retrieved from URL: http://www.ij

8. Bojarko, I. M., Deyneka, O. V., & Hrytsenko, L. L. (2012). Methodological approach to estimation of quality of state regulation influence on Ukrainian financial services market. Actual Problems of Economics, (7), 183-190.

9. Boyko, A., & Roienko, V. (2014). Risk assessment of using insurance companies in suspicious transactions. Economic Annals-XXI, (11-12), 73-76.

10. Brychko, M. (2013). Governance of stakeholder’s financial relationships: Evidence fom Ukrainian banking sector. Corporate Ownership and Control, 11(1), 706-714.

11. Brychko, M., & Olejarz, T. (2019). Trust cycle of the finance sector and its determinants: The case of Ukraine. Journal of International Studies, 12(4), 300 - 324. doi:10.14254/2071-8330.2019/12-4/20.

12. Buriak, A., Lyeonov, S., & Vasylieva, T. (2015). Systematically Important Domestic Banks: An Indicator-Based Measurement Approach for the Ukrainian Banking System. Prague Economic Papers, 2015(6), 715-728. doi:https://10.18267/j.pep.531.

13. Buriak, A., Vozňáková, I., Sułkowska, J., & Kryvych, Y. (2019). Social trust and institutional (Bank) trust: Empirical evidence of interaction. Economics & Sociology, 12(4), 116-332. doi:10.14254/2071-789X.2019/12-4/7.

14. Ch, A. R., & Semenog A.Y. (2017). Non-bank financial institutions activity in the context of economic growth: cross-country comparisons. Financial Markets, Institutions and Risks. 1(2), 39-49. doi:10.21272/fmir.1(2).39-49.2017.

15. Cortés-Sánchez, J. D., & Rivera, L. (2019). Mission statements and financial performance in Latin-American firms. Business: Theory and Practice, 20, 270-283. doi:

16. Council Directive 93/22 on Investment Services in the Securities Field, 1993 O.J. (L 141) 27, corr. at 1993 O.J. (L 170) 32 and (L 194) 27 [hereinafter Investment Services Directive]. Retrieved from URL:

17. Dave, H. (2017a). An Inquiry on Social Issues – Part 1. Business Ethics and Leadership, Volume 1, Issue 2, 78 – 87. doi:10.21272/bel.1(2).78-88.2017.

18. Dave, H. (2017b). An Inquiry on Social Issues − Part 2. Business Ethics and Leadership, Volume 1, Issue 3, 45 – 63. doi:10.21272/bel.1(3).45-63.2017.

19. Djalilov, K., Vasylieva, T., Lyeonov, S., & Lasukova, A. (2015). Corporate social responsibility and bank performance in transition countries. Corporate Ownership and Control, 13(1CONT8), 879-888. doi:10.22495/cocv13i1c8p7.

20. Gavurova, B., Tkacova, A., & Tucek, D. (2017). Determinants of Public Fund's Savings Formation via Public Procurement Process. Administration & Public Management Review, (28), 25 - 44. Retrieved from URL:

21. Grenčíková, A., Bilan, Y., Samusevych, Y., & Vysochyna, A. (2019). Drivers and inhibitors of entrepreneurship development in central and eastern European countries. In Proceedings of the 33rd International Business Information Management Association Confe

22. Grybaitė, V., & Stankevičienė, J. (2018). An empirical analysis of factors affecting sharing economy growth. Oeconomia Copernicana, 9(4), 635-654. doi:

23. Horsch, A., Sysoyeva, L., & Bogma, S. (2018). Deposit insurance systems of post-Soviet countries: A comparative analysis. Journal of International Studies, 11(4), 22-44. doi:10.14254/2071-8330.2018/11-4/2.

24. Horská, E., Moroz, S., Polakova, Z., Nagyová, Ľ., & Paska, I. (2019). Evaluation of interaction between chosen indicators of development of regions in Ukraine. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(2), 341-357. doi:https://do

25. Jurgilewicz, M., & Jurgilewicz, O. (2019). Management of Information Security and its Protection in Criminal Matters: Case of Poland. Journal of Security & Sustainability Issues, 8(3), 481 - 491. doi:

26. Khan, K., Qingyang, W., & Khurshid, A. (2017). Causal relationship between monetary policy and the stock market: a bootstrap rolling window approach. Financial Markets, Institutions and Risks. 1(4), 5-15. doi:10.21272/fmir.1(4).5-15.2017.

27. Khan, Y. (2018). The Effectiveness of Entrepreneurial Activities for Economic Development: A Route to Innovation and Job Generation. SocioEconomic Challenges. Volume 2, Issue 2, 32 – 40. doi:10.21272/sec.2(2).32-40.2018.

28. Kiseľáková, D., Šofranková, B., Onuferová, E., & Čabinová, V. (2019). The evaluation of competitive position of EU-28 economies with using global multi-criteria indices. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(3), 441-462. doi

29. Korcsmáros, E., & Šimova, M. (2018). Factors affecting the business environment of SMEs in Nitra region in Slovakia. Oeconomia Copernicana, 9(2), 309-331. doi:

30. Korcsmaros, E., Seben, Z., Machova, R., & Feher, L. (2019). Promotion of Euro Introduction in Slovakia: Financial Literacy of Generation X and Y. Marketing and management of innovations, 3, 11-21. doi:https://10.21272/mmi.2019.3-01/.

31. Kostel, M., Leus, D., Cebotarenco, A., Mokrushina, A. (2017). The Sustainable Development Goals for Eastern Partnership Countries: Impact of Institutions. SocioEconomic Challenges, 1(3), 79-90. doi:https://10.21272/sec.1(3).79-90.2017.

32. Kostyuchenko, N., Starinskyi, M., Tiutiunyk, I., & Kobushko, I. (2018). Methodical Approach to the Assessment of Risks Connected With the Legalization of the Proceeds of Crime. Montenegrin Journal of Economics, 14(4), 23-43. Montenegrin Journal of Economi

33. Kuzmenko, O., & Kyrkach, S. (2014). The use of regression analysis in the financial planning of banks, mathematical formalization of the stages of financial planning in banks. Mathematical Formalization of the Stages of Financial Planning in Banks (Decemb

34. Kwilinski, A., Tkachenko, V., & Kuzior, A. (2019). Transparent Cognitive Technologies to Ensure Sustainable Society Development. Journal of Security & Sustainability Issues, 9(2), 561 - 570. doi:

35. Leonov, S., Frolov, S., & Plastun, V. (2014). Potential of institutional investors and stock market development as an alternative to households’ savings allocation in banks. Еkonomichniy chasopys-ХХІ, (11-12), 65-68. Retrieved from URL:

36. Leonov, S., Yarovenko, H, Boiko, A.,. & Dotsenko, T. (2019). Information system for monitoring banking transactions related to money laundering. CEUR Workshop Proceedings, 2422, 297-307. Retrieved from URL:

37. Levchenko, V., Boyko, A., Bozhenko, V., & Mynenko, S. (2019). Money laundering risk in developing and transitive economies: analysis of cyclic component of time series. Business: Theory and Practice, 20, 492-508. doi:

38. Li, P., & Ouyang, Y. (2019). The dynamic impacts of financial development and human capital on CO2 emission intensity in China: an ARDL approach. Journal of Business Economics and Management, 20(5), 939-957. doi:

39. Lieonov, S. V., & Isaieva, O. V. (2014). Determinants of government bond spreads in Ukraine and new EU members. Actual problems of economics, 5(155), 416-425.

40. Logan, W., & Esmanov, O. (2017). Public financial services transparency. Business Ethics and Leadership, Vol. 1, Issue 2, 62-67. doi:10.21272/bel.1(2).62-67.2017.

41. Louis, R. (2017). A new economic order for global prosperity. SocioEconomic Challenges, (1, Iss. 2), 52-58. doi: 10.21272/sec.1(2).52-59.2017.

42. Lyeonov, S., & Liuta, O. (2016). Actual problems of finance teaching in Ukraine in the post-crisis period. In The Financial Crisis (pp. 145-152). Springer, Cham. doi:10.1007/978-3-319-20588-5_8.

43. Lyeonov, S., Bilan, Yu., Rubanov, P., & Grenčíková, A. (2019). Countries Financial Development and Digital Readiness as Determinants of Financial Sector Innovativeness [Paper presentation]. Paper presented at the Proceedings of the 34rd International Busi

44. Lyeonov, S., Кuzmenko, О., Yarovenko, H. & Dotsenko, T. (2019). The Innovative Approach to Increasing Cybersecurity of Transactions Through Counteraction to Money Laundering. Marketing and Management of Innovations, 3, 308-326. doi:

45. Makarenko, I. O., & Sirkovska, N. (2017). Transition to sustainability reporting: evidence from EU and Ukraine. Business Ethics and Leadership, Volume 1, Issue 1, 16 – 24. doi:10.21272/bel.2017.1-02.

46. Morscher, C., Horsch A., & Stephan J. (2017). Credit Information Sharing and Its Link to Financial Inclusion and Financial Intermediation. Financial Markets, Institutions and Risks 1(1), 22-33. doi:10.21272/fmir.1(3).22-33.2017.

47. Naghshpour, S. (2019). Determinants of economic growth rates of the newly formed countries of the former Soviet Union and Eastern Bloc. International Journal of Economic Policy in Emerging Economies, 12(5), 425-442. doi:10.1504/IJEPEE.2019.104638.

48. Natocheeva, N., Borodin, A., Rud, N., Kutsuri, G., Zholamanova, M., & Namitulina, A. (2019). Development of tools for realizing the potential of financial stability of enterprises. Entrepreneurship and Sustainability Issues, 7(2), 1654-1665. doi:https://d

49. Pansuwong, W. (2020). Business model and business model innovation: scholarly incongruence and implications to entrepreneurial firms. International Journal of Trade and Global Markets, 13(1), 31-41. doi:https://10.1504/IJTGM.2020.10021939.

50. Petrushenko, Y. M., Kostyuchenko, N. M., & Danko, Y. I. (2014). Conceptual Framework Of Local Development Financing In Undp Projects In Ukraine. Actual Problems in Economics, (159), 257.

51. Petrushenko, Y., Kozarezenko, L., Glinska-Newes, A., Tokarenko, M., & But, M. (2018). The opportunities of engaging FinTech companies into the system of cross-border money transfers in Ukraine. Investment Management & Financial Innovations, 15(4), 332 - 3

52. Pilipenko, A. I., Dikhtiar, V. I., & Baranova, N. M. (2019). 'Financial stability'safeguarding: modelling the Russian budgetary policy. International Journal of Economic Policy in Emerging Economies (IJEPEE), 12(1), 85-89. doi:10.1504/IJEPEE.2019.1001997

53. Piontek, B. (2019). The theoretical basis of strategic security management for shaping the structural order and sustainability processes. Polish Journal of Management Studies, 20, 344 – 358.

54. Pitoňáková, R. (2019). Modelling impact of economic and demographic factors on personal saving rate in the euro area. International Journal of Trade and Global Markets, 12(3-4), 333-344.

55. Plastun, A., Makarenko, I., Yelnikova, Y., & Sheliuk, А. (2018). Crisis and financial data properties: A persistence view. Journal of International Studies, 11(3), 284-294. doi:10.14254/2071-8330.2018/11-3/22.

56. Ramazanova, S., Kuchukova, N., Abdulova, G., Bulakbay, Z., & Zhumanova, D. (2019). Financial incentives for increasing efficiebcy of activity of agro-industrial complex. Entrepreneurship and Sustainability Issues, 7(2), 1525-1541. doi:

57. Remeikienė, R., Gasparėnienė, L., & Sadeckas, A. (2019). The determinants of the competitiveness of Lithuanian export: macroeconomic approach. Business: Theory and Practice, 20, 170-178. doi:

58. Sebestova, J., Majerova, I., & Szarowska, I. (2018). Indicators for assessing the financial condition and municipality management. Administratie si Management Public, (31), 97-110. doi:10.24818/amp/2018.31-07.

59. Shapovalova, I., Piiurenko, I., Husarina, N., Petrovska, S., & Kravchenko, M. (2019). Process Factors of System Security of Trading Enterprises. Journal of Security & Sustainability Issues, 9(1), 211 - 255. doi:

60. Shkodra, J. (2019). Financial performance of microfinance institutions in Kosovo. Journal of International Studies, 12(3), 31-37. doi:10.14254/2071-8330.2019/12-3/3.

61. Shkvarchuk, L., & Slav’yuk, R. (2019). The Financial Behavior of Households in Ukraine. Journal of Competitiveness, 11(3), 144 - 159. doi: .

62. Shvindina, H. (2019). Coopetition as an emerging trend in research: perspectives for safety & security. Safety, 5(3), 61. doi:

63. Simionescu, M., Popescu, J., & Caraba-Meita, N. L. (2019). The Impact of Some Economic and Monetary Variables on the Real Gdp in CEE-5 Countries. Transformations in Business & Economics, 18, 416 - 430.

64. Stefko, R., Jencova, S., Vasanicova, P., & Litavcova, E. (2019). An evaluation of financial health in the electrical engineering industry. Journal of Competitiveness, 11(4), 144 - 160. doi:

65. Straßberger, M., & Sysoyeva, L. (2016). Die aktuellen Entwicklungen der Bankenaufsicht im Lichte der Stabilität des Finanzsystems. Wirtschaftsdienst, 96(7), 486-491. doi:

66. Sukhonos, V., & Makarenko, I. (2017). Sustainability reporting in the light of corporate social responsibility development: economic and legal issues. Problems and Perspectives in Management, (15, Iss. 1 (cont.)), 166-174. doi:

67. Tsvetkova, L., Yurieva, T., Orlaniuk-Malitskaia, L., & Plakhova, T. (2019). Financial Intermediary and Insurance Companies-Assessing Financial Stability. Montenegrin Journal of Economics, 15(3), 189-204. doi:10.14254/1800-5845/2019.15-3.14.

68. Vasileva, T., & Lasukova, A. (2013). Empirical study on the correlation of corporate social responsibility with the banks efficiency and stability. Corporate ownership & Control, 10(4), 86 - 93. doi:

69. Vasilyeva, T., Bilan, S., Bagmet, K., & Seliga, R. (2020). Institutional development gap in the social sector: Cross-country analysis. Economics & Sociology, 13(1), 271 - 294. doi:10.14254/2071-789X.2020/13-1/17.

70. Vasilyeva, T., Kuzmenko, O., Bozhenko, V., & Kolotilina, O. (2019). Assessing the dynamics of bifurcation transformations in the economy. In SHS Web of Conferences (Vol. 65, p. 04006). EDP Sciences. doi:10.1051/shsconf/20196504006.

71. Vasilyeva, T., Sysoyeva, L., & Vysochyna, A. (2016). Formalization of factors that are affecting stability of Ukraine banking system. Risk governance & control: financial markets & institutions, 6(4), 7-11. doi:https://10.22495/rcgv6i4art1.

72. Vasylyeva, Т. А., Leonov, S. V., & Lunyakov, О. V. (2014). Countercyclical capital buffer as a macroprudential tool for regulation of the financial sector. Actual Problems in Economics, (8), 278-283.

73. World Bank (2009), Good Practices for Financial Consumer Protection and Financial Literacy in Europe and Central Asia : A Diagnostic Tool. Washington DC: Private and Financial Sector Development Department Europe and Central Asia Region. The World Bank. R

74. WorldBank (2011). Good Practices for Financial Consumer Protection, Washington DC: International Bank for Reconstruction and Development. The World Bank. Retrieved from URL:

75. Yakubu, Z., Loganathan, N., Hassan, A. A. G., Mardani, A., & Streimikiene, D. (2019). Financial and economic determinants of sustainable economic growth in Egypt, Nigeria and South Africa. Journal of International Studies, 12(4), 160-176. doi:10.14254/207

76. Yakymova, L., & Kuz, V. (2019). The use of discriminant analysis in the assessment of municipal company's financial health. Economics & Sociology, 12(2), 64-78. doi: 10.14254/2071-789X.2019/12-2/4.

77. Yelnikova, Y. (2014). Evaluation of the efficiency of state regulation on the derivatives market. Investment Management and Financial. 11(4), 85-91..

78. Yossifov, P., Das, U., & Sundararajan, V. (2003). Cross-Country and Cross-Sector Analysis of Transparency of Monetary and Financial Policies. IMF Working Papers, 1-44. Retrieved from URL: