Savchenko O. Risks in the Banking System of the Member Countries of the European Union: Methods of Identification and Evaluation.

The dissertation "Risks in the Banking System of the Member Countries of the European Union: Methods of Identification and Evaluation" examines the systematic and non-systematic risk in the banking system of the European Union as well as models of evaluation and methods of reducing these risks. The author introduces his view on the nature of the systematic risk in the economy in general and in the banking industry in particular. Unlike previous definitions of the systematic risk, the bias is placed on the probability character of the systematic risk as opposed to the more common definition of the systematic risk through its consequences. The author recapitulates the existing approaches to the systematic events in the banking sector and introduces his own classification of the systematic events and their characteristic features. Grade of importance of the systematic event (E) and individual factor of resistance of banking system of a country to the systematic risk (l), introduced by the author, enable the researchers to predict the critical level of individual bank bankruptcies for the overall stability of the banking system. The flexible formulae allow for taking into account the specific features of each banking system, making the proposed ratios valuable stability pegs for every banking system of the world, not only that of the European Union. The author proofs that considerable interrelationship exists between the level of the systematic risk in the banking sector and non-systematic risk of a single banking institution.