The Zombie Phenomenon in Banking and Business: a Comparative Analysis and the Origin of the Institutional Problem

• Authors: Ihor Hurnyak , Aleksandra Kordonska

Title variants

Zjawisko zombie w bankowości i biznesie – analiza porównawcza oraz instytucjonalne podłoże problemu

• Languages of publication: EN

Abstracts

EN

The research presents an investigation of the zombie phenomenon in banking and business. The main goals are as follows: to reveal the consequences of the threatening dynamics of nonperforming loans for the states of Central and Eastern Europe, Western Europe, the group of former USSR states, and Latin America; to demonstrate the zombie business phenomenon in the case of Ukraine and disclose a new form of zombie business on the basis of different tools with exception of banking loans. The authors believe the solution to the zombie banks problem will not be found in the growth of government influence or control but in the restructuring of the banking system based on a decentralized but strongly controlled bottom‑up model. The ineffectiveness of the institutional system also generates various forms of zombie business. The case of Ukraine is the best illustration of applying the tools, that are used in zombie business, with the exception of banking loans. The article helps to understand the influence of nonperforming loans on the economy and the perspectives for banking system formation in the light of the institutional aspect and interinstitutional interactions with the active participation of NPLs.

PL

W artykule przedstawiono zjawisko zombie w bankowości i biznesie. Główne cele publikacji to: wyjaśnienie negatywnych konsekwencji w przypadku niespłacalnych pożyczek dla państw Europy Środkowo‑Wschodniej, Europy Zachodniej, Ameryki Łacińskiej oraz grupy byłych państw ZSRR oraz przedstawienie zjawiska firm zombie w przypadku Ukrainy, w tym ujawnienie nowej formy zombie biznesu na podstawie narzędzi pozabankowych. Autorzy twierdzą, że rozwiązaniem problemu zombie banków nie jest kontrola państwa, lecz restrukturyzacja systemu bankowego oparta na zdecentralizowanym i silnie kontrolowanym modelu oddolnym. Poza tym nieefektywność systemu instytucjonalnego generuje różne formy zombie biznesu. Przypadek Ukrainy jest doskonałą ilustracją narzędzi pozabankowych stosowanych w zombie biznesie. Artykuł podkreśla wpływ nierentownych kredytów na gospodarkę oraz perspektywy tworzenia systemu bankowego w świetle instytucjonalnym i interakcji międzyinstytucjonalnych przy aktywnym udziale niespłacalnych kredytów.

Keywords

EN

bank system; banking; zombie banks; zombie business; nonperforming loans; institutional theory

PL

system bankowy; bankowość; banki zombie; zombie biznes; niespłacalne pożyczki; teoria instytucjonalna; system bankowy; bankowość; banki zombie; zombie biznes; niespłacalne pożyczki; teoria instytucjonalna

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Comparative Economic Research. Central and Eastern Europe
• Year: 2019
• Volume: 22
• Issue: 4
• Pages: 111-127

Dates

published

2019-12-30

Contributors

author

Ihor Hurnyak

• Ph.D., Ivan Franko National University of Lviv, Faculty of International Relations Lviv, Ukraine

author

Aleksandra Kordonska

• Ph.D., University of Warmia and Mazury in Olsztyn, Institute of Political Science, Olsztyn, Poland

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Identifiers

DOI

10.2478/cer-2019-0035