A discriminant analysis of financial soundness of deposit takers: Ukraine versus Israel case

Abstract

Discriminant models for determining the financial soundness for Ukraine and Israel are discussed. These models determine the level of a financial soundness of deposit takers. In this paper The discriminant model based on twenty-four financial soundness indicators for deposit takers over the period from 2008 till 2018 is developed. Though Ukraine and Israel are unitary states, Ukraine, being an industrial and agricultural country with a predominant production of raw materials, is a dynamic industrializing country, while Israel is an industrial country that is dynamically developing, that is why, they are comparable. According to Doing Business-2018, Israel ranked the 54th in the annual rating ease of doing business, while Ukraine did the 76th. Ukraine also ranked the 77th in the ranking of Best Countries for Business (Forbes), and Israel ranked the 74th. Ukraine’s GDP was 112.2 billion USD in 2017, and Israel’s GDP was 350.9 billion USD. This fact reflects national development, progress and living standards of both states, as well as differences between them. The period from 2008 to 2018 was chosen for analysis, because it covers crisis and postcrisis periods of the world economy.