scholarly journals Adjustment of prudential norms, determining vector of the banking sector development

Upravlenie ◽  
2020 ◽  
Vol 7 (4) ◽  
pp. 32-43
Author(s):  
N. V. Gryzunova
Keyword(s):  
Internal Control ◽  
Business Models ◽  
Banking Sector ◽  
Banking System ◽  
System Reform ◽  
Banking Supervision ◽  
Interest Rate Policy ◽  
Credit Line ◽  
Russian Economy ◽  
Credit Institutions

Currently, the Bank of Russia carries out radical reforms in the administration system of banking supervision and regulation. You can observe the interaction between monetary policy and macro prudential policy. The purpose of the traditional regulator is protection of investors', shareholders', customers' capital. The main problem of the Russian economy is the shortage of investment and working capital from non-credit institutions and the difficulty to get a foothold lending. The main objective of the banking system reform is to create additional sources of investment for non-credit institutions. The tightening Supervisory requirements although eliminate the total bank risks, but reduce business activity and agility of the banking system. The curve of investment demand in the Russian economy is flat, that characterizes the low profitability of investments and the weak dependence on interest-rate policy. In this connection, it has been suggested to consider investment companies as the main criterion of competitiveness and the main argument in decision-making about granting a credit line.The feasibility of the allocation of investment criteria in the monetary rule has been shown in the article. The urgency proportional distribution of regulatory indicators of banking supervision by tier banking system, which are formed from the pacing of functional and regional specificity, – has been substantiated. The mechanism of price stability based on the clustering of financial institutions has been offered. It has been suggested to use the investment criteria as justification for a transfer service of non-bank organization to another bank cluster. Possible trends and implications of key planned reforms of the banking system including the bank's tier and the distribution tier of powers and functions have been analysed.Due to measures of preventive supervision and bank clustering, it is possible to expect regional market segmentation, improving the effectiveness of internal control systems, based on the distribution of the control functions in bank tiers, simplify management and risk reduction in accordance with the profile of the company and the level of the bank's operations. It has been proved in the paper that a focused segmentation of the credit market allows us to reduce the credit risks for banks, as well as to link market characteristics with the business models of each cluster.

scholarly journals Russia’s banking sector during the pandemic

2022 ◽  
pp. 157-163
Author(s):  
E. N. Gavrilova
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Graphical Methods ◽  
Real Economy ◽  
Good Test ◽  
Russian Economy ◽  
Monetary Authorities ◽  
The Impact

Quarantine and self-isolation have become a new challenge for the Russian economy, changed many areas of our life, revealed new weaknesses in the banking system and monetary regulation of the economy, and also become a good test for the post-crisis financial system. In this article using a systematic approach to the study of information, analytical and graphical methods the dynamics of the Russian banking sector during the development of the coronavirus pandemic and the specifics of recovery from the crisis have been investigated. The innovations and improvements brought about by the pandemic have been studied. The Central Bank of Russia’s monetary policy instruments used to mitigate the impact of the pandemic on the real economy in general and on the banking sector in particular have been reviewed. The features of anti-crisis measures taken by the monetary authorities in our country have been revealed. 

scholarly journals Analyzing Impact of Computer Attacks on the Banking System of the Russian Federation

2019 ◽  
pp. 202-210
Author(s):  
A. A. Salcutan
Keyword(s):  
Russian Federation ◽  
Banking Sector ◽  
International System ◽  
Banking System ◽  
Russian Economy ◽  
Computer Attacks ◽  
The Russian Federation ◽  
The Impact ◽  
Swift System

The article analyzes damage caused by attacking finance organizations in the Russian Federation through activization of hacker groups. The mentioned attacks were mainly directed at banking cards’ processing, cash machines and the SWIFT system, an international system of transmitting finance information and payments. The growth in hacker penetrations can be seen in all sectors of Russian economy, it is based on informational confrontation and aims at destabilization of considerable objects of critical information infrastructure. Today special attention is paid to attacks of hacker groups, which get financing from states and criminal groupings in order to exert influence on the leading banks of the world. The author investigated the key methods of attacks of finance organizations. The role of the Federal service on technical and export control and the Department of information security of the Bank of Russia was described. By assessing the impact of computer attacks the author came to the conclusion that the Russian banking sector is vulnerable to computer attacks on informational systems that could cause damage not only to small but also big credit organizations, which possess over 60% of the Russian banking sector assets.  

Banking regulation and supervision: lessons from the czech republic

1998 ◽  
Vol 7 (1) ◽  
Author(s):  
Roman Matoušek
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Present Situation ◽  
Banking Regulation ◽  
Banking Supervision ◽  
The Czech Republic ◽  
Regulation And Supervision ◽  
Banking Regulation And Supervision ◽  
Remarkable Progress ◽  
Made In

We have concentrated on the current issues linked to the goals of banking regulation and supervision. Attention has been focused mainly on the problem of entry into and exit form the banking sector and the institutional framework banking supervision as a whole. Although we are aware that the present situation in emerging markets is far from that of standard economies, we argue that remarkable progress has been made in creating an appropriate banking system since the beginning of the 1996.

scholarly journals Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework

2019 ◽  
Vol 14 (4) ◽  
pp. 22-33
Author(s):  
Lyubov Khudoliy ◽  
Oleg Bronin
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Basel Iii ◽  
Banking Supervision ◽  
Macroeconomic Shocks ◽  
Bank Supervision ◽  
Banking Institutions ◽  
The Global Financial Crisis

This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.

scholarly journals The Bahamas

2019 ◽  
Vol 19 (199) ◽  
pp. 1
Author(s):  
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Supervision ◽  
Property Market ◽  
The Bahamas ◽  
Poor Growth ◽  
Nonperforming Loans ◽  
Consumer Loans ◽  
Risk Monitoring

The Bahamas appears to be resilient to current threats to its financial stability, but action is needed to safeguard against potential weaknesses. There is a large stock of problem assets that needs to be dealt with from a variety of perspectives: systemic risk monitoring, banking supervision, and crisis management. Vulnerabilities to natural disasters and external economic contagion heighten this need. The banking sector dominates the financial system and has focused on residential mortgages and consumer loans during a long period of economic stagnation. Despite poor growth the sector has remained profitable. However, the small domestic residential property market backing most secured lending is prone to shocks and illiquidity. This has historically led to high and persistent levels of nonperforming loans (NPLs), which significantly increase uncertainty and fragility in the banking system.

scholarly journals BANKS OF THE CASPIAN REGION COUNTRIES IN THE BANKING SYSTEM OF RUSSIA: CURRENT TRENDS AND DEVELOPMENT PROBLEMS

2019 ◽  
Vol 8 (3) ◽  
pp. 7-28
Author(s):  
Olga Viktorovna Bogacheva ◽  
Oleg Alekseevich Lepekhin
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Operating Efficiency ◽  
Caspian Region ◽  
Banking Systems ◽  
Internalization Process ◽  
Business Entities ◽  
Credit Institutions

The mutual penetration of capital from one country into another has become a characteristic feature of the world financial system. This is largely due to the current globalization processes in the global economy, the continuous development of banking technologies, the need to maintain foreign economic activity of business entities and the rationale for expanding the scales of business activity as a tool to increase operating efficiency. The purpose of the article is to study the current internalization process in the banking systems of the Caspian region countries in terms of the penetration of the banks from the Caspian region countries into the Russian banking sector. Methodology. We have identified the sample of the Russian credit institutions fully controlled by the shareholders from the Caspian region states. Using the data, presented in turnover balance reports (Form 101), we have calculated key performance indicators in 2015–2018. We used the Bank of Russia’s practice to estimate the aggregate balance sheet of the 30 largest credit institutions as the basis for our algorithm. We have analyzed tendencies in funding base, structure of assets and operating efficiency. Results. The analysis of the financial statements shows that within the chosen business model, the banks of the sample are more likely to focus on international financial settlements, servicing foreign trade transactions, than on traditional types of banking business such as lending to non-financial enterprises and individuals. Their performance is significantly lower than the industry benchmarks, which so far does not allow us to expect an increase in their scale of presence in the Russian market in the near future. Practical implications. The analysis of current processes in the field of internationalization of banking systems can be used to assess the financial and economic integration of the countries of the Caspian countries and to develop corrective measures aimed at its further development and deepening.

scholarly journals Investment policy of the banking sector: data from Russia

2021 ◽  
Vol 10 (42) ◽  
pp. 149-162
Author(s):  
Alexei Zverev ◽  
Victoria Mandron ◽  
Tatiana Rebrina ◽  
Maria Mishina ◽  
Yulia Karavaeva
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Investment Policy ◽  
Investment Portfolio ◽  
Investment Activity ◽  
Composition And Structure ◽  
High Volatility ◽  
Investment Portfolios ◽  
Credit Institutions

The growing investment activity of banking sector organisations is an important condition for securing diversification of assets and obtaining additional sources of income, as well as maintaining the required level of liquidity. Economic crises and instability of stock markets affect the investment policy of a bank, the quality of its investment portfolio, and the scope of investment transactions with securities. The purpose of the research is to carry out a comprehensive analysis of the investment mechanism of the Russian banking sector and its organisation, to characterise the investment policy and risks connected with investment activities, to determine the criteria for financial instruments included in the structure of investment portfolios of Russian credit institutions. The authors used the analytical, regulatory, comparative, and statistical methods of research to define the dynamics, composition, and structure of investment portfolios and risks involved in the business of financial and credit institutions, in the course of the formation of investment policy. It was concluded, as a result of the research, that enhanced performance, stability, and liquidity of credit institutions were conditioned by the structure and quality of portfolio investments. Improving the efficiency of the banking investment mechanism is a priority area of development, for strengthening the competitive positions of credit institutions in the national banking system. The article presents conclusions regarding the quality of investment operations and transactions with securities effectuated by banks at the present stage. The authors undertook a comparative analysis of indicators characterising the structure of investment assets of the banking sector, grouped by types of investment portfolio. Proceeding from the above, particular directions were developed for practical use, that allow for efficient selection of stock market instruments for inclusion in the investment portfolio of credit institutions in the conditions of high volatility and uncertainty of the financial market.

scholarly journals Russian banking system: searching for trust

2018 ◽  
Vol 212 ◽  
pp. 08016
Author(s):  
Marina Bogatyreva ◽  
Aleksandr Kolmakov ◽  
Mikhail Kolmakov
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Economic Life ◽  
Economic Resource ◽  
Russian Economy ◽  
Productive Area ◽  
Household Incomes ◽  
Relationship Of

The article is devoted to the study of trust, as an economic resource, contributing to the reduction of transaction costs. The paper is divided into two parts. In the first part, the authors define trust, as the transaction participants’ conviction that they can rely entirely on the counterparties’ promises. After that, the character of the damage that the society experiences from the disappearance of the relationship of trust is determined. These losses are caused by the switching of resources from the productive area to the scope of transaction management. Then the authors formulate the conditions that are necessary for the emergence of trust as such and for its spread in the Russian economy. There are two such conditions. The first is the impossibility of changing the contract unilaterally, without taking into account the interests of the counterparty. The second condition is the ability to control the execution of the transaction at any time by the counterparty. Later, the authors set out the reasons why trust has not spread in the political and economic life of contemporary Russia. The second part of the article explores the specific economic problems that arise in connection with the lack of trust between the parties to the contract. As an example, the banking sector, that is, perhaps the most important branch of the modern economy is considered. The second part begins with a short historical overview of the development of the banking sector of modern Russia. It is noted that real interaction between commercial banks and the Russian households began only in the 21st century, when the ruble exchange rate stabilized and the household incomes began to grow rapidly. At the same time, the practice of opportunistic behavior of commercial banks in relation to households was formed. This practice manifests itself in the systematic provision of false information to the customers or withholding truthful information from them. The opportunism of banks, along with high real interest rates, has caused the extremely small role played by Russia’s banking system in shaping consumer demand and, accordingly, overcoming the economic crisis. The passive position taken by the Bank of Russia in confronting banks and households is noted.

Criteria for classifying banks as systemically important in the Russian banking system

2020 ◽  
Vol 26 (10) ◽  
pp. 2385-2406
Author(s):  
E.A. Kalacheva ◽  
A.S. Lamekina
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Securities Market ◽  
Payment Systems ◽  
Correlation And Regression Analysis ◽  
Russian Economy ◽  
Total Capital ◽  
Macroeconomic Indicators ◽  
Systemically Important Banks

Subject. We address the criteria to classify banks as systemically important, their activities and the assessment of their impact on macroeconomic indicators. Objectives. The aim is to determine areas of regulation, based on criteria for classification of a bank as systemically important in the Russian banking sector, and taking into account its impact on the national economy. Methods. The study draws on methods of logical, statistical, and comparative analysis, as well as the correlation analysis to determine the correlation between financial indicators of systemically important banks and the country's GDP. Results. We offer the following criteria to determine systemically important banks, in addition to indicators used in the Russian banking practice: ‘interchangeability’ of a bank (based on the volume of payments in payment systems), ‘complexity’ (based on bank's activity in the securities market). Our correlation and regression analysis shows a significant positive impact of activities of too-big-to-fail banks on the Russian economy. The greatest impact on GDP is noted for indicators, like the volume of total capital, deposits of the population, loans to individuals. Therefore, the regulation can be aimed not only at preventing crisis situations and instability of the financial system, but can also be a tool for increasing the rates of economic growth. Conclusions. If the Bank of Russia uses the proposed additional criteria, it will enable to include in the list of such banks the internationally active credit institutions serving significant volumes of settlements in payment systems, and carrying out transactions with complex high-risk derivatives.

Bolstering the Business Activity and the Fundamental Problem of the National Banking System Reform

2018 ◽  
Vol 11 (3) ◽  
pp. 20-26
Author(s):  
Yu. A. Kropin
Keyword(s):  
Fundamental Problem ◽  
Banking System ◽  
System Reform ◽  
National Interests ◽  
Private Interests ◽  
Monetary System ◽  
Russian Economy ◽  
Current State ◽  
State Of Affairs ◽  
National Banking System

The subject of the research is the national banking system as part of the country’s monetary system. The purpose of the research was to prove that the national banking system in its current state is fundamentally incapable of supporting business activities in the Russian economy. The paper reveals the reason for such incapability; it is due to the existing contradiction between the whole and the part where the whole is the monetary system of the country having a market nature, and the part is the national banking system that has not changed its structure with the transition from the gold standard to the above-mentioned nature of the monetary system. Within the framework of the latter, banks, in their essence, act as functioning “banknotes”, and as such, they should not be in private ownership or have an interest in making a profit. Meanwhile, they actually behave as commercial companies pursuing their own private interests that do not coincide with the interests of the market (country). Therefore, the modern structure of the national banking system is hampering the country’s economic development. The paper concludes that the current state of affairs must be overcome; the contradiction between the whole and the part should be removed through the conversion of the banking system to a state system in form, private in content and national in essence. In this case, the functioning of the banking system will be directed towards the realization of national interests, the actual support of business activities in the Russian economy.

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