scholarly journals Problems of increasing the profitability of Russian commercial banks

2020 ◽  
pp. 6-12
Author(s):  
Aleksey Bobryshev ◽  
Svetlana Shamrina ◽  
Aleksandr Frolov
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Management System ◽  
Global Financial Crisis ◽  
Economic Capital ◽  
Foreign Banks ◽  
Risk Management System ◽  
The Global Financial Crisis ◽  
High Level ◽  
Credit Institutions

The article deals with the ways of obtaining income by banks. In modern conditions, taking into account the lessons and consequences of the global financial crisis, the regulator sets increasingly high requirements for the management and capital management system in credit institutions in the financial and banking services markets. In this regard, the number of banks that seek to improve the risk management system in order to bring it in line with the best foreign practices is constantly increasing. However, only a few Russian credit institutions have the necessary sources for calculating economic capital and its adequacy ratios. And only a few (mostly subsidiaries of large foreign banks) are able to make payments in accordance with international best practices. The ability to calculate economic capital, that is, the largest possible loss for a given time horizon, calculated with a set confidence interval, characterizes the high level of quality of the risk management system. The problems of increasing the profitability of commercial banks in the Russian Federation are also disclosed.

scholarly journals TRANSFORMATION OF BANKS’ RISK MANAGEMENT SYSTEM AS A PREREQUISITE FOR ENSURING THEIR FINANCIAL STABILITY

2019 ◽  
pp. 56-63
Author(s):  
Svitlana Borysivna Yehorycheva ◽  
◽  
Oksana Sergiivna Vovchenko ◽  
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Perspective Transformation ◽  
Capital Adequacy ◽  
Practical Significance ◽  
Risk Management System ◽  
The Global Financial Crisis

Urgency of the research. The importance of the problem of ensuring the financial stability of banks has grown significantly after the global financial crisis, and in Ukraine it has become relevant again since 2014. The situation of economic turbulence has led to a radical revision of the determinants of financial stability, as well as conceptual approaches to risk management of the bank. Target setting. Currently, the banking sector is on the verge of implementing internal capital adequacy assessment procedures (ICAAP), which determines the practical significance of substantiating the areas of improvement of the bank's risk management system. Actual scientific researches and issues analysis. Problems of bank’s risk management are revealed in the works of T. Vasylieva, V. Kovalenko, N. Tkachenko, N. Shulga and others. Methodological principles of ensuring the financial stability of the bank in conditions of uncertainty are reflected in the works of O. Kolodizev, N. Pogorelenko, T. Unkovskaya, M. Khutorna, I. Chmutova and others. Uninvestigated parts of general matters defining. Further research is needed on the functioning of the bank's risk management system, substantiation of key requirements, compliance with which would serve as a guarantee of financial stability of the bank in different conditions of the macroeconomic environment. The research objective. The purpose of the article is to substantiate the directions of perspective transformation of the bank's risk management system to ensure its financial stability. The statement of basic materials. The article stages the development of the bank's risk management system to substantiate the logic and determinants of further transformation of this system in order to enable long-term maintenance of its financial stability. Conclusions. The determinants of perspective transformation of the bank's risk management system in the aspect of ensuring financial stability are substantiated, which include: 1) spectrum of risks; 2) risk management priorities; 3) the complexity of the risk management methodology.

scholarly journals Main directions of the development of the risk management system in corporations

2018 ◽  
Vol 212 ◽  
pp. 07012
Author(s):  
Natalia Rykhtikova
Keyword(s):  
Risk Management ◽  
Comparative Analysis ◽  
Management System ◽  
Business Processes ◽  
General System ◽  
Management Systems ◽  
Foreign Companies ◽  
Risk Management System ◽  
Management Procedures ◽  
High Level

Actuality and relevance of implementation of the risk management processes in the general system of management in organizations are justified in this article. Three major issues can be pointed out as referred to the implementation of the risk management system in modern organizations, such as 1) a high level of costs combined with relatively long payback period; 2) lack of the universal approach to the implementation of the risk management procedures; and 3) difficulties in identification of perspective directions of the systems under consideration. The basic directions of development of the risk management systems in the corporate structures are defined based on the results of comparative analysis of the experience of Russian and foreign companies. The activity in the field of risk management of such corporations as “Rusgidro”, “NMLK”, the Investment Company “RUSS-INVEST”, “Severstal”, “Gazpromneft”, “Metalloinvest”, “Philips”, “Nestlé”, and “Unilever” became the object of our research. Comparative analysis of practices of implementation of the risk management system has been performed based on the following criteria: organizational structure of management, register and prioritization of risks, structure and methods of risk management, and effectiveness of the risk management systems. The results of the study allowed identifying the following basic directions of development of the risk management systems in the corporations: amending register of prioritization of risks; increasing level of integration of the risk management procedures into the basic business processes of the corporations; expanding of use of the external assessments, credit rankings, etc. in the framework of implementation of the risk management procedures; increasing level of unification of methods of risk assessment and management that finally would be a prerequisite for improving effectiveness of the risk management systems in organizations.

Impact of Financial Crisis on Credit Risk: Pre- and Post-financial Crises 
in an Emerging Economy

2020 ◽  
Vol 9 (2) ◽  
pp. 118-132
Author(s):  
Syed Moudud-Ul-Huq ◽  
Rabaka Akter ◽  
Tanmay Biswas
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Credit Risk ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
Commercial Banking ◽  
Real Economy ◽  
Credit Risk Management ◽  
The Global Financial Crisis

This aim of the article is to establish a model to discuss the reasons for changing the level of credit risk among the commercial banks of Bangladesh during the global financial crisis (GFC). Credit risk has been remaining as the essential and core risk in commercial banking activities. Multiple regression analysis is used to test the relationship among the level of credit risk as a dependent variable and financial crisis, other bank-level variables and macroeconomic variables. The causes of the GFC revealed not only systematic or structural imbalances but also the necessity to keep and strengthen the principles of credit risk management. We analyse the leading causes of the recent GFC. Moreover, the lessons that must be learnt from the weaknesses of credit risk management systems. Credit risk was found to respond to macroeconomic conditions, which indicate strong feedback effects from the banking system to the real economy. This article represents the analysis of the influence of the financial crisis on credit risk management in commercial banks and summarizes the challenges faced by banks for credit risk improvement. We hope that this reality creates new opportunities for managing credit risk in the future to increase this importance in the banks and the overall economy of Bangladesh.

APPLICATION OF ACTUALIZATION OF RISKS IN THE ACTIVITIES OF SYSTEMICALLY IMPORTANT BANKS OF THE RUSSIAN FEDERATION

2021 ◽  
Author(s):  
Petr Sergeevich Urlapov ◽  
Keyword(s):  
Risk Management ◽  
Russian Federation ◽  
Management System ◽  
Econometric Models ◽  
Third Wave ◽  
The Third ◽  
Risk Management System ◽  
The Russian Federation ◽  
Systemically Important Banks ◽  
Credit Institutions

The article discusses the issue of risk management of systemically important credit institutions in the context of the third wave of the coronavirus pandemic. The author uses previously developed econometric models. Updates the risks of the activities of systemically important credit institutions. The main findings can be used in the development of a risk management system.

scholarly journals The role of capital adequacy standards in creating financial safety of the bank: the evaluation and analysis of the survey results

2021 ◽  
Vol 20 (3) ◽  
pp. 641-657
Author(s):  
Irena Pyka ◽  
Aleksandra Nocoń ◽  
Mateusz Muszyński
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Conducting Research ◽  
The Global Financial Crisis ◽  
Credit Institutions

Motivation: After the global financial crisis, banks’ financial safety has been considered as a public good and put under closer control and supervision. The prudential regulations of credit institutions which are the main subject of the study, have been significantly tightened. Although the minimum level of banks’ own funds, set adequately to the risk, had been a fundamental indicator of banks’ financial safety since the end of 1980s, after the global financial crisis the quality of this capital has changed and the scope of its regulation has been increased. By respecting the new prudential standards of the Basel Committee on Banking Supervision at the international level, financial safety of the banks has been additionally put under the macro-supervision. The concern about the overregulation of the banking system raises many controversies, what justifies conducting research on this subject. Aim: The main purpose of the article is to identify changes in the bank’s strategies of creating financial safety after the global financial crisis, considering macro- and micro-prudential regulations, aimed at strengthening the level and quality of bank capital, based on the results of the conducted research. Results: The results of the empirical research indicate that there is a strong belief among management staff in commercial banks in Poland that the increase in the level and structure of the own funds in credit institutions rises their financial safety. The results confirm the intensification of the process of implementing Basel regulations in commercial banks in Poland.

PRACTICAL ASPECTS OF RISK ASSESSMENT OF CREDIT ORGANIZATIONS OF THE RUSSIAN BANKING SECTOR

2021 ◽  
Vol 3 (9) ◽  
pp. 19-24
Author(s):  
I. I. GLOTOVA ◽  
◽  
E. P. TOMILINA ◽  
I. P. KUZ’MENKO ◽  
◽  
...  
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Commercial Bank ◽  
Business Model ◽  
Management System ◽  
Banking Sector ◽  
Positive Experience ◽  
Risk Management System ◽  
The Subject ◽  
Credit Institutions

The article reflects the results of a study of the Russian banking sector on the subject of prevention and protection of credit institutions from risks, a separate place is given to risk management and risk assessment of a regional commercial bank. The main characteristics of the activities of a commercial bank are presented, a study of its risk management system is carried out and the main directions of its improvement are high-lighted. The positive experience of introducing ESG factors into the business model is considered to increase the efficiency of risks and obtain strategic advantages. ESG banking is an effective business model for re-gional banks that expands the number of considered banking risks and the vector of their management.

scholarly journals Risk management in a commercial bank

2020 ◽  
pp. 75-82
Author(s):  
S. V. Solonina ◽  
A. A. Labov
Keyword(s):  
Risk Management ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Management System ◽  
Financial Stability ◽  
Management Strategies ◽  
Banking System ◽  
Point Of View ◽  
Capital Adequacy ◽  
Credit Institutions

The study presents the problems of risk management of a commercial Bank as the most important element in the overall banking management system. The relevance of the study is due to the current economic and political situation in the country, as well as the instability of market conditions, which significantly complicated the risk management system in commercial banks, which contributed to the deterioration of their financial condition. The processes taking place in the global financial market in recent years have a significant impact on the banking system, significantly increasing Bank risks and reducing the financial stability of credit institutions. Differences are highlighted that reflect the priority aspects in assessing the risk management of a commercial Bank from the authors ‘ point of view. Risk management strategies in credit institutions are considered. A comparative analysis of the methodologies used to assess the risks and capital adequacy of commercial banks in Russia and abroad has been carried out, and features of their use have been identified.

scholarly journals TRANSFORMATIONS IN RISK MANAGEMENT OF CURRENCY EXCHANGE IN LITHUANIAN COMMERCIAL BANKS

2007 ◽  
Vol 13 (3) ◽  
pp. 191-197 ◽  
Author(s):  
Jonas Nedzvedskas ◽  
Povilas Aniūnas
Keyword(s):  
Risk Management ◽  
Central Bank ◽  
Commercial Banks ◽  
Management System ◽  
Market Risk ◽  
Basel Ii ◽  
Currency Exchange ◽  
Back Testing ◽  
Risk Management System ◽  
Exchange Risk

After the adoption of International Convergence of Capital Measurement and Capital Standards (widely known as Basel II requirements) in 2004 the risk management in commercial banks has changed dramatically. Lithuanian commercial banks are in transitional period now adapting their risk management systems to Basel II requirements. Market risk is considered one of the key risks in bank risk management structure, so proper management of market risk is essential for a modern bank. Currency exchange risk usually is the main component of market risk. Currency exchange risk management in Lithuanian commercial banks was not good enough; also the Central Bank's regulatory limits were liberal. But after the adoption of Basel II requirements, the entire risk management system is transforming and currency exchange risk management is affected. The objective of this paper is to demonstrate the transformations of currency exchange in Lithuanian commercial banks and propose an effective model for commercial banking. These transformations are performed in the regulatory system imposed by the Central Bank of Lithuania and through transformations of the bank's internal risk management system moving to internal (usually VaR based) models. VaR models are considered as modern methods for risk management. These models proposed by Central bank or other authorities for internal and statutory risk management in commercial banks. In this article, the proposed variation‐covariation VaR model was tested with real data using the back‐testing method. Back‐testing showed that the proposed model is reliable enough, because the number of mismatches was less than 5 % in all tested currency pairs during all testing. In most currency pairs mismatches percentage was lower than 3 %. Back‐testing results confirm that the VaR method is reliable enough for day‐to‐day using by financial institutions and traders.

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