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.

Stress-testing Russian Banking System: Will Banks Need Government Assistance Again?

2010 ◽  
pp. 61-81 ◽  
Author(s):  
O. Solntsev ◽  
A. Pestova ◽  
M. Mamonov
Keyword(s):  
Stress Testing ◽  
Banking Sector ◽  
Stress Test ◽  
Banking System ◽  
Government Assistance ◽  
Methodological Issues ◽  
Loan Portfolio ◽  
Macroeconomic Indicators ◽  
Remote Stress ◽  
Capital Injections

The article analyzes factors that affect growth of the share of non-performing loans in the loan portfolio of Russian banks and proposes approaches for this share forecasting on the basis of dynamics of macroeconomic indicators. It also deals with methodological issues of remote stress-test of lending agencies. Using the results of conducted stress-test of Russian banks the authors assess their perspective capital needs in 2010 and estimate the share of government assistance in capital injections. Furthermore, the authors define the scale of vulnerable banks groups in the Russian banking sector.

IMPROVING THE EFFICIENCY OF USING INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE BANKING SYSTEM

2021 ◽  
Vol 4 (4) ◽  
pp. 41-46
Author(s):  
Ra’no Parpieva ◽  
◽  
Nafisa Norboyeva ◽  
Adiba Turayeva
Keyword(s):  
Information And Communication Technologies ◽  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Modern Society ◽  
Communication Technologies ◽  
Payment Systems ◽  
Information And Communication ◽  
Effective Use ◽  
The Impact

This article will serve to select the system required for the effective use of information and communication technologies in the banking system and the impact of national payment systems in the banking sector on modern society, the effective use of new modern information technologies in the system.Study of foreign experience to select information and communication technologies that should be used in modern banks with information and communication technologies in the banking system, which have been used before.

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.  

Russian banks will need tight control and pruning

2016 ◽  
Keyword(s):  
Banking Sector ◽  
Foreign Currency ◽  
Banking System ◽  
Tight Control ◽  
Content Type ◽  
Perceptions Of Risk ◽  
Banking Sector Development ◽  
Foreign Loans ◽  
The Cost ◽  
Systemically Important Banks

Subject Measures to keep Russia's banking system sustainable. Significance In 2015, the majority of Russian banks recorded operating losses, with the exception of Sberbank. Banks had to repay foreign currency-denominated loans whose cost rose as the ruble fell in value. Access to further foreign loans was severely constrained by Western sanctions, the cost of domestic borrowing was high and consumers' real incomes declined. The Central Bank of Russia (CBR) continues to support the sector by offering refinancing facilities and capital support for systemically important banks while shutting down banks engaged in high-risk activity. Impacts Western sanctions continuing into 2017 will worsen investor perceptions of risk. CBR intervention will avoid a collapse in depositor confidence. Geopolitical isolation will limit banking sector development.

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.

Digital transformation of the banking system in the context of sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imeda A. Tsindeliani ◽  
Maxim M. Proshunin ◽  
Tatyana D. Sadovskaya ◽  
Zhanna G. Popkova ◽  
Mariam A. Davydova ◽  
...  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Legal Regulation ◽  
State Regulation ◽  
Securities Market ◽  
Legal Analysis ◽  
Content Type ◽  
Regulatory Cooperation ◽  
Legal Guidelines

Purpose The purpose of this paper is to study the current state of the Russian banking system in the context of digital economy development, to establish and identify the benchmarks and needs of legal regulation, to study the potential possibilities of digitalization of relations in the banking sector in the mechanism of implementing prudential rules. Design/methodology/approach Using the method of political and legal analysis used in this study, the legal guidelines for the digitalization of the banking sector and the financial services market have been determined, which in the Russian legal system are strategic planning documents. Findings International research in the field of banking indicates that digitalization and globalization of the economy stimulate the processes of international regulatory cooperation and harmonization of legislation, the use of new approaches in the development and adoption of regulations in the financial market. The growth of digitalization of relations in the banking sector will contribute to the effective implementation of prudential rules, including those related to the need to protect public interests. Originality/value The study revealed a number of issues related to the digitalization of the activities of credit institutions that are professional participants in the securities market and the central bank as a financial mega-regulator, requiring a legal solution. Measures aimed at improving the current legislation and procedures of state regulation and supervision are proposed.

Central bank digital currencies: Potential risks and benefits

2020 ◽  
pp. 147-159
Author(s):  
Elena V. Sinelnikova-Muryleva
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Payment Systems ◽  
Economic Agents ◽  
Risks And Benefits ◽  
Monetary Authorities ◽  
Proper Design ◽  
Potential Risks

A growing activity has recently been watched in the sphere of central bank digital currencies (CBDC) creation, dictated by the desire of monetary authorities to increase the efficiency of payment systems and create an alternative to stablecoin projects like Libra. The paper discusses various types of CBCDs. Special attention is paid to potential risks and benefits associated with the emission of CBDCs, as well as their consequences for the banking sector and monetary policy. The first important issue associated with CBDC emission is the potential reduction of the role of the traditional banking system. The second issue is the change in the functioning of the monetary transmission channels as a result of the CBDCs emission. The third problem arises from the fact that in the event of a crisis some economic agents will prefer to transfer their funds from commercial banks to the CBDCs because they are less risky. This situation is expected to lead to instability of balances on deposit accounts in commercial banks. The problems listed are closely interrelated, and the significance and balance of risks and benefits associated with CBDCs emission are not completely obvious. At the same time CBDCs have a potential to become a new effective tool of monetary authorities in case of their proper design.

scholarly journals Factors Influence the Adoption of the Islamic Banking System: Customers Perception in Pakistan

ETIKONOMI ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 275-286
Author(s):  
Muhammad Masood Mir ◽  
Daniyal Iftikhar ◽  
Osama Ahsan ◽  
Nousheen Abbas Naqvi
Keyword(s):  
Customer Service ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Analysis Tool ◽  
Customer Preferences

The purpose of this paper is to analyze customer perceptions of the banking sector after the advent of the Islamic banking system. This research uses structural equation modeling as its analysis tool. The results of the analysis illustrate that the range of customer service and the length of the bank-customer relationship has a positive impact on customer preferences in choosing Islamic banking. This study provides a framework not only for the banking sector but also for other organizations. This study is an effort so that each organizational policy is appropriate to get customer preferences and optimal results in the form of satisfied and loyal customers.JEL Classification: G21, G29

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.

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