Risk-Based Regulation Of Activities Of Credit Institutionsin Russia: Features Of Transition And Effectiveness

Ankina A.A.

The present article assesses the effectiveness of introducing risk-based regulation of activities of credit institutions on the basis of prevailing trends in financial indicators in the studied sector and the level of market risks that directly affect the forecast indicators of sustainability of institutions in future periods. The transition to more stringent financial standards and restrictions in the activities of credit institutions is due to the gradual implementation of the requirements of the Basel Committee on Banking Supervision, the specifics of which are disclosed by the author. Alongside with the changes in financial management standards, risk-based supervision is being implemented by the Central Bank of Russia and national banks of other countries.However, a systematic application of external risk-based supervision and internal risk management of organizations is necessaryto effectively prevent and minimize the negative impact of various factors. The research commented on the benefits of adapting enterprise risk management practices to the tools of credit institutions. The article reveals the features of various models and methods for assessing risks of credit institutions, including official approaches of the state regulator, VaR and others. Based on the selected data set, a correlation and regression analysis of the market risk components of credit institutionswas carried out. The substantiation of the effectiveness of the application of risk-based technologies in ensuring the financial stability of credit institutionshas been obtained.

Volume 12 | Issue 6

Pages: 2917-2924

DOI: 10.5373/JARDCS/V12I6/S20201254