Handling banking crises – the case of Russia (original) (raw)
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The Russian foreign exchange and financial market crisis of summer 1998 was caused by international movements of capital following the Asian crisis, and it plunged the Russian commercial banks into major difficulties. Practically the entire banking sector was hit by acute liquidity shortage. The main cause of the banking crisis must be seen in the banking sector regulation, which was defective if not lacking altogether. This encouraged the banks to take big exchange rate risks on liabilities in foreign currencies, and to lend with little risk diversification, which proved fatal in the crisis. The method used by the Russian authorities to deal with the crisis was also unorthodox by western standards. The crisis was overcome without major restructuring in the banking sector and accomplished at astonishingly little cost to the economy as a whole. However, the success in the form of good growth rates in every year since 1998 only seemingly justifies this neglect, for the relatively weak...
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Owing to a combination of domestic, regional and international factors, Russian banks have been strongly influenced by the worldwide financial crisis which started in the second half of 2008. In this paper, we estimate an early warning model for the Russian banking crisis. In a first step, we identify 47 Russian banks which failed after September 2008. Using the Bankscope dataset, we then show that balance sheet indicators were informative as early as in 2006 and 2007 about possible failures of these banks. Especially equity, net interest revenues, return on average equity, net loans, and loan loss reserves are identified as the early indicators with high predictive power.
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The special issue is dedicated to the problems and prospects of the banking system, as well as the financial markets of Russia and other countries. We discuss these problems mainly for Russian banking system, as well as for Europe Union one, Nigerian banking system etc. Some of these problems are general for all banking systems: inflation, liquidity, capital adequacy, combating money laundering, stability of the banking system, introduction of innovative technologies in finance (Fintech), cryptocurrencies etc, while some others are very specific for particular country. For Russia, for example, there is a problem of financing of the real sector of the economy, sanctions, as well as of narrowing of commercial banks pool, which practically leads to dictate of deposit rate values by the Central Bank of Russia, etc.
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PurposeIn this paper, the authors study the failure of Russian banks between 2012 and 2019.Design/methodology/approachThe authors analyze the entire population of Russian banks and combine a logit model with the survival analysis.FindingsIn addition to the usual determinants, the authors find that not-failed banks have higher levels of fulfillment of the Central Bank requirements of solvency, liquidity, provide fewer loans to their shareholders and own more shares of other banks. The results of this study suggest an asymmetric effect of the strategic orientation of banks: whereas the proportion of deposits from firms is negatively related to the probability of failure, the loans to firms are positively related to bankruptcies. According to this research, the fact of being controlled by a foreign bank has a significant negative relationship with the likelihood of failure and moderates the effect of bank size, performance and growth on the bankruptcy likelihood.Practical implicationsO...
Banking reform in Russia: problems and prospects
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Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format ECO/WKP(2004)33 Unclassified English -Or. English ECO/WKP(2004)33 2