Effects of Bank Resolution on Financial Stability and Competitiveness of Banking Sector
Natalia Nikolaevna Natocheeva1, Tatiana Viktorovna Belyanchikova2, Yulia Alexandrovnа Lisina (Vasilyeva)3
1Natalia Nikolaevna Natocheeva, Plekhanov Russian University of Economics, Moscow, Russia.
2Tatiana Viktorovna Belyanchikova, Plekhanov Russian University of Economics, Moscow, Russia.
3Yulia Alexandrovnа Lisina (Vasilyeva), Plekhanov Russian University of Economics, Moscow, Russia.
Manuscript received on September 23, 2019. | Revised Manuscript received on October 15, 2019. | Manuscript published on October 30, 2019. | PP: 5092-5096| Volume-9 Issue-1, October 2019 | Retrieval Number: A2228109119/2019©BEIESP | DOI: 10.35940/ijeat.A2228.109119
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The paper provides an analysis of the effects of banking licence revocation by the regulator on the financial stability indicators of Russian lenders. The analysis has found mixed performance of resolution measures in terms of the financial stability of banks and their competitiveness in the wake of the banking sector resolution policy of the Bank of Russia. The authors propose a modification of the individual financial stability indicator equation developed by the regulator. The changes relate to calculating annual growth rate volatility not only for lending operations but overall with respect to the attraction and allocation of banking resources. The authors propose an equation for calculating the overall stability level of the banking sector and possible interpretations of the resulting findings in terms of the stability and competitiveness of the Russian banking sector.
Keywords: Financial stability, Banking competitiveness, Resolution, Regulator, Licence revocation, Individual stability indicator, Banking sector.