Commercial bank’s anti-crisis management mechanisms for maintaining its financial stability
Abstract
Importance. The emergence of crisis phenomena in the banking sector is natural, as banking activity is carried out under risk conditions, therefore, measures to prevent such phenomena or minimize their negative consequences are also necessary. Anti-crisis management in the banking sector has been developed in many countries since the banking crisis of 2008–2009. In addition to stricter requirements to banks, new mechanisms for maintaining banking sector sustainability and crisis management have been adopted.
Objectives. The study is devoted to the analysis of existing crisis management mechanisms in Russian and foreign banks. The consequences of the practice of applying these mechanisms in global practice and opportunities for their improvement and application in Russia are studied too.
Methods. In the process of achieving this objective, the methods of scientific knowledge were used: analysis and synthesis, generalization, and description. The research is based on the study and analysis
of current scientific and practical materials and economic literature.
Conclusions and Relevance. It was concluded that the improvement of procedures of bank rehabilitation and crisis management in the banking sector required the creation of new institutions of the financial market and the possible revision of the existing regulatory framework. The instruments of preventive and reactive anti-crisis management used in the Russian Federation have been identified. Preventive anti-crisis management methods are stress testing, identification of significant risks and creation of internal policy to manage them. Reactive anti-crisis management is represented by the actions of the Fund for Banking Sector Consolidation and the existing precedents of voluntary “rescue” of a number of banks by their main creditors and owners. Also were identifi ed unresolved issues regarding fraud risk management by top management and bank owners, which are one of the possible causes of systemic banking crises.
Metrics
References
Averina, O. I. (2004) Antikrizisnii menedzhment: teoriya i metodologiya ekonomicheskogo analiza. Saransk, Izdatel’stvo Mordovskogo universiteta. (In Russ.)
Safari, R., Shateri, M., Shateri, H. Baghiabadi & Hozhabrnejad, N. (2016) The significance of risk management for banks and other financial institutions. International Journal of Research. 4 (4), 74–81.
Turbanov, A. (2012) [Anti-crisis mechanisms in the banking system]. Russian Journal of Money and Finance. 1, 20-23. (In Russ.)
Larina, O. (2011) [Overcoming banking crises: fundamental strategies and instruments]. Russian Journal of Money and Finance. 9, 17-21. (In Russ.)
Teimouri, S., & Dutta, N. (2016) Investment and bank credit recovery after banking crises. Journal of Financial Stability. 26 (C), 306-327.
Risin, I. E., Sysoeva, E. F. & Kostyanskaya, M. R. (2020) The Infl uence of the Asymmetry of the Banking System of the Russian Federation on Interbank Competition in the Conditions of Digitalization of Banking Activities. Lecture Notes in Networks and Systems. 115, 233-242. DOI: 10.1007/978-3-030-40749-0_28. (In Russ.)
Kostyanskaya, M. R. [Key approaches to risk management and features of risk management in bank]. In Sysoeva E.F. (ed.) Financial and credit relations and the mechanism of its implementation: Procedings of National Scientific and Practical Conference (seventh session), 1 July 2019, Voronezh, Russia. Voronezh, Nauchnaya kniga, pp. 115-120. (In Russ.)
Musdholifah, M., Hartono, U., & Wulandari, Y. (2020) Banking crisis prediction: emerging crisis determinants in Indonesian banks. International Journal of Economics and Financial Issues. 10 (2), 124-131. DOI: 10.32479/ijefi.9113.
Nakatani, R. (2020). Macroprudential Policy and the Probability of a Banking Crisis. MPRA Paper 101157.
Romanova, S. V. & Krutova, M. A. (2019) [Risks as the object of crisis management: analysis and basic methods of minimization]. Journal of Economy and Business. 3 (2), 82-86. DOI: 10.24411/2411-0450-2019-10443. (In Russ.)
Zhmachinsky, V. I., Ivanov, M. V. & Ilyushchenko, I. G. (2019) [Features of crisis management under present conditions]. Vestnik of Astrakhan State Technical University. Series: Economics. 2, 15-23. DOI: 10.24143/2073-5537-2019-2-15-23. (In Russ.)
Merzlikina, G. S. & Rylshchikova, S. A. (2017) [Conceptual framework for proactive crisis enterprise management]. Proceedings of the Voronezh State University of Engineering Technologies. 79 (4), 227-236. DOI:10.20914/2310-1202-2017-4-227-236. (In Russ.)
Makarkina, N. P. (2018) [Theoretical aspects of crisis management and preventive financial recovery of the organization]. Journal of Economy and Business. 5 (1), 151-154. (In Russ.)
Manushin, D. V. (2015) [Overviewing and clarifying the concept of crisis management in macroeconomics]. Financial analytics: science and experience. 37(271), 51-64. (In Russ.)
Asimakopoulos, G., Chortareas, G. & Xanthopoulos, M. (2018) The eurozone financial crisis and bank efficiency asymmetries: Peripheral versus core economies. The Journal of Economic Asymmetries. 18, e00099.
Solodov, A. K. (2018) Osnovy finansovogo risk-menedzhmenta. Moscow: A.K. Solodov publ. (In Russ.)
Bobyl, V. V. (2017) [Trends in Developing a New Concept of Bank Risk Management under Crisis]. Finance and Credit. 23 (38), 2258–2273. DOI: 10.24891/fc.23.38.2258. (In Russ.)
Beccalli, E. & Frantz, P. (2016) Why are some banks recapitalized and others taken over? Journal of International Financial Markets, Institutions and Money. (45), 79-95. DOI: 10.1016/j.intfin.2016.07.001
Diemer, M. (2016) Who should rescue subsidiaries of multinational banks? Journal of Financial Stability. 26, 159-174. DOI: 10.1016/j.jfs.2016.07.015.
Kostyanskaya, M. R. (2019) Specifics of banking risk management in the context of digitalization In Socio-economic development of Russia: problems, trends, prospects. Procedings of ХVIII International Scientific and Practical Conference, 25 June 2019, Kursk, Russia, pp. 137-144. (In Russ.)
Copyright (c) 2020 Kostyanskaya M.R.
This work is licensed under a Creative Commons Attribution 4.0 International License.
