In the course of its activities, commercial banks are subject to multiple risks. In general, bank risks are divided into 4 categories: financial, operational, business and emergency. Financial risks in turn include 2 types of risks: clean and speculative. Pure risks - incl. Credit risk, liquidity and solvency risks - may with improper management lead to a loss of bank. Speculative risks based on financial arbitration may result in their result, if the arbitration is carried out correctly, or loss - otherwise. The main types of speculative risk are the interest, currency and market (or positional) risks. Like any enterprise operating in the market conditions, the Bank is subject to risk of losses and bankruptcy. Naturally, seeking to maximize profits, the Bank's management at the same time seeks to minimize the possibility of damages. The two ways to a certain extent contradict each other. Maintaining the optimal ratio between profitability and risk is one of the main and most complex problems of bank management. The risk is associated with uncertainty, the latter is associated with events that are difficult or impossible to foresee. Credit portfolio commercial Bank subject to all major risks that accompany financial activities: risk of liquidity, risk of change interest rates, risk of non-payment on the loan. The last type of risk is especially important, since the non-risk of loans to borrowers brings large losses to banks and serves as one of the most frequent causes of bankruptcies of credit institutions.
Credit risk depends on exogenous factors associated with the state of the economic environment, with the situation, and endogenous, caused by the erroneous actions of the Bank itself. The possibilities of managing external factors are limited, although timely actions, the Bank may subject to a certain way to mitigate their influence and prevent losses. However, the main leverage of credit risk management lie in the field of domestic policy of the bank.
The main task facing bank structures is minimizing credit risks. To achieve this goal, a large arsenal of methods is used, comprising formal, semi-formal and informal procedures for assessing credit risks. Minimize credit risks Banks allows diversification loan portfolio, the quality of the custor can be determined on the basis of the risk assessment of each individual loan and the risk of the entire portfolio as a whole. One of the criteria determining the quality of the loan portfolio as a whole is the degree of diversified portfolio, under which they understand the presence of negative correlations between the loans, or at least their independence from each other. The degree of diversification is difficult to express quantitatively, so under diversification, rather, it is understood as a set of rules that the lender must adhere to. The most famous of them are as follows: not to provide a loan to several enterprises of one industry; do not provide a loan to enterprises of different industries, but interrelated with each other technological process, etc. In essence, the desire to maximize diversification representing the process of setting the most diverse loans, there is nothing but an attempt to form a loan portfolio with the most diverse types of risks in order to change in the external economic environmentwhere enterprises - borrowers are functioning, did not have a negative impact on all loans. Changes in the economic environment should affect the situation of borrowers' enterprises in different ways. This means that under the most differentiated risks, lenders understand the most diverse response of loans to events in the economy. Ideally, it is desirable that the negative response of some loans, when the likelihood of their non-risk increases, was compensated by the positive response of others when the probability of their obstruction decreases. In this case, it can be expected that the income will not depend on the state of the market and will be maintained. It is important here to note that if the concept of a variety of risks by species is quite difficult to determine, then the diversity of the impact rendered to the situation of borrowers by changes in the economic situation is quite simple, because The natural measure of the impact is the magnitude of the incomplete income on a separate loan compared to the planned. In other words, the impact on credit is the difference between the planned and actual income volumes by a separate loan for a certain period of time.
Different types Financial risks, in addition, are closely related to each other, which can significantly increase the overall banking profile of risk. For example, a bank exercising currency operationsIt is usually subject to currency risk, it will also be under an additional liquidity risk and interest risk if there will be open positions or discrepancies in the periods of requirements and obligations in the net position on emergency operations.
Operational risks depend: from the general business strategy of the bank; From its organization: from the functioning of internal systems, including computer and other technologies; from the consistency of the policy of the Bank and its procedures; From measures aimed at preventing errors in management and against fraud (although these risk types are extremely important and covered by banking risk management systems, this work does not pay much attention to them, since focused on financial risks). Business risks are associated with an external banking business environment, incl. With macroeconomic and political factors, legal conditions and regulatory conditions, as well as with the general infrastructure of the financial sector and the payment system. Extreme risks include all types of exogenous risks, which, in the event of an event, are able to expose the activities of the bank or undermine its financial condition and capital adequacy.
Deposit Risk - Risk associated with the possibility of no return deposit deposits (deferences of deposit certificates). This risk It is rare quite rarely and is associated with an unsuccessful choice of a commercial bank for the implementation of enterprise deposit operations. Nevertheless, cases of implementation of deposit risk are found not only in our country, but also in countries with a developed market economy. Abroad, the insured of this type of risk is the bank, and the insurance is carried out in a mandatory form.
Credit risk is the risk associated with the danger of non-payment by the borrower of the principal debt and interest due to the creditor. The causes of the occurrence of credit risk may be the unscrupulousness of the borrower, the deterioration of the competitive position of a particular company, adverse economic conjuncture.
Dear Chairman and Members of the State Attestation Commission, you are invited to the topic of the topic - the monetary policy of the Central Bank of the Russian Federation. This topic is currently relevant, since today in Russia, a rational monetary policy is intended to minimize inflation, to promote sustainable economic growth, support the exchange rate ratios, at an economically reasonable level, stimulating the development of export and import-substituting industries, and significantly replenish the country's foreign exchange reserves .
To analyze how the Central Bank coped with the tasks of economic reforms in front of him at each stage, what steps it is necessary to take and what instruments are monetary credit Policy Enter further - to be the main purpose of the study of this work.
As methods of study used mainly statistical models and methods, such as grouping method, comparative analysis, Methods of classifications and graphic images.
The theoretical and methodological basis of the study was served both general systematic courses on monetary handling and special publications and economic periodicals.
The information base of the study and practical material for analysis, generalizations and conclusions formulated in this paper served reported and forecast data from the Central Bank of the Russian Federation.
Exploring theme thesisI came to the following conclusions:
As we all know, since the appearance of the first banks, the monetary and financial economy of many countries is in a constant process of structural changes. Rebuilding credit system, new types of credit and financial institutions and operations arise, the system of relations between banks and financial and credit institutions is modified.
Significant changes occur in the functioning of banks: the independence and role of banks in national economy; The functions of the current and new financial and credit institutions are being created; Survident Efficiency Growth Ways banking service internal and foreign economic relations; Search for optimal delineation of the fields of activity and functions, specialized financial and credit and banking institutions; New banking legislation is being developed in accordance with the tasks of the current stage of economic development.
And in order to cope with these tasks, the formation of a clear mechanism of monetary regulation, allowing the Central Bank to influence business activity, control the activities of commercial banks, to achieve stabilization of money circulation.
It is historically reasonable that monetary policy is a very effective tool for the impact on the country's economy, which does not violate the sovereignty of most business system subjects. Although there is a limitation of the framework of their economic freedom (without this, any regulation of economic activity is generally impossible, but the key decisions taken by these subjects, the state affects only indirectly.
Ideally, the monetary policy is designed to ensure the stability of prices, full employment and economic growth is such a higher and final goal. However, in practice, it is necessary to solve and narrower, responding to the urgent needs of the country's economy.
The main purpose of the monetary policy is currently helping the economy in achieving the production volume characterized by full-time, lack of inflation and growth. In our country, at this stage, rational monetary policy should minimize inflation and decline in production, prevent unemployment growth. The regulatory mechanism includes methods, tools for regulating cash and non-cash banking operations and specific forms of control over the dynamics cash, bank interest rates, bank liquidity on the macro and micro level.
In this regard, it seems to be correct to consider such monetary policy tools first such as the operation of the central bank on the open market, changing the norm of mandatory reserves and accounting rates, their role and application in russian economyAnd then other mono-credit tools used by the Bank of Russia at the present stage, as well as those offered to the use of economics scientists.
We must not forget that monetary policy is extremely powerful, and therefore an unusually dangerous tool. With its help, you can get out of the crisis, but also the sad alternative is not an exacerbation of negative trends in the economy. Only very suspended decisions made at the highest level after a serious analysis of the situation, consideration of alternative ways of impact of monetary policy on the state economy, will give positive results. The central emission bank of the state acts as a monetary policy conductor. Without the right monetary policy held by the Central Bank, the economy cannot effectively function. The role of the Central Bank in the current conditions of development and stabilization of the economy is growing day. The central bank today is a key element of the financial and credit system of any developed state. He acts as conductor of official monetary policy. In turn, monetary policy, along with budget, is the basis of the entire state regulation of the economy. It should continue to continue the implementation of activities aimed at raising the sustainability and competitiveness of the banking sector Russian Federation. In addition, it is necessary to improve the banking supervision system.
It seems that the gradual reduction of the participation of the Bank of Russia in the internal currency market It will contribute to the transition to the mode of a freely floating exchange rate, thereby the Central Bank will be able to focus its efforts at the maximum accurate achievement of the objectives of inflation. It should not be forgotten that support for the Bank of Russia's monetary policy actions actions of the Government of the Russian Federation in the field of budgetary, tax, tariff, structural and social policy is an important part of anti-inflation policy in Russia.
The Central Bank of Russia primarily takes care and sustainability of the country's banking system. It analyzes the degree of compliance with banks of economic standards, the frequency of deductions to centralized funds and determines the effectiveness of state regulation of banking activities.
Status, tasks, functions, powers and principles of the organization and activities of the Central Bank of the Russian Federation, the structure of the banking system of Russia and its function, as well as the activities of commercial banks and methods for regulating and monitoring their work, allowing to ensure the balance of total demand and suggestions, are determined by the laws "about Central Bank of Russia "and" On Banks and Banking ". In these documents, direct holistic and continuous control and supervision of the activities of commercial banks of Russia is the prerogative of the Central Bank of the Russian Federation. This axiom is necessary in order to ensure the sustainability of individual banks and the entire system as a whole. Thus, the Central Bank of Russia is the "fluger" of the state, which indicates the direction of the monetary policy of Russia, and therefore the level of welfare of Russians.
So, monetary policy is the activities of state authorities and management aimed at regulating relations related to lending and money circulation, the purpose of which is the economic growth of the state, the full employment of resources in the country's economy, price stability, sustainability national currency.
To achieve these goals, central banks of states use various tools. The most famous of these are open market operations, changing the norm of mandatory reserves and refinancing rates. IN russian legislation It also provides for their application, but the proper impact on the country's economy, these tools do not provide. First of all, this is explained by the underdevelopment of the investment and stock market in Russia. Even though in last years The credit investments of Russian banks in the non-financial sector increased, their level remains still very insignificant: 13-15% of the GDP value, which is almost four times less than the global norm. The influence of the stock market remains as minor, because the total market value applying enterprises in the market does not exceed 20% of GDP, and this is 3-5 times less than in countries Western Europe.
Thus, the main goal of monetary policy in Russia at the present stage should be the creation of favorable conditions for investment, primarily in the real sector of the economy.
On November 25, 2005, the main directions of the Unified State Monetary Policy for 2006 were published in the Bulletin of the Bank of Russia for 2006. As the main goal of state monetary regulation, as before, is a limitation of increment consumer prices (within 7 - 8.5%), to achieve that the Bank of Russia will use already known tools: deposit auctions for attracting funds of credit institutions (for a period of two weeks to three months), auctions of exchange modified repo for the sale of OFZ with the obligation of the reverse ransom (for a period of 28 days to six months), direct sales by the Bank of Russia of state bonds from their portfolio without the obligation to redeem, carrying out lombard credit auctions, Overnight loans and intraday. In 2006, the Bank of Russia provided for the issuance of its own bonds for up to one year. Such a policy, according to the Bank of Russia, will ultimately be promoted to stimulate investments and an increase in economic growth rates in processing industries.
As studies have shown in this work, through the monetary policy over the past few years, conditions have been created for sustainable development Economics and maintaining financial stability (for this purpose, the Bank of Russia has made the main focus (and continues to do) on a sustainable decline in inflation, in addition, the Central Bank of the Russian Federation carried out control over the formation of a monetary supply and regulated the liquidity of the banking system, taking into account the trends in the development of demand for money). Certain regulation trends were formed: increasing the attractiveness of the national currency as a means of savings and payment, the formation of money supply in the necessary volumes, liberalization of currency regulation and strengthening confidence in the country's banking system. The implementation of the outlined trends, as well as further economic growth, will contribute to the most efficient use of monetary policy tools.
As was revealed during the study, the main problems of monetary policy are the short-term effect of activities carried out, as well as the insufficient effectiveness of the tools of the mechanism under study, mainly refinancing systems, deposit tools, interest policy. In particular, interest policy, when the refinancing rate exceeds market rates, and the rates of the interbank market are formed independently of the existing refinancing rate, leads to the fact that many credit organizations are in the situation of the practical impossibility of obtaining funds from the market or at the Central Bank. Deposit operations are unattractive even in conditions of oversupply of liquidity due to very low rates, and due to the poorly well-established refinancing system distorts the monetary regulatory mechanism even subject to the effectiveness of all other tools.
All of the above shows that it is necessary to seek new ways to develop and improving the monetary regulatory system. First of all, to achieve goals in the long run, it is necessary to support the monetary policy of the Bank of Russia actions of the Government of the Russian Federation in the field of budgetary, tax, tariff, structural and social policy,
Secondly, you should pay special attention eliminate the shortcomings of the monetary control tools used. In particular, to change the approach to establishing the refinancing rate and market rates (setting them at the same level), which will contribute to more efficient maintenance of the liquidity of the banking sector. In order to improve the efficiency of sterilization of funds, it is necessary to revise the rates on deposit operations. In addition, you need to rebuild the current refinancing system by making changes to national specifics, in particular, to change the existing lombard list, expand the practice of applying such an important refinancing tool as providing medium-term loans on bail credit requirements banks to clientele, etc.
In essence, a solution to a number of problems will create a modern monetary regulatory system, which will contribute to stability in the banking sector and will give a powerful impetus to further economic growth.
Thank you for attention!
In the course of its activities, commercial banks are subject to multiple risks. In general, bank risks are divided into four categories: Financial, operational, business and emergency.
Financial risks In turn, include two types of risks: clean and speculative. Pure risks Including credit risk, liquidity and solvency risks, can lead to a loss of bank in improper management. Speculative risks Funded in financial arbitration may have their result of profit if the arbitration is carried out correctly, or loss - otherwise. The main types of speculative risk: interest, currency and market (or positional).
Different types of financial risks, moreover, are closely related to each other, which can significantly increase the overall bank profile risk. For example, a bank exercising currency transactions is usually subject to currency risk, but it will also be under an additional liquidity risk and interest risk in the event that there will be open positions or discrepancies in the periods of requirements and obligations in the net position on urgent operations.
Operating risks depend on: the general business strategy of the bank; his organization; functioning of internal systems, including computer and other technologies; consistency of the Bank's policy and its procedures; measures aimed at preventing errors in management and against fraud. Business risks are associated with an external banking business environment, including macroeconomic and political factors, legal conditions and regulatory conditions, as well as with the overall infrastructure of the financial sector and the payment system. Extreme risks include all types of exogenous risks, which, in the event of an event, are able to expose the activities of the bank or undermine its financial condition and capital adequacy.
We characterize financial risks related to pure risks, i.e. leading in the event of a risk case only to negative consequences.
Deposit risk - Risk associated with the possibility of non-return of deposit deposits (deferences of deposit certificates). This risk is rarely found and is associated with an unsuccessful choice of a commercial bank for the implementation of deposit operations of the enterprise. Nevertheless, cases of implementation of deposit risk are found not only in our country, but also in countries with a developed market economy. Abroad, the insured of this type of risk is the bank, and the insurance is carried out in a mandatory form.
Credit risk - The risk associated with the danger of non-payment by the borrower of the principal debt and interest due to the creditor. The causes of the occurrence of credit risk may be the unscrupulousness of the borrower, the deterioration of the competitive position of a particular company, adverse economic conjuncture.
UDC 336.77
On the question of modern approaches to the management of financial risks of commercial banks
Natalia Ivanovna Denisova, Cand. ECON. Sciences, head. Department of Finance and Credit, E-Mail: [Email Protected], Lyudmila Mikhailovna Chizhenko, Associate Professor, Department of Economics and Finance
e-mail: [Email Protected], Ryazan branch of Moscow University named after S. Yu. Witte,
http://www.miv.ru/ryazan.
The article presents the risk-forming factors of banking. Modern approaches to management financial risks Commercial banks. Reveal directions to reduce banking financial risks in modern conditions.
Keywords: financial risks; Commercial banks; control; credit risks; Factors; risk; Methods.
DOI: 10.21777 / 2307-6135-2017-1-80-83
One of the most important points in the economic sphere of the Russian Federation during the period of market relations is to develop effective mechanism Business management risks. Any risks are an integral attribute of entrepreneurship in all sectors of the economic and social sphere. But the banking sector submitted by the network of credit institutions submitted in this aspect is especially vulnerable in this aspect, the main part of which are commercial banks. The main source of profit commercial Bank is the provision of their credit resources in the loan. In the conditions of instability of the financial situation, the activities of commercial banks are associated with the presence of various kinds of risks, primarily associated with the possibility of non-return provided by resources on a borrowed basis.
The borrowed activity is always accompanied by the presence of risks, the provision of loans is initially a risky type of business. Changes in recent years financial markets, growth of interaction between countries, internationalization of flows money They contributed to the emergence of new development opportunities for banks, but at the same time the emergence of new risks. Obviously, it is not possible to fully avoid risk in terms of market principles, and even more so in the context of the crisis. Therefore, as one of the priorities of banking activities, ensuring minimization of financial risks, which would ensure maximum profits by reducing the possibility of losses in the process of conducting credit operations. Therefore, the most important component of the Commercial Bank's credit policy is to manage banking risk management. It is from the effectiveness of the management of financial risks of a commercial bank in the process of implementing their credit policies, the success of the Bank's activities and the possibility of its further development depends.
Risk as economic category There is no single and clear definition. In the existing literature, the concept of risk, its properties and elements is interpreted by ambiguous
but, there is no single approach to understanding its content, the ratio of objective and subjective parties. A variety of opinions on the essence of risk is explained, in particular, the multidimensionality of this phenomenon, the almost complete lack of its interpretation in the existing legislation, as well as its insufficient accounting in real economic practices and management activities.
The possibility of deviation from the intended target for which the selected alternative was carried out;
The probability of achieving the desired result;
Lack of confidence in achieving the goal;
The possibility of material, moral and other losses associated with the implementation of the alternative chosen under uncertainty.
These elements in their relationship and interaction reflect the risk content. Pay attention to such an important risk element as the presence of a probability of deviation from the selected goal - such deviations may have both negative and positive consequences. It is impossible not to note the direct proportional connection between the risks and profitability of operations in market conditions in all fields of activity.
Credit organizations playing an important role in the economic sphere modern Miraare commercial structures whose activities pursue the extraction of profits as a main goal.
Essential to ensure an increase in the efficiency of the Bank's activities is the classification of risks, depending on the degree of sustainable development.
To ensure efficient bank risk management, it is important to identify the factors on which risks depend. From these positions traditionally allocate groups of external and internal risks. The composition of external risks are political, economic, sectoral, demographic, social, geographical and other risks.
Risk management includes the development of strategy and tactics. The strategy involves developing areas and ways to achieve the goal based on long-term forecasting and strategic planning. When developing a risk management strategy, it is necessary to proceed from the observance of the principle of break-even activity and the focus on ensuring the optimal ratio of profitability and the level of risks taken by the Bank.
The strategy is predetermined by the tactics of management, including specific methods and techniques for achieving the goal under specific conditions. Tactics is a choice of all solutions that do not contradict the strategy, the most optimal option and the most suitable in the specific situation of the methods and methods of management contributing to the degree of risk.
In the risk management system, three main stages consisting in risk analysis (identification and evaluation) can be highlighted; Risk control (monitoring) and risk minimization (levelation).
As the first stage, the risk analysis is considered in determining and assessing the risk. In the process, it detects factors that enhate an increase or decrease in a specific type of risk in carrying out certain banking operations.
In the process of the next step - risk control - measures are being implemented on timely revealed risk in order to reduce it or exception. There are three ways to control the risk: through internal audit, external audit and internal control.
Risk failure (represents evasion from events related to
risk, that is, the rejection of those operations that contain the risk unacceptable for the bank, which also means the refusal to obtain a part of the profits);
Risk reduction (implemented mainly through self-insurance - reservation, diversification, limitation, minimization);
Risk transfer to a third party (implemented through insurance, hedging, distribution).
An important point In the management of credit risks is the Bank's analysis of the ability of existing and potential borrowers to repay the principal amount of debt and making interest payments, as well as by receiving pledges and guarantees. The organization of constant monitoring and subsequent control over the overdue balances of loan debt is necessary.
Risk management occurs on three levels. For each level, various risk assessment methods and methods of controlling them are used.
1. Individual level: implies analysis, evaluation and reasonable reduction in risks on a specific transaction. Individual credit risk management is usually carried out for transactions that do not fall under the aggregated level.
2. Aggregated level: implies the development of programs and the development of criteria that the transaction must be configured, which makes it possible to limit the amount of risks taken by the Bank. Credit risk management at the aggregated level is carried out, as a rule, for typical transactions with a volume of credit risk not exceeding the established value.
3. Portfolio level: implies an assessment of total credit risk, its concentration, dynamics, etc., as well as the development of proposals for the establishment of limits and management decisions in order to reduce risk.
As the main factors that increase credit risk can be called:
The concentration of credit risk, manifested in the provision of large loans to individual borrowers or a group of related borrowers, and also if the debtors of the credit institution belong to individual sectors of the economy, to one geographical region or if there are other obligations that make them vulnerable to the same economic factors ;
Large share of loans and other bank contractswho fall on experiencing certain financial difficulties customers;
Frequent or significant changes in the Bank's policy policy;
A large share of new and recently attracted customers, which the Bank has not enough information;
Liberal credit policy of the Bank (provision of loans in the absence of necessary information);
Concentration of the Bank's activities in poorly studied, new areas;
The presence of unsecured loans or mortgage deposit.
An important role in ensuring protection against credit risks is played by the organization of banking control, the central place in which the analysis of the quality of the loan portfolio is occupied.
The loan portfolio acts as the main source of bank revenues and at the same time as the main risk factor when placing assets. Its structure and quality is predetermined by the stability of the Bank's activities, its reputation, value financial results. The composition and structure of the portfolio is carefully analyzed by credit workers and senior employees in order to identify excessive concentration of loans in certain areas or in individual borrowers, as well as the presence of problem loans.
An exceptionally important role is played by the organization of banking monitoring
ring as the main method of bank control. Its purpose is to control the quality of the loan portfolio, conducting an independent examination, timely identification of deviations from the adopted standards and the bank's credit policy settings.
As the main directions, the following may be called:
1. Improvement in the field of organizational issues.
2. Improvement in the field of methodological issues.
The third direction of improving the risk management is to improve credit risk management methods, one of the most important ways of which is to improve the quality of insurance protection against credit risks. Credit risk insurance is infrequently found in Russia and is considered a new and insufficiently developed direction. But as the market is satisfied with the classical insurance products and under pressure from increasing competition, insurers will have the need to address this species to meet the needs of insurers and to hold their market positions. Through insurance, a person implements one of the most important needs - the need for security.
As part of the cooperation of insurers and banks, it is gradually the obvious interest of banks to insurance protection against credit risks in connection with increasing lending volumes. At the same time, many Russian insurers are not yet ready to accept such risks for insurance.
Insurance is a sphere of activity, a fairly rigid state regulated by the state.
Credit risk insurance for a commercial bank will have varieties depending on the types of active banking operations, which are accompanied by credit risk, as well as categories of borrowers.
Literature
1. About banks and banking: the federal law RF from 03.02.96 No. 17-FZ.
2. On audit activities: Federal Law of December 30, 2008 No. 307-F3.
3. On the organization of internal control in credit organizations and banking groups: the position of the Central Bank of the Russian Federation of December 16, 2003 No. 242-p.
4. Widowina O. N. Insurance of credit risks of banks. http://www.ins-education.ru.
5. Glushchenko V. Risk Management. Insurance. - M.: Infra-M, 2009. 336 p.
6. Denisova N. I., Chizhenko L. M. Insurance of ownership of car owners - new regional approaches // Potential of the socio-economic development of the Russian Federation in new economic conditions: Materials of the II International Scientific and Practical Conference. 2016. p.177-186.
7. Denisova N. I., Chizhezko L. M., Chizhenko I. P. Insurance market of Russia: problems and development prospects // Bulletin of Moscow University. S. Yu. Witte. Ser. 1: Economy and management. 2016. No. 1 (16). P. 51-57.
8. Lavrushshin O. I., Afanasyeva O. N., Kornienko S. L. Banking: Modern lending system. - M.: Knourus, 2012. 264 p.
9. Lavrushushin O. I. Bank risks. - M.: Knourus, 2012. 233 p.
10. Nikitin T. V. Bank management. - SPb.: Peter, 2012. 160 s.
11. Tikhomirova A. V. Risks in anti-crisis management // Materials of the International Scientific and Practical Conference. Vol. 2. - M.: GUU, 2008. P. 132-141.
To the Issue of Modern Approaches to Financial Risk Management of Commercial Banks
Natalya Ivanovna Denisova, Candidate Of Economics, Head. The Department of Finance and Credit, Ryazan Branch of Moscow Witte University
Lyudmila Mihaylovna Chizhenko Placed Seconds, Associate Professor of Economics and Finance, Ryazan Branch Of Moscow Witte University
The Article Presents The Risk Factors of Banking. IDENTFIED Modern Approaches to Financial Risk Management of Commercial Banks. REVEALED REDUCE BANKING RISKS IN MODERN CONDITIONS.
Keywords: Financial Risks, Commercial Banks Management, Credit Risk, Factors, Risk, Methods.
Banking risks are divided into four categories: financial, operational, business and emergency.
Financial risks include two types of risks: clean and speculative.
Pure risks (credit risk, liquidity and solvency risks) can lead to a loss to the bank in improper management.
Speculative risks (interest, currency and market (or positional) risks) based on financial arbitration may have their result, if the arbitration is carried out correctly, or loss - otherwise.
Like any organization working in the market conditions, the Bank is subject to risk of losses and bankruptcy. The bank's management, seeking maximizing profits, at the same time wishes to minimize the possibility of damages. Maintaining the optimal relationship between profitability and risk is one of the main and most difficult issues of bank management.
The risk is associated with the uncertainty associated with events that are difficult or impossible to foresee. The loan portfolio of the commercial bank is subject to all major types of risk that are accompanied by financial activities: risk of liquidity, risk of interest rates, risk of non-payment on a loan. The last type of risk is especially important, as the non-risk of loans to borrowers brings large losses to banks and serves as one of the most particular causes of bankruptcies of credit institutions.
Credit risk depends on exogenous factors associated with the state, economic environment, conditions, and endogenous caused by the erroneous actions of the Bank itself. The possibilities of managing external factors are limited, although timely actions, the Bank may, to a certain extent, mitigate their influence and prevent losses. However, the main leverage of credit risk management lie in the field of domestic policy of the bank.
Minimize credit risks of banks allows the diversification of a loan portfolio, the quality of which can be determined on the basis of the risk assessment of each individual loan and the risk of the entire portfolio as a whole.
The degree of diversification of the loan portfolio is the presence of negative correlations between loans or their independence from each other.
The degree of diversification is difficult to express quantitatively, so under diversification, it is rather a set of rules that the lender must be adhered to, such as: failure to provide a loan to several enterprises in one industry; failure to provide loan to enterprises of various industries, interconnected with each other technological process, etc.
The desire for maximum diversification representing the process of a set of a wide variety of loans is an attempt to form a loan portfolio with the most diverse types of risks in order to change in an external economic environment where enterprises-borrowers are functioning, no negative impact on all loans. Changes in the economic environment should affect the situation of borrowers' enterprises in different ways. This means that under the most differentiated risks, lenders understand the most diverse response of loans to events in the economy. In this case, it can be expected that the income will not depend on the state of the market and will be maintained.
Different types of financial risks, moreover, are closely interrelated, which can significantly increase the overall banking profile of risk. For example, a bank exercising currency transactions is usually subject to currency risk, but it also will be under an additional liquidity risk and interest risk if there will be open positions or discrepancies in the periods and obligations in the net position on urgent operations.
Deposit risk - risk associated with the possibility of non-return of deposit deposits (non-missing certificates). This risk is rarely found and is associated with an unsuccessful choice of a commercial bank for the implementation of the organization's deposit operations.
45. International Financial and Credit Institutions.
International Financial Institutions
In order to develop cooperation and ensure the integrity and stabilization of the World Economy, international monetary and credit and financial organizations. Among them, the International Monetary Fund (IMF) and the World Bank Group (WB) are held.
The IMF and the WB Group have common features. They are organized by analogy with joint-stock company. Therefore, the share of contribution to capital determines the possibility of the country's influence on their activities. The headquarters of the IMF and the WB Group are located in Washington. The BB Group includes the International Bank for Reconstruction and Development (IBRD) and its three branches.
The main objectives of the IMF are as follows:
- promoting balanced growth international Trade;
- providing loans to member countries to overcome currency difficulties associated with their balance of payments;
- Cancel currency restrictions;
- Interstate currency regulation by monitoring compliance with the structural principles of the global monetary system recorded in the Foundation Charter.
IBRD, like the IMF, provide not only stabilization, but also structural loans. Their activity is mutually linked.
The specifics of the IBRD lies in its presence of three branches:
1) The International Development Association (Mar was established in 1960), provides preferential interest-free loans;
2) the International Finance Corporation (IFC, established in 1956), stimulates the direction of private investment in the industry of developing countries;
The Multilateral Investment Guarantee Agency (Mages, was established in 1988), carries out insurance.
International Financial Institutions - IMF and the WB Group - play an important role in regulating international credit relations.
The European Bank for Reconstruction and Development (EBRD) was established in 1990, London Location. The main goal of the EBRD is to promote the transition to market economy In the states of the former USSR, the countries of Central and Eastern Europe. The EBRD credits projects only within certain limits.
The EBRD specializes in lending to the production, technical assistance to the reconstruction and development of infrastructure, equity investments, especially privatized enterprises. Advantageous areas of EBRD activities, including in Russia, is financial, banking sectors, energy, telecommunication infrastructure, transport, agriculture.
Regional currency and financial organizations of Western European integration are composite part its institutional structure. They pursue the goal of strengthening the integration and creation of the Economic, Currency and Political Union (EU). The main regional EU regional organizations include: European Investment Bank (EIB, Luxembourg), European Development Fund (EPR, 1958), European Fund for Agriculture Organization (1969), European Regional Development Fund (EPRR, 1975 ), European Currency Institute (Eva, Frankfurt am Main, 1994).
A special place among international monetary and credit institutions is the Bank of International Settlements (BMR, Basel, 1930). Essentially, this is the Bank of Central Banks. BMR facilitates their cooperation, accepts their deposits and provides loans.
International Financial and Credit Institutionscreated and operate on the basis of interstate agreements in order to regulate international economic relations. These include: Bank of international settlements (BMR), IMF, World Bank Group, European Bank for Reconstruction and Development (EBRD), European central bank (ECB).
Bank of international settlements (BMR)- The oldest global financial institution. It was created in 1930 on the basis of the Hague agreement of the central banks of six countries (Belgium, Great Britain, Germany, Italy, France, Japan) and the Convention of these States with Switzerland, where BMR is located (Basel). The founders of the BMR and the initial subscribers on its shares were along with the central banks of the specified countries of the US Commercial banks headed by the Banker's home Morgana. US Federal Reserve Banks have correspondent relationships with BMR. Representatives of the United States participate in the forums organized by BMR. Unlike the IMF and the World Bank, the leading position in the BMR belongs to the countries of Western Europe.
BMR - International Bank of Central Banks. Currently, BMR includes 34 countries, including Russia (since 1996).
The main activities of the BMR:
1) promoting cooperation between central banks in the field of monetary and currency policy in order to stabilize international monetary and credit relations (carrying out joint currency interventions of central banks in order to support leading currencies, organizes meetings by central banks to coordinate world currency and credit policy);
2) agent and manager in various international currency, settlement and financial transactions, a trustee or a bank depositary for international loans;
3) providing an intermediate loan under the guarantee of the Central Bank to countries awaiting Credit IMF;
4) Leading Information Research Center. Annual reports of BMR are one of the authoritative economic publications in the world.
Created at BMR Basel Committee on Banking Supervision Published periodically updated Basel concordate on the problem of improving banking supervision (especially for international operations of banks), developed the Basel Agreement (1988) on the international unification of capital calculation and on capital standards (Basel-1). Leading banks, including Russian, are obliged to comply with these requirements. In the early 2000s. New requirements (Basel-2) have been developed to determine capital adequacy, taking into account risks, on banking supervision and compliance with market discipline (transparency and accuracy of information).
International Monetary Fund (IMF)recognized as the main interstate body of regulating world currency and credit relations. The IMF has the status of a specialized UN agencies. It was established at the UN International Monetary and Finance Conference (1944) in Bretton Woods (USA) and began to function in 1946. The place of residence of the governing bodies - Washington (USA). IMF members are 184 countries (2004). Russia has become a member of the IMF in 1992
The CAPITAL IMF consists of contributions from Member States. Each country has pronounced in special borrowing rights (SDR) quota, determining the amount of subscription (contribution) to the IMF capital. The size of the quota is established on the basis of the country's specific gravity in the global economy. The number of votes that the member country has in the IMF governing bodies depends on the quota value.
The main activities of the IMF:
1) regulates international currency relations, a) creating international liquid assets in the form of a SDR to increase reserves of member countries, b) regulating the regime exchange rates member countries, c) seeking to eliminate currency restrictions on current international operations;
2) regulates international credit relations a) by providing loans to member countries, b) through the provision of creditors and borrowers of intermediary services, as well as c) as a guarantor of the debtors' solvency (achieving an agreement on the provision of the IMF of the loan is regarded as an indicator of international confidence in the country borrower);
3) performs constant supervision A) for macroeconomic and monetary policies member countries and b) for the state of the global economy. States are obliged to regularly provide the Fund a wide range of information about the state of their economy.
The World Bank,or group of World Bank - UN specialized institution. Group includes: International Bank for Reconstruction and Development (IBRD) and four branches(International Development Association (Mar), International Finance Corporation (IFC), Multilateral investment guarantee agency (Magicians)and the International Investment Dispute Settlement Center ( MTSU).Location – Washington.
Head structure of the BB Group - IBRD. It was established simultaneously with the IMF on the basis of Brettonvian agreements in 1944, began to function since 1946 the indispensable condition for membership in the IBRD - joining the IMF. The activities of the IBRD and the IMF are mutually linked, they complement each other.
The goal of creating The IBRD was capital accumulation from the global market to finance the economy of Western European countries undermined as a result of the 2nd World War. From the mid-1950s. The IBRD switches to lending to the economy of developing countries. In the 1990s. The object of its activities becomes transitional economies. Russia - Member of the IBRD since 1992
The main activities of the IBRD:
1) investment activities in developing countries on a wide range of directions (health, education and environment, infrastructure, structural economic reforms);
2) analytical and advisory activities on economic issues;
3) mediation in the redistribution of resources between rich and poor countries.
MBRD provides long-term loans (15-20 years) both stabilization and structural (for the implementation of programs aimed at structural reforms in the economy).
First regional development bankswere created in the 60s. in Latin America (Inter-American Development Bank - MABR), Africa (African Development Bank - AFBR), Asia (Asian Development Bank - Azbr). Main goals of their creation -long-term lending to projects for the development of relevant regions (infrastructure projects, project development projects of mining and manufacturing industries).
In 1990, was established European Bank for Reconstruction and Development (EBRD).Location - London. the main objectiveThe EBRD is to promote the transition of countries in Central and Eastern Europe, including the CIS, to a market economy, the development of a private entrepreneurial initiative and promoting investments in the region.
The main objects of lending EBRD: private firms or privatized state-owned enterprises, newly created companies, including joint ventures involving foreign capital. The EBRD cooperates with other investors and creditors in providing loans and guarantees and investing funds to share capital.
The main inferences of the EBRD activities:
1) Financial, banking sectors, energy, telecommunication infrastructure, transport, agriculture;
2) support for small businesses;
3) advisory services in the development of development programs;
4) promoting the privatization of enterprises, their structural
perestroika and modernization.
European Central Bank (ECB) - Nadnodal Central Bank.It occupies a leading position in the structure of institutions responsible for maintaining the sustainability of the euro and the general macroeconomic balance in the European Union (EU).
ECB and 12 central banks of the eurozone countries form Eurosista.Eurosystem led by the ECB:
1) carries out the emission of a single European currency;
2) develops and is responsible for the implementation of a single monetary (monetary and currency) policy (determining target price guidelines and money mass, establishing refinancing rate);
3) Determines the limit budget deficit And imposes sanctions to the participating countries, exceeding it.
In accordance with the Maastricht Treaty, it was created and began to operate from January 1, 1999. European system of central banks (ESSB),which consists of the ECB and the central banks of the EU member states.
the main goalthe creation of the ESSB - assistance to the general economic Policy EU. This goal determines tasks ESSB:
storage and management of official reserves foreign currency Member States;
promoting Unified Functioning payment system mutual wholesale calculations in real time (target);
promoting the effective implementation of oversight of the activities of financial and credit institutions.
