THE STATE OF RUSSIAN BANKING SECTOR AND ITS DEVELOPMENT PROSPECTS

  • Anastasia Sergeevna Surudina
Keywords: Keywords: nonperforming loan; types of nonperforming loans; management of nonperforming loans; commercial bank profitability; commercial bank capitalization.

Abstract

Abstract: The paper deals with the actual problems of the Russian banking sector and namely with the importance of non-performing loans within the structure of total assets of the Russian banking sector. The paper reviews the Russian banking system during the crisis of 2015 as well as its fundamental reasons. Moreover, the author identified the interrelation between the macroeconomic indicators and the state of the banking system using the comparative analysis of banking systems of the developed countries during the crisis of 2008. The paper gives the review of a number of works of foreign researchers with the focus on the non-performing assets. In particular, the author studied the works on the Basel Accords implementation both in the EU countries and in Australia, the USA, and a number of countries of Eastern Europe. The analysis of works proved the necessity to carry out the analysis of the existing trends in the Russian banking sector. In this paper, the author determines the main indicators used for the analysis of the state of the banking system, analyzes the dynamic picture and identifies the increase in the share of the troubled assets of the Russian commercial banks. The analysis of the structure of the non-performing loans in terms of the types of business activity has revealed the riskiest areas of crediting, in particular, the wholesaling, construction, etc. Based on the analysis, the author describes the development prospects of the banking sector in terms of the expected growth of banking sector, the indicators of profitability, capitalization, and liquidity of the commercial banks, and the indicators of the banks’ loan portfolios quality.

 

Published
2018-12-21
Section
Economical Sciences