Capital adequacy assessment and risks of Russian banks in an unstable economic situation

Abstract

A review of the dynamics of the main indicators of Russian banks has been presented, their risks in the context of step-by-step implementation of the recommendations of the international capital adequacy assessment standards in a period of unstable economic situation have been analysed, and also the current level of capital adequacy of banks in order to cover their risks has been evaluated. The problems, with which Russian banks may face in the process offurther transition to international standards for assessing capital adequacy have been designated. Recommendations taking into account the peculiarities of banks functioning in the current conditions, aimed at ensuring the financial stability of the banking business at the level of both the individual Bank and the banking sector as a whole, as well as at limiting the concentration of risks and preventing the emergence of new concomitant or specific risks have been given.

Keywords

• bank capital
• banking regulation
• capital adequacy
• capital buffers
• capital management
• international standards
• regulatory capital
• risks