+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

A study into the terminology of financial stability of the commercial bank

Vol. 23, Iss. 36, SEPTEMBER 2017

PDF  Article PDF Version

Received: 21 July 2017

Received in revised form: 4 August 2017

Accepted: 21 August 2017

Available online: 29 September 2017

Subject Heading: Banking

JEL Classification: G20, G21

Pages: 2159–2173

https://doi.org/10.24891/fc.23.36.2159

Klaas Ya.A. Kazan Federal University, Kazan, Republic of Tatarstan, Russian Federation
janaklaas@mail.ru

Subject To adequately assess the financial sustainability of the bank, a modification of the terminological aspect is necessary. Most existing terminology interpretations do not provide a comprehensive view of the bank's sustainability, nor do they indicate the importance of ensuring the bank's sustainability for the country's economy, nor do they take into account modern banking business trends.
Objectives Based on an analysis of the various authors' approaches, the article aims to clear the terms bank stability and financial stability of the bank, as well as determine the stability modes of the bank and criteria of financial stability of the credit institution.
Methods For the study, I used methods of analysis, synthesis, induction and deduction, abstraction and analogy, as well as general scientific approaches, namely, the systems and comprehensive ones.
Results The article identifies the differences between the sustainability, reliability and stability notions and it interprets them. As well, the paper defines the bank stability notion, taking into account the banking activity specific issues, and analyzes the modes of stability of the credit institution and identifies the most significant signs of the bank's financial stability.
Conclusions The article concludes that, for all semantic similarity, the terms sustainable, reliable and stable differ from each other, the specifics of banking activities are taken into account in only a few of the bank's soundness definitions. Given the current trends in banking business, there is a need to complement soundness, and there is still no well-developed definition of financial soundness for commercial banks. As a result of the study, the article suggests that the existing interpretation of the definitions should be modified.

Keywords: bank, sustainability, stability, financial soundness

References:

  1. Lavrushin O.I., Fetisov G.G. [Stability first of all]. Natsional'nyi bankovskii zhurnal = National Banking Journal, 2005, no. 1, pp. 56–60. URL: Link (In Russ.)
  2. Fetisov G.G. Ustoichivost' kommercheskogo banka i reitingovye sistemy ee otsenki [Sustainability of a commercial bank and the rating systems for its evaluation]. Moscow, Finansy i Statistika Publ., 1999, 168 p.
  3. Kornienko Yu.V. [The impact of global processes on the financial soundness of banks]. Vestnik Murmanskogo gosudarstvennogo tekhnicheskogo universiteta = Vestnik of Murmansk State Technical University, 2013, vol. 16, no. 2, pp. 242–247. URL: Link (In Russ.)
  4. Larionova I.V. [Features of ensuring the financial stability of the banking system in conditions of instability of the macroeconomic environment]. Bankovskie uslugi = Banking Services, 2012, no. 12, pp. 2–9. (In Russ.)
  5. Panov D.V. [Banks financial stability: methodological approach]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2008, no. 3, pp.180–200. (In Russ.)
  6. Maslenchenkov Yu.S. Finansovyi menedzhment v kommercheskom banke: fundamental'nyi analiz [Financial management in a commercial bank: A fundamental analysis]. Moscow, Perspektiva Publ., 1996, 192 p.
  7. Zhivalov V.N. [Global volatility and the development of financial services in the regions]. Al'ternativy regional'nogo razvitiya, 2011, no. 2, pp. 367–373. (In Russ.)
  8. Ivanov V.V. Analiz nadezhnosti banka [Bank Reliability Analysis]. Moscow, Russkaya delovaya literatura Publ., 1996, 320 p.
  9. Karimov R.M. [The particulars of the development of the banking sector of Udmurtia]. Den'gi i kredit = Money and Credit, 2009, no. 10, pp. 46–49. (In Russ.)
  10. Tavasiev A.M., Mekhryakov V.D. [Management of the Russian banking sector in the context of the crisis]. Bankovskoe delo = Banking, 2009, no. 5, pp. 36–42. (In Russ.)
  11. Tarkhanova E.A. Ustoichivost' kommercheskikh bankov [Sustainability of commercial banks]. Tyumen, Vektor Buk Publ., 2003, 186 p.
  12. Bobrik M.A. [Models and methods for assessing the financial sustainability of commercial banks]. Bankovskoe delo = Banking, 2013, no. 10, pp. 53–56. (In Russ.)
  13. Gerasimova E.B. [Phenomenological approach to stability analysis of organizations]. Sibirskaya finansovaya shkola = Siberian Financial School, 2011, no. 3, pp. 44–48. (In Russ.)
  14. Timofeeva Z.A. Otsenka finansovoi ustoichivosti kommercheskikh bankov nadzornymi organami: monografiya [Estimation of financial stability of commercial banks by supervisory authorities: a monograph]. Kaliningrad, BIEF Publ., 2003, 240 p.
  15. Zakhar'yan A.G. [Economic content of the integrated sustainability of the commercial bank]. Finansovye issledovaniya = Financial Research, 2003, no. 2, pp. 23–27. URL: Link (In Russ.)
  16. Bogdanova O.M. Kommercheskie banki Rossii: formirovanie uslovii ustoichivogo razvitiya [Commercial banks of Russia: formation of conditions for sustainable development]. Moscow, Finstatinform Publ., 1998, 196 p.
  17. Tikhanin V.B. Monitoring finansovoi ustoichivosti kommercheskogo banka: monografiya [Monitoring of the financial stability of commercial banks: a monograph]. Kazan, KSFEI Publ., 2002, 213 p.
  18. Murav'ev A.K. [On the criteria of financial stability of commercial banks]. Sibirskaya finansovaya shkola = Siberian Financial School, 2006, no. 4, pp. 150–154. (In Russ.)
  19. Gogol' D.A. [A range of problems of financial sustainability of commercial bank and of its evaluation methods]. Vestnik Volgogradskogo gosudarstvennogo universiteta. Seriya 3: Ekonomika. Ekologiya = Science Journal of VolSU. Global Economic System, 2011, no. 2, pp. 163–167. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive