Selezneva N.A.Institute of Economics of Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation nadegda-x@mail.ru
Importance The article analyzes the reliability of commercial banks. It substantiates the need to articulate bank reliability analysis methods, considering their specialization and factors influencing each bank in particular, thus allowing to forecast bank's reliability. Objectives I outline my own methodological approaches to analyzing the reliability of commercial banks. Methods I conducted a vertical analysis of the balance sheet, structure of the statement of the bank's financial results, and public information on banks, i.e. persons who can materially influence the credit institution, information from the Deposit Insurance Agency. Results I identified prevailing items of income, expenses, assets and liabilities and grouped banks per specialization. The article indicates the most significant factors that are individual for each bank, influencing its reliability. As an analysis of banks' operations shows, there may be a variety of banks, methods for construction of assets, liability, income and expenses even if a few banks are considered. Therefore, the reliability of each bank, more or less, depends on various factors or a combination of factors. Conclusions and Relevance When outlining methods for analyzing the bank's reliability, it is critical to embed the possibility of considering the specifics of each bank. The findings can come in handy for clients, bank managers, and supervisory bodies.
Keywords: commercial bank, reliability, analysis, specialization, factors
References:
Zuev R.Yu., Leiman T.I. [The Russian practice of ranking commercial banks' reliability]. Nauchnoe soobshchestvo studentov XXI stoletiya. Ekonomicheskie nauki: materialy XXVI studencheskoi mezhdunarodnoi zaochnoi nauchno-prakticheskoi konferentsii [Proc. 26th Sci. Conf. Scientific Community of Students in the 21st Century. Economic Sciences]. Novosibirsk, SibAK Publ., 2014, no. 11, pp. 176–188. Available at: Link.pdf.
Oniskiv L.M. [Methods for assessing commercial banks' reliability]. Nauka i biznes: puti razvitiya = Science and Business: Ways of Development, 2014, no. 3, pp. 53–56. (In Russ.)
Novosel'skaya N.A., Ksenofontova O.L. [Methods of factor analysis of commercial bank profit]. Uspekhi sovremennogo estestvoznaniya = Advances in Current Natural Sciences, 2012, no. 4, pp. 81–83. (In Russ.)
Potemkin S.A., Larina T.A. [Analyzing methods for evaluation of banks with multiple branches]. Prikladnaya informatika = Applied Informatics, 2009, no. 3, pp. 100–104. (In Russ.)
Sysoeva E.F., Kretova N.A. [Evaluating the sustainability and reliability of the commercial bank in the competitive environment]. Vestnik Voronezhskogo gosudarstvennogo universiteta = Proceedings of Voronezh State University, 2011, no. 2, pp. 219–226. (In Russ.)
Zaitseva A.E. [Application of the alternative method (Kromonov method) to evaluate the financial reliability of Pervomaiskii Bank]. Vestnik IMSIT = Bulletin of IMSIT, 2015, no. 1, pp. 44–46. (In Russ.)
Klaas Ya.A. [Comparative analysis of foreign methods for assessing the financial sustainability of the commercial bank]. Vestnik TISBI = Bulletin of TISBI, 2012, no. 4, pp. 163–169. (In Russ.)
Anikina I.D., Tolstel' M.S., Gukova A.V., Kirov A.V., Godzhaeva E.S. [Reliability indicators of the commercial bank during economic instability]. Sovremennye problemy nauki i obrazovaniya, 2015, no. 1, part 1, p. 774. (In Russ.) Available at: Link.
Idrisova Z.N., Sattarova A.R. [Cluster analysis as a tool for integral evaluation of commercial banks]. Vestnik Chelyabinskogo gosudarstvennogo universiteta = Bulletin of Chelyabinsk State University, 2010, no. 14, pp. 115–121. (In Russ.)
Kondratenko N.A. [Forecasting macroeconomic indicators of the Russian banking system]. Ekonomika i upravlenie = Economics and Management, 2012, no. 3, pp. 70–73. (In Russ.)
Blagodatskikh I.V. [Analyzing factors that influence the commercial bank's sustainability]. Aktual'nye voprosy sovremennoi nauki = Current Issues of Modern Science, 2010, no. 12, pp. 290–293. (In Russ.)
Pautinka T.I., Savenko T.A. [Sustainability factors of the regional banking system]. Aprobatsiya = Approbation, 2014, no. 8, pp. 123–126. (In Russ.)
Popova V.P. [Measurement of the commercial bank's assets in terms of macroeconomic factors and sustainability of the banking system]. Vestnik Yuzhno-Rossiiskogo gosudarstvennogo politekhnicheskogo universiteta (NPI) = Bulletin of South-Russian State Technical University, 2014, no. 6, pp. 95–103. (In Russ.)
Radzhabova M.G. [Analyzing the factors of banking environment in the region]. Izvestiya Dagestanskogo gosudarstvennogo pedagogicheskogo universiteta = Proceedings of Dagestan State Pedagogical University, 2011, no. 2, pp. 105–110. (In Russ.)
Bondarenko V.A. [Comprehensive evaluation of the effect of macroeconomic factors on banking]. Vestnik Severo-Kavkazskogo gosudarstvennogo tekhnicheskogo universiteta = Bulletin of North-Caucasus State Technical University, 2012, no. 3, pp. 211–214. (In Russ.)
Guryleva E.K. [Key success factors for banking]. Faktory uspekha: nauchno-prakticheskii zhurnal molodykh uchenykh = Factors of Success: Research and Practice Journal of Young Scientists, 2013, no. 1, pp. 18–20. (In Russ.)
Mikhalev A.S. [Reliability factors for banking]. Problemy bezopasnosti rossiiskogo obshchestva = Security Problems of the Russian Society, 2012, no. 3, pp. 191–197. (In Russ.)
Rocheva M.A. [Sustainability factors of regional banking systems: Evidence from the Ivanovo oblast]. Problemy i perspektivy ekonomiki i upravleniya: materialy mezhdunarodnoi nauchoi konferentsii [Proc. Sci. Conf. Proc. Issues and Prospects of Economy and Management]. St. Petersburg, Renome Publ., 2012, pp. 96–100.
Elliott M., Golub B., Jackson M.O. Financial Networks and Contagion. Available at: Link.
The Network Challenge: Strategy, Profit, and Risk in an Interlinked World. Upper Saddle River, NJ, Pearson Prentice Hall, 2009, 559 p.
