Subject. The article addresses the Russian approach to mitigating major banking risks that result from the current global economic recession. Objectives. I focus on the study of the existing system for banking risk regulation in Russia and its potential under the prevailing circumstances. Methods. The study draws on general scientific methods (analysis, synthesis, comparison, comparison, generalization, abstraction) and elements of comparative, economic and statistical, structural-functional analysis. The paper rests on the provisions of Federal laws of the Russian Federation, regulations of the Bank of Russia, and the IMF data. Results. The paper analyzes causes and effects of the aggravation of the main banking risks, defines stages of actions taken by Russian banks to minimize the negative impact of risks, investigates modern methods of quantitative and qualitative assessment of existing risks and possible risk-related financial losses, unveils the pros and cons of certain methods. It presents a detailed description of possible actions on the part of banks' management to respond to emerging risks and mitigate them to acceptable level. Conclusions. To be sustainable, the Russian banking sector should have a strong risk management system, enabling to evaluate and predict changes in the degree of risks and financial losses caused by them.
Keywords: banking risk, banking system, Bank of Russia, economic crisis, risk management
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