Stress Testing as a Tool for Assessing Systemic Risk of Organizations of the Russian Banking Sector

Abstract

Under the conditions of competition improvement in banking sector, i.a. - on the part of international financial institutions, sophistication of operations and simultaneous access of banks to the instruments of risk hedging the task of building of risk-management system by banks with use of stress-testing becomes specially prioritized and relevant. The current instability on world financial markets being the consequence of global crisis stipulates the necessity for more searching examination and assessment of probable risks. The most important factor stipulating the stability of the commercial bank is being the application of adequate assessment of financial losses under the conditions of market’s instability. This will provide creation of prerequisites for effective control and management of risks in the period of increase of recessionary situation in the Russian economy. The goal of this paper is the conceptual research of stress-testing evolution as the method for assessment of systemic risks in the epoch of financial globalization, and also – the substantiation of recommendations on improvement of the system of practical realization of stress testing method in the framework of counter-cyclic regulation with account of tendencies for development of international banking supervision. The methodological background of research is based on the principles of comparative and system analysis, unity of qualitative and quantitative, historical and logical approach. In the paper the historical background is considered, novations in the area of legislative regulation of banking risks in Russia and abroad are analyzed. In the framework of research the main problems and disadvantages of existing practice of stress testing are defined, the approach of the Bank of Russia to conduction of stress-tests is characterized, the affairs, the implementation of which will help stress testing to take its proper place among the instruments for regulation and supervision of banking system of Russia.

DOI: 10.5901/mjss.2015.v6n3s3p157