Prevention of Bank's Bankruptcy. Analysis of Factors Affecting the Decision to Provide Financial Support

In this work, we consider Russia indicators of commercial banks, influencing the decision to grant financial assistance or revocation of the license. The data retrieval has 187 liquidated banks and 30 rehabilitated. Banks were selected from November 2013, when the license was taken away from the Master-Bank, which launched a "domino effect". Then was built a model based on three groups of factors (specifications of Russian CBR, metafactory(the size of the bank's assets; the ratio of non-performing loans to performing loans) and the macro factors (GDP, inflation)) and detected the most significant among them using the Lasso regularization: the size of the bank's assets, long-term liquidity, to the minimum credit risk (H7) and the maximum possible diversification of the use of the bank's capital for the purchase of shares in other legal entities (H12). The observed results do not contradict earlier researches that confirm their stability and economic feasibility.