Year of Graduation
Modelling the Factors which are Indicators of Licenses' Revocation of Russian Banks
The Russian banking system has undergone serious shocks over the past five years, particularly in the mass revocation of licenses from various banks. This raises the question of the possibility of predicting and preventing such massive collapses based on key indicators that have the greatest impact on the stability of banks. Existing methods of assessing the financial stability of banks are clearly not able to provide sufficient information on the basis of which it will be possible to take certain actions with respect to banks. Firstly, it is needed to identify which parameters have the most influence and for what types of banks. So, this paper proposes a consistent analysis of the Russian banking system and reveal the factors that destabilized a huge number of its banks. In order to achieve this several binary models are used. Practical part of the study is based on the data with the main financial indicators of banks whose licenses were revoked in the period from 2014 to 2017. Also all the sample has been thoroughly analyzed and filtered and then various types of econometric models are applied. Thus, the results include the predominance of influence of factors related to the execution of Central Bank’s standards and the volume of loans issued.