Rating Assessment of Financial Stability of Banks

Financial stability can fully reflect the financial position of the bank. To determine the reliability of banks requires an objective assessment of the financial situation, which is systematic. A systematic approach to understanding the financial condition of a bank includes a balanced set of qualitative and quantitative indicators that reflect the efficiency and reliability of the bank, as well as potential risks and risks of bankruptcy. The activity of rating agencies helps investors and lenders make it easier to decide which banking institution to work with. In turn, with the influx of foreign investment in the Russian banking system, increasing competition, banks are forced to use different methods in order to increase their positions in the market and increase their attractiveness for investors. The purpose of this work is to study the theoretical basis of the financial sustainability of banking organizations, rating the banking institutions, determine the most significant factors when rating a rating by building a regressive model.   In the theoretical part, approaches to the definition of the term “financial sustainability” are considered, the work and methodology of rating agencies accredited in the Russian Federation are studied. In many works, the financial stability of an enterprise is considered as such distribution and use of financial resources, in which the operation of an enterprise is ensured under the conditions of growth and development of capital while maintaining solvency with possible risks.   The practical part of the work contains an analysis of indicators of a financially stable commercial bank and the development of the author's model for determining the significant criteria for assessing the financial stability of a bank, which can be used to correctly select a model for assessing financial stability. The results of the constructed model showed that for each rating model for assessing the financial stability of a commercial bank, the following factors are important: the capital adequacy ratio, the level of asset returns, the level of doubtful debt, the refinancing coefficient, the liquidity ratio. If they are present in the model, the model will have a reasonable economic sense.   Information base of the research consists of scientific articles, regulatory documents, materials of the Bank of Russia and other studies published in the domestic and foreign press, as well as analytical reviews of rating agencies that are publicly available on the Internet.