Effect of Board Composition on the Financial Stability of the Commercial Bank

The current study is aimed at determining the dependence of the financial stability of a commercial bank on the personal characteristics of its board members, such as gender, age, and shareholding status. The research uses data of 150 commercial banks of Russian Federation from the following resources: Bank of Russia, «SPARK», «Ruslana». The data contains the relevant information about financial indicators of the banks and about their corporate governance from 2013 to 2017 years. The research methodology is based on statistical, financial and regression analysis. In the course of the study, models of the dependence of the financial stability of a bank on factors of corporate governance were derived and the most significant variables were identified. According to the results of the study, it was determined that the gender of the board member is the most significant variable; the increase in the proportion of women is positively correlated with the growth of financial indicators. It was found that the average age has a slight positive effect on the level of bank stability. The study of the influence of the share of shareholders among the board members did not allow one to obtain unambiguous conclusions. The work consists of three chapters. The first chapter reveals the meaning of the concept of financial stability and describes the current state of the Russian banking sector. In the second chapter the works of previous authors are studied to determine the research methodology. In the third chapter the model is constructed and the results of the study are interpreted.