Competitiveness of Banks in Terms of Financial Stability: Technologies and Innovations

Abstract

In the article, the authors have analyzed how the regulator’s revocation of bank licenses influences the formation of the standard for the competitiveness of Russian lending institutions in terms of financial stability. The analysis has shown ambiguous results concerning the influence of the regulator’s rehabilitation policy on the equilibrium of cash flows at commercial banks as the main indicator of their financial stability. The authors have studied methods related to the calculation of a bank’s competitiveness standard in terms of their financial stability and have drawn conclusions about the use of the most suitable one. The authors have proposed to improve the formula used in calculating the standard of the competitiveness of banks in terms of their financial stability by integrating two methods (parametric and index). This will make it possible to monitor on a broader basis the financial stability of banks, to calculate the standard of the competitiveness of banks in terms of financial stability more accurately and to make wider use of adjustment factors and indices for the calculation of such a standard.