Formation of method for assessing the impact of economic sanctions on the stability of the Russian banking system

Abstract

© 2019, Research Trend. All rights reserved. The article discusses the formation of a methodology for assessing the impact of economic sanctions on the stability of the Russian banking system through the index method, in particular, it proposes a model of the financial stability index of the banking system under the influence of economic sanctions, defines a system of private model indices (capacity index of credit organizations of the Russian Federation, and bank profitability index, an index of their international activity, a competitiveness index of banks from the position of placed and involved funds, index of normative state of the Russian banking sector) and internal indicators characterizing them. This technique has been tested on the example of the banking sector of the Russian Federation from 01.01.2014to 01.01.2019, covering the period of economic sanctions by the United States and the European Union, the financial stability index was also calculated for individual credit institutions under sanctioned pressure (VTB PJSC, Gazprom JSC), and for banks not included in the sanctions list (Alfa Bank JSC, Otkrytie FC PJSC). As a result, it was proved that the impact of economic sanctions on the financial stability of the banking sector of the Russian Federation at present, due to its adaptation to the measures taken by the European Community and the United States, is not significant.