Banking Sector Asset Concentration Risk

DOI

10.2991/emle-17.2017.4How to use a DOI?

Keywords

banking business; systemic risk; risk sources; risk concentration; group of related borrowers; economic interdependency

Abstract

The subject of the research is the concentration of risks related to active transactions of commercial banks as a factor for systemic risks of the banking sector. The purpose of the research is to work out specific measures to mitigate the banking sector's exposure to systemic risks in view of the analysis of the Russian and international risk concentration mitigation practices. The Russian banking sector remains extremely vulnerable to systemic risks. One of the material sources thereof is the concentration of banking sector assets at both micro- and macro-levels. The statistical data of international organizations suggest that among European countries having reported on such figure Russia is high on the list regarding the risk concentration. The high level of asset concentration in the Russian banking sector requires the analysis and improvement of the existing supervisory practice. This paper suggests improvements for the major risk control: putting in place a risk mitigation practice with account of credit claim quality, as well as the consideration of economic interdependency factor, to identify groups of related contractors.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Irina Larionova
AU  - Elena Meshkova
PY  - 2017/12
DA  - 2017/12
TI  - Banking Sector Asset Concentration Risk
BT  - Proceedings of the 3rd International Conference on Economics, Management, Law and Education (EMLE 2017)
PB  - Atlantis Press
SP  - 14
EP  - 18
SN  - 2352-5428
UR  - https://doi.org/10.2991/emle-17.2017.4
DO  - 10.2991/emle-17.2017.4
ID  - Larionova2017/12
ER  -