Abstract

Integration of banks and insurance companies along with positive effects for the state, clients and shareholders, also brings about specific risks. Functioning of financial institutions is exposed to the influence of external and internal environment, manifested in a number of risks finding the expression in corresponding threats. The article examines the risks of banks and insurance companies’ integration together with the main instruments of their neutralization. The author offers classification of risks of insurance companies and banks integration by its level and develops the tools to prevent and neutralize the risks of integration. The tools to prevent and neutralize the risks of insurance companies and banks integration are as follows: internal risk management; prudential supervision and regulation.

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