Commercial bank’s anti-crisis management mechanisms for maintaining its financial stability

Abstract

Importance. The emergence of crisis phenomena in the banking sector is natural, as banking activity is carried out under risk conditions, therefore, measures to prevent such phenomena or minimize their negative consequences are also necessary. Anti-crisis management in the banking sector has been developed in many countries since the banking crisis of 2008–2009. In addition to stricter requirements to banks, new mechanisms for maintaining banking sector sustainability and crisis management have been adopted.Objectives. The study is devoted to the analysis of existing crisis management mechanisms in Russian and foreign banks. The consequences of the practice of applying these mechanisms in global practice and opportunities for their improvement and application in Russia are studied too.Methods. In the process of achieving this objective, the methods of scientific knowledge were used: analysis and synthesis, generalization, and description. The research is based on the study and analysisof current scientific and practical materials and economic literature.Conclusions and Relevance. It was concluded that the improvement of procedures of bank rehabilitation and crisis management in the banking sector required the creation of new institutions of the financial market and the possible revision of the existing regulatory framework. The instruments of preventive and reactive anti-crisis management used in the Russian Federation have been identified. Preventive anti-crisis management methods are stress testing, identification of significant risks and creation of internal policy to manage them. Reactive anti-crisis management is represented by the actions of the Fund for Banking Sector Consolidation and the existing precedents of voluntary “rescue” of a number of banks by their main creditors and owners. Also were identifi ed unresolved issues regarding fraud risk management by top management and bank owners, which are one of the possible causes of systemic banking crises.