International and Russian practice of banking risk-management. Mortgage risks

Abstract

The goal of the work is to compare Russian norms and standards of risk management of mortgage lending with international standards of risk management based on the documents of the Basel Committee. The article also aims to analyze new banking tools of risk management of mortgage lending, that arise in connection with the application of international norms and standards of risk management. Materials and Methods : The main documents considered in the article are the agreements on capital, issued by the Basel Committee on Banking Supervision: Basel-I (1988), Basel-II (2004) and Basel-III (2010), as well as instructions and standing orders issued by the Central Bank of Russia, including: Instruction № 139-I "Ob obiazatel'nykh normativakh bankov", instruction № 1 "O poriadke regulirovaniia deiatel'nosti kommercheskikh bankov", the standing order number 215-P "O metodike opredeleniia sobstvennykh sredstv (kapitala) kreditnykh organizatsii", the standing order № 395-P "O metodike opredeleniia velichiny sobstvennykh sredstv (kapitala) kreditnykh organizatsii («BAZEL III»)" and others. On the basis of these documents the work examines and summarizes the main methods of risk management of mortgage lending, such as: comparison and analysis of risk management techniques, study of the basic documents regulating risk management in banks and generalization of risk management methods in the segment of mortgage lending. Results: The article analyzes the legal and methodological basis of risk management and provides practical methods that can be used in practice for managerial decisions in a constantly changing external economic environment. It also analyses international and native risk management. Russian standards of risk-management are compared with international. The work conducts a critical review of the effects of introduction of international standards in Russia. Special attention is paid to the practice of mortgage risk-management. The article considers the statistics of the mortgage market of recent years and analyzes the new requirements to the banks, involved in mortgage landing. The work offers some new advanced approaches for risk management of mortgage lending in the Russian banking sector, that improve the reliability of banking operations and increase trust between contractors. Conclusion: In 2016 the Basel Committee concluded that risk management in Russia meets international standards, and some standards imposed in our country are even stricter than required in the last international agreement. However, the accelerated implementation of the new standard in Russia is rather risky. By implementing "Basel 3" in the context of high capital requirements, the Central Bank believes that standards will be acceptable only to the large banks, and for others these requirements will lead to losses. This advanced approaches to risk management also require more careful monitoring. So on the one hand, these banks will be better protected from stock market risks and it will lead to formation of highreliable banking system. But the question is: how this system will develop in the conditions of lack of competition?