Development monetary relations And their regulation: In the search for new models

CONTENT

 

THE DEVELOPMENT OF CREDIT RELATIONS IN THE MODERN WORLD

10

Larisa S. Aleksandrova

Associate professor, Department of Monetary and Credit relations and Monetary Policy, Financial University under the Government of the Russian Federation, Moscow (E–mail: als.007@yandex.ru)

Credit bureau: Russia and foreign experience

Abstract

Rationale Due to the development of the Russian financial market special relevance is gained by the analysis of its new structural elements development including the credit bureau.

Objectives During the current research the economic and social factors of credit bureau have been studied as well as the foreign experience of credit bureau development has been analyzed.

Methodology During the current research the scientific methods of theoretical analysis and synthesis, induction and deduction, comparison and classification have been employed.

Results The functional and institutional structures of the credit Bureau have been analyzed and the foreign experience credit Bureau has been considered. Also, it is proved that the introduction of credit reference bureaus and obligatory cooperation of credit organizations with them is connected with the necessity to improve the situation with borrowers’ bankruptcy.

Conclusions and Relevance The analysis of economic and regulatory aspects of the Russian credit bureau has been conducted. Various aspects of credit bureau activity have been also analyzed and the advantages of credit Bureau on the financial market have been defined.

JEL: G01, G20, G21, G23

Keywords: credit bureaus, credit history, principles, regulation, infrastructure

10

Mariya P. Kletanina

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: mkletanina@mail.ru)

Irina S. Syzonenko

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: ira.syzonenko@mail.ru)

Mortgage in Russia: problems and prospects

Abstract

Rationale In the present time the mortgage institution appears to be the main way to solve the housing problem and to acquire the real estate. In the context of the urgency of the topic the problems and prospects of mortgage institution in Russia was chosen as the subject of the work.

Objectives The main goals of the conducted research were to investigate the development of mortgage in Russia, to analyze two existing ways of payment and to the most attractive one as well as to forecast the growth of the market to the nearest future.

Methodology During the current research such scientific methods as theoretical analysis and synthesis, induction and deduction, comparison and classification have been employed.

Results The analysis of the underlying reasons of the mortgage downfall in 2016 has been conducted. The differentiate way of payment has been defined as the most customer attractive one. The forecast of the mortgage development for 2017 and 2020 has been made. The ways of mortgage institution development stimulation have been analyzed.

Conclusions and Relevance The special aspects of the mortgage institutuion development process for the period to 2020 have been reviewed. Two existing ways of payment have been analyzed. It is concluded that the mortgage institutuion stimulates the social development being one of the factors of the middle class formation. The more the demand for the mortgage is, the better the industry works. Consequently, development of the mortgage leads to the national economic development in general.

Keywords: mortgage loan, differential payment, annuity payment, mortgage lending

JEL: G21

20

Polina V. Barskaya

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: barskaya_polina@mail.ru)

Ol'ga V. Ravcheeva

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: olya–rav@list.ru)

The development of credit relationships in modern Russia: problems and solutions

Abstract

Rationale In the context of the credit relationships development and instable global business climate affecting the lending sector of the Russian economy, the development of the credit relations as an element of independent and stable credit system of Russian economy becomes an urgent issue for all the researchers and economists.

Objectives The main goal of the work was to analyze the credit relationships in Russia and develop on the analyze basis the ways to solve the detected problems. In or der to achieve theis goal the following objectives have been attained: the research of credit relationships of both the Central Bank of Russia and commercial banks has been conducted; the problems in these credit relationships have been educed; the possible perspectives stabilizing the lending sphere have been suggested.

Methodology Withinh the present research by using econometric methods the authors have analyzed the main indexes of credit sector and have also determined its’ current tendencies and special aspects.

Results As a result of the complex research of credit relationships on government and commercial levels, the authors give their own estimate of tendencies and prospects of credit relationships of the Central Bank of Russia and commercial banks and formulate possible goals for the future development of lending in Russia.

Conclusions and Relevance It is concluded that it is necessary to continue the work in the direction of inflation targeting regime rework, increasing the trust of the private sector to credit, decreasing the possibility of bankrupting and extending investment flows through the industrial policy into the lending factor.

Keywords: inflation, monetary policy, licensing, money supply, depository institutions

JEL: E31, E52, D45, E51, G52

29

Adiya. Bayarmaa

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: nyamaaadiya@yahoo.com)

Development of regional banking sector

Abstract

Rationale Due to the negative effects of western economic sanctions imposed on Russian Federation and economic recession the regional banking sector is going through hard times, which at different economic levels (federal, regional, municipal) have acquired high importance in the last few years.

Objectives The mail goal of this work was to identify the main problems inhibiting development of the regional banking sector and the extension of their possible solutions.

Methodology Within the conducted research various aspects of banking on the regional level have been analyzed as well as the main shortcomings that impede the further development of regional banks have been identified by using the latest statistical data.

Results As a result the following shortcomings of the regional banking sector analysis have been revealed: uneven distribution of bank capital among the Russian regions, the predominant concentration of banking capital in the Central Federal District (CFD) and an insufficient number of bank branches providing services to the people in remote regions.

Conclusions and Relevance It has been concluded that during the ongoing economic crisis the development of the regional banking sector can resolve such problems as the strong differences existence between the levels of economic development of Russian regions and obtains the high potential to become the most sustainable measure to attract additional financial resources for regional development investment.

JEL: E22, G01, G14, G17

Keywords: regional banks, branches, liquidity, bank assets

37

Yuliya A. Andreeva

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: ulia9604@mail.ru)

Credit reference bureaus: reasons of the introduction and first results

Abstract

Rationale Obtaining the reliable and exhaustive information about the borrower appears to be an urgent matter for credit organization. In this regard the problem of improvement of the decision-making mechanism connected with a borrower creditworthiness assessment is especially vexed. One of the ways to solve this problem is accumulation of information about the borrower servicing their loans in certain organizations (credit reference bureaus).

Objectives The main goal of the conducted research was to examine one of borrower paying capacity assessment ways and to analyze the methods of credit organizations cooperation with the credit bureaus. The main objectives of this paper include definition of the reasons of attraction of credit reference bureaus by credit organization in the Russian Federation, study the peculiarities of the credit bureau activity mechanisms, estimation of the influence of introduction of a legal duty of mandatory credit organization cooperation with credit reference bureaus on quantity of the non–performing loans in the Russian Federation.

Methodology In the present paper the reasons of credit reference bureaus establishment in the Russian Federation have been analysed as well as the mechanism of their activity has been considered and its influence on a situation on the credit market has been estimated.

Results The introduction of credit reference bureaus and obligatory cooperation of credit organizations with them are both connected with the necessity to improve the situation connected with borrowers bankruptcy. The analysis has shown that in case of credit organizations (in particular, banks) and the credit bureau bilateral cooperation establishment the quantity of the non–performing loans has increased slightly and in some cases the reduction of quantity of the sub–prime loans has been noticed.

Conclusions and Relevance It is concluded that nowadays the credit history plays the most significant role in the course of credit scoring. The role of this factor is much more powerful than, for instance, a high salary which was decisive factor at credit arrangements earlier. Thus the modern credit reference bureaus’ role in credit process has increased significantly, especially in the conditions of high rates of consumer crediting and usage of scoring models of a borrower creditworthiness assessment today.

Keywords: credit market, creditworthiness, credit bureaus

JEL: F65, G21, G28, G38

44

Natalia А. Sidorova

4th year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E-mail: nata18041994@mail.ru)

Problems of development of factoring market in Russia and ways of their solution

Abstract

Rationale In connection with the world economic crisis, on the Russian market of factoring services the exacerbation of problems and contradictions, which require certain actions and decisions in the near future, is noticed.

Objectives The main goals of the conducted research were to analyze the factoring market in Russia, study of major problems in this sphere and development of certain ways of their decision.

Methodology By the usage of such scientific methods as analysis and synthesis of statistical data the Russian market of factoring services has been investigated, its most important problems have been mentioned and possible solutions to these problems have been formulated through the logical conclusion.

Results The analysis of the market factoring services in Russia has been conducted.

Conclusions and Relevance It has been concluded that at the present stage of economic development in conditions of the crisis the main problem holding back the development of the Russian factoring services market is the problem of its oversaturation. In order to solve this problem it is necessary to develop the market in the following directions of carrying out the regional expansion, establishment of a legal framework for the implementation of factoring transactions in the market of public procurement and the SME’s market expansion for the factoring services.

Keywords: factoring, dynamics, expansion, dumping, the Association of factoring companies

48

Svetlana A. Evstefeeva

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E–mail: s.evst969@mail.ru)

Sergei S. Shcherbakov

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E–mail: shcherbakovs.s@yandex.ru)

Analysis of credit and investment potential of the Russian federation

Abstract

Rationale The article deals with the identification and analysis of the primary factors influencing the potential of credit–investment resources of the Russian banking system. The structure of determinants and their interactions, which is based on the analysis of the elements of banking passives (assets) of the banking system and includes a number of fundamental areas to enhance the capabilities of the banking system, has been reviewed.

Objectives The main goal of this work was to analyse of credit and investment potential of Russia as well as the institutional structure of the banking sector. In order to reflect the trends of the credit institution development and to propose some solutions to existing problems.

Methodology Within the current research various aspects of credit and investment potential of the Russian Federation the main trends in modern banking sector, quantitative and qualitative indicators of credit institutions have been analyzed by using analytical methods.

Results The result of this work is the analysis of the main indicators of the potential of the Russian Federation in lending and investment aspect. As an instance the study of current trends in the sector of credit institutions, such as the dependence of profit of banks from their reserves on possible losses, a review of the resources of banks and the assessment of profitability of their assets and liabilities could be mentioned. In the article the questions of changing the state of the national financial market and its impact on the international reserves of Russiahave been studied.

Conclusions and Relevance It is concluded that at the present time Russia appears to be in a streching position which is caused by numerous external and internal factors affecting the development of the country. In conclusion the solutions to existing problems have been provided.

Keywords: banking sector, sources of funding, credit institutions, institutional structure

JEL: G21, G29, E51, G23

58

Evgenia I. Kulaeva

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: eugenia.kulaeva@yandex.ru)

Elena V. Poddubnaya

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: advokat96@bk.ru)

Mortgage credit in Russia: current state

Abstract

Rationale In the modern world the mortgage credit lending appears to be a developed institution which is valuably used in entire countries with a stable market economy being a necessary and obligatory institute that is used by the state in the process of the economic and social politics conducted. At the similar time the problem of housing of citizens of Russian Federation remains one of the most important for the state.

Objectives The main goal of the conducted research was the analysis of basic tendencies in the sphere of the mortgage crediting made on the national examples for the exposure of actual problems and prospects of the mortgage crediting sphere development in Russia. The comparative analysis of the mortgage programs of Sberbank of Russia, VTB, Rossel’khozbank, Al’fa–bank and Gazprombank has been conducted as well as the favorable mortgage institution in Russian Federation has been studied. The methods of solving the major problems of the mortgage credit institution in Russia have been proposed and the prospects of their implementation have been estimated.

Methodology The system approach and scientific methods of analysis and synthesis, comparison, groupment and generalization have been employed during the current research.


Results
The most advantageous and competitive terms of mortgage crediting are given by the Gazprombank, Rossel’khozbank and Sberbank of Russia. Three types of favourable mortgage products are playing very important role in this sphere: favourable crediting of workers of budgetary sphere and young families as well as the subsidy assistance to the young researchers. It is proposed to use the grants for the peasant farm enteprises.

Conclusions and Relevance Despite having the general positive progress of the mortgage crediting in Russia and realization of plenty mortgage programs, at the present time several problems of functioning of mortgage market in Russia still exist. It is proposed to prolong the government help for the favorable mortgage crediting. That will positively affect the construction industry of national economy, which will allow to increase the GDP and standard of living of population of Russia in the nearest future.

Keywords: mortgage crediting, commercial jars, program of crediting, Russia, gross domestic product, market of the mortgage crediting

64

Anna V. Egunova

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (Email: 0975368@mail.ru)

lending to small business in Russia

Abstract

Rationale An adequate financing of the small and medium business appears to be a key factor in the effective development of this segment of the national economy. One of the most important types of such a financing is using the money borrowed by commercial banks. Despite the fact that the small and medium business lending comes out as the promising and profitable activity direction for the commercial banks there are still several significant problems in this sphere.

Objectives: The main goal of the present paper was to analyze the ways of development of small and medium business lending sector in Russia.

Methodology During the current research such scientific mehods as theoretical analysis and synthesis, comparison and classification have been employed.

Results: Several paths of development of small and medium–sized businesses lending sector have been identified and a number of changes to existing legislation has been noticed.

Conclusions and Relevance: A study of the problems of participation in lending to small and medium–sized businesses has been conducted as well as the small and medium business lending institution has been alalyzed in the context of banks and regions. The improvement methods and measures for the studied sector development have been proposed and several amendments to existing legislation have been proved.

Keywords: lending to small and medium business

JEL: Е 51

71

THE CREDIT SYSTEM OF THE STATE

83

Natalia E. Sokolinskaya

PhD in Economics, Professor, Department of Banking and Bank Management, Financial University under the Government of the Russian Federation, Moscow (E–mail: profsokn@rambler.ru)

The development of methods of credit risk assessment in the context of the recommendations of the Basel committee

Abstract 

Rationale The article presents the features of credit risk assessment methods development in the context of the Basel Committee recomendations in Russia in conditions of uncertainty and crisis phenomena in the Russian economy.

Оbjectives The main goals of the conducted research were to show both the diversity of the emerging trends in the methods of credit risks assessmenrt development and ways to overcome the negative effects and disadvantages of the individual credit risk calculation methods as well as to identify positive and negative aspects of the joint work of the Basel Committee and the CBR.

Methodology The methods of analysis and synthesis, induction and deduction, method of comparison, system analysis, sample survey, data statistics have been employed within the present research.

Conclusion and Relevance The analysis has shown the process of complicacy of the stages of the Bank credit risks assessment evolution in the context of the recommendations of the Basel Committee: from methods of risks identification to their measurement and evaluation; from risk control at regulatory level to risk management at the level of individual credit institutions: from the correction of capital on the risk weighted assets to complex methods of correlation of credit risk and capital at the level of both the bank and individual groups of credit operations. All the methods of the credit risks assessment have been considered in the article from the positive and negative sides. But in context of the uncertainty of the modern phase of economic development, increase of credit risk level and corresponding tightening of the regulatory requirements the prospects of credit risk assessment methods development ssem to be based on the development of new sophisticated mathematical models taking into account all influencing risks and both financial and non-financial factors of the bank’s capital formation. The further development of credit risk assessment methods should be conducted in the direction of the current complexity even possibly daily assessment of credit risks for individual divisions of the Bank (types of credit) with access to integrated YAR on all credit portfolios and other portfolios which are subject to credit risk.

Keywords: GDP, outstanding debt, credit risk, financial credit instruments, mathematical models, correlation risk countercyclical capital buffer, buffer preservation.

JEL: G21

83

Elena A. Vladimirova

a postgraduate student of Monetary Credit Relation and Monetary Policy Department, Financial University under the Government of the Russian Federation (E-mail: lenavldm@gmail.com)

The interrelations of macro- and microprudencial approaches within the financial stability regulation of the banking system of Russia

Abstract

In article the correlation macro – and microprudential approaches within regulation of banking system stability is considered. Approaches of selection of instruments of macroprudential regulation taking into account recommendations (innovations) Basel III and makoprudentsialny approaches are estimated. The author provides the recommendation at enhancing of the methodology of micro- and macroprudential approaches within regulation in Russian banking sector.

Keywords: Banking system, macroprudential regulation, Basel III, macro – and micro approaches to regulation, instruments of macroprudential regulation.

JEL: G01, G20, G21, G23

96

Ekaterina A. Kolganova

undergraduate student, Faculty of Lending and Economics, the Financial University under the Government of the Russian Federation, Moscow (Email: katja596@yandex.ru)

Lusine H. Chitchyan

undergraduate student, Faculty of Lending and Economics, the Financial University under the Government of the Russian Federation, Moscow (Email: lusinechitchyan1@gmail.ru)

How many banks does the Russian banking system need?

Abstract:

This article deals with the current status of the Russian banking sector and identifies an optimal quantity of banks in our country. Analyzing the structure of Russian banking system the reasons for of commercial banks closure have been defined and also an overview of the German banking sector and its main features has been done in order to determine the optimal number of banking organizations. As a result of analysis, it has been concluded that the economists dealing with complicated question about the quantity of banks have to take the level of national economy development and the its legal framework status into account and proceed not from the quantitative but the qualitative indicators.

Keywords: banking system, commercial banks, Bank of Russia, withdrawal of the licence.

JEL: E42

103

Anastasia V. Zhurba

undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E–mail: zhur6a.ru)

Stress testing for systemically important banks. The need to apply. basic model

Abstract

Rationale Despite the fact that systemically important banks belong to the «too big to fail» category (too large to suffer bankruptcy), most of them have suffered considerable losses which appeared as a consequence of the crisis. The necessity to find new tools, methods and techniques, from which will depend on not only the financial situation of systemically important banks, but the entire stability of the financial system as a whole, seems to become a genuine concern.

Objectives The main goal of the conducted research was to study the international experience of regulation and supervision of systemically important banks as well as the consideration of complex econometric models used in other countries.

Methodology Such scientific methods as theoretical analysis and synthesis, induction and deduction, comparison and classification have been employed within the current research.

Results The study of methods and techniques used by the Central Bank with respect to systemically important banks has been conducted as well as the analysis of the models used in the foreign experience has been made.

Conclusions and Relevance The analysis of the stress test content of foreign countries has been conducted and different models of factors affecting systemically important banks have been analyzed. The advantages and disadvantages of the models have been defined and reflected.

Keywords: systemically important banks, stress–testing models, stress–testing

JEL: E5, E58

110

Aleksandra S. Bershakova

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E–mail: sasha.bershakova@mail.ru)

Maria S. Pleskushkina

2nd year undergraduate student, Faculty of Lending and Economics, Financial University under the Government of the Russian Federation, Moscow (E–mail: mariapleskushkina@gmail.com)

The remote bank service as an effective model of monetary relations development

Abstract

Rationale The article deals with the features of remote banking services development (particularly Internet banking) and its impact on the formation of monetary relations.

Objectives The main goal of the conducted research was to determine advantages and problems of the Internet–banking system usage from the point of view of the credit organizations and their clients. The main objective was to analyze the implementation of innovative technologies in Internet-banking and its impact on the development of monetary relations

Methodology Based on the analysis of information services in the banking sector, the key areas of information technology in banking activities have been considered, in particular, trends in online banking using customer value management have been studied. Tendencies of the Internet–banking development in system of commercial banks have been investigated as well as the prospects of the distance banking services development in Russia have been analyzed. The potential of the internet banking development using the personal financial management has been determined. The bank activities on the abovementioned service system application have been studied through the example of the URALSIB bank.

Results The usage of distance bank service technologies appears to be profitable for credit institutions because it allows both to expand the customer base and to reduce costs. As a result, the demand on the remote banking services will grow.

Conclusion and Relevance It has been concluded that the distance customer service is one of the most important bank activity directions which provides the possibility of costs decreasing and having more competitive advantages. Conclusions have been drawn and actions for introduction and the measures on improvement of bank work with clients have been offered.

Keywords: bank information technology, remote bank service, internet banking, Customer Value Management, personal finance management

JEL: E42, E59, G21, G31

120

Alisiya S. S. Maksimen

undergraduate student, Financial University under the Government of RussianFederation, Moscow (E–mail: aliska–max@mail.ru)

Anna D. Samarkina

undergraduate student, Financial University under the Government of Russian Federation, Moscow (E–mail: samarkina.anna@yandex.ru)

Pawnshops as participants of monetary system

Abstract

Rationale The state and the problems of development of the market of pawnshop’s services in Russia in terms of megaregulation appear to be a pressing issue for the modern economy. Due to the recent transfer of the authorities for the pawnshop activity supervision to the Central Bank, the operating environment of them has changed. Thus, this topic seems to be very relevant for the present time.

Objectives The main goals of the conducted research were to study the features of the pawnshops activity and also to consider the activities of the Central Bank as a megaregulator in relation to pawnbrokers.

Methodology Within the present research the main indicators of pawnshops activity have been examined by the economic analysis methods and techniques,

Results As an analysis result the weaknesses of the pawnshop market, its trends and its competitive advantages and disadvantages have been identidied.

Conclusions and Relevance The pawnshops market existence is necessary for the national economy because they appear to be more operative credit institutions than banks. In case of immediate need for money, pawnshops allow to get the loan almost instantly. From the point of view of the pawnshops owners this business, despite all the risks, remains attractive to a wide range of investors. The effective work during the first year and financial sustainability has been stated as the main key to success in this business sphere when the pawnshop becomes a stable source of income for its owner.

Keywords: pawnshops, the Central Bank, the portfolio of loans, crisis

JEL: F65, G23, G33, G38

127

Anna B. Bol’shakova

3rd year undergraduate student, the Department of Monetary and Credit Relations and Monetary Policy, Financial University under the Government of the Russian Federation, Moscow (E–mail: bolsh95@mail.ru)

The theoretical and practical aspects of functioning of the Russian lending market

Abstract

Rationale Under conditions of the permanent crisis in the Russian modern economy credit organisations are in the constant process of liquidity search. In connection with the decrease of the public confidence level to the banking system and the implementation of the sanctions against external borrowing of Russian banks the role of the interbank credit market in the redistribution of liquidity increases greatly, which requires the correspondent increase of the effectiveness of its functioning.

Objectives The main goal of this work was to determine the peculiarities and to analyse the current state of the Russian market of interbank lending as well as to identify the problems and prospects of its development.

Methodology The study of the current state of the Russian market of interbank has been conducted on the basis of such scientific methods implementation as analysis and synthesis, induction and deduction, method of graphic interpretation.

Results The organizational basis of the Russian modern market, the forms of interbank credit (loan) provisionas well as the factors influencing the level of market interest rates characterized by the high volatility have been studied as a result of the carried out survey. The increase of the level of interbank loan market members confidence has been determined in the context of the segmentation of the Russian banking sector as the necessary condition of the market development.

Conclusions and Relevance Under the adverse economic conditions, the role of the interbank loan market in the process of the liquidity redistribution between banks is considerably strengthening, which requires the increase of its functioning effectiveness.

Keywords: interbank lending market, the banking system, the banks’ liquidity, interest rates

JEL: E43, E50, E59, G21

133

Irina E. Shaker

PhD in Economics, Assistant Professor, Department of Monetary and Credit relations and Monetary Policy, Financial University under the Government of Russian Federation, Moscow (Email: ish7@bk.ru)

Temirkan S. Khuranov

postgraduate student, Department of Monetary and Credit relations and Monetary Policy, Financial University under the Government of Russian Federation, Moscow Russian Federation (Email:tkhuranov@gmail.com)

Theoretical bases and features of regulation of systemic risk in the banking sphere

Abstract

Rationale Regulation of systemic risks in the banking sphere in the context of financial and economic instability assumes a high significance especially with a glance to the importance of the banking sector for the national economy and the possible negative effects as a consequence of systemic risks realization.

Objectives The main goal of the current reseach was the analysis of the existing international and Russian theoretical approaches to the definition of “systemic risk” as well as the study of practical experience in system risks assessment, measurement and management in the banking sphere.

Methodology The study of foreign and Russian scientific literature and regulatory base in the field of systemic risk regulation in the banking sphere. The international experience and methods of regulation of systemic risk have also been studied. Results Information about the current scrutiny of the concept of “systemic risk” has been obtained as well as the information about practical approaches regulation of systemic risk has been gathered. A comparison and analysis of such information have been made.

Conclusions and Relevance It has been concluded that both the unified approach to the definition of ‘systemic risk’ and to systemic risk regulation have not been developed. Also the extremely low level of description and reflection of systemic risks problem in the Russian regulatory base has been determined.

Keywords: systemic risk, theoretical definition, regulation

JEL: E42, E52, E58

140

Irina V. Osipova

PhD in Technical Sciences, Associate Professor, Professor of the Department Accounting in Financial-credit and Non-profit Organizations, Financial University under the Government of the Russian Federation, Moscow (Email: i.v.osipova@mail.ru)

Problems of transformation of financial statements insurance companies in accordance with IFRS

Abstract

The subject / topic With the introduction of the Federal Law “On Consolidated Financial Statements» № 208-FZ of 27.07.2010 insurance companies are required to prepare IFRS financial statements. This federal law established a mandatory formation of the consolidated financial statements for the organizations which should be defined as a group in accordance with IFRS. For the preparation and formation of the consolidated financial statements (RPO) in accordance with IFRS Russian insurance companies are employing two methods at the moment, including the conversion and transformation of the currently which are used in most of cases. But there is also a third version of the financial reporting transformation in the form of the broadcasting method. This article deals with the advantages and disadvantages of these methods and also models of conversion and transformation and their application conditions are considered.

Goals / objectives The main goal of the conducted research was to consider the problems occur during the transformation of insurance companies financial statements as well as to identify the impact of the insurance activities specifics on the procedures of formation and transformation of the RPO.

Methods The paper analyzes the advantages and disadvantages of parallel accounting methods, transformation and translation in order to provide the preparation of the financial statements in accordance with IFRS, as well as the existing RAS and IFRS for the financial reporting transformation and preparation, including the RPO for insurance companies.

Conclusions and Relevance At the present time due to the lack of a uniform methodology for the financial statements transformation, the formation of insurance companies financial reporting is implemented individually in very case, which inevitably leads to the transformation problems of subjective estimates, the risk of false or incomplete information reflection in the reporting and its uniform presentation reduction.

Keywords: insurance companies (companies), consolidated financial statements, transformation, conversion, translation, regulatory and legislative regulation, RAS, IAS, stages and challenges of transformation.

JEL classification: G22, G34, K22, K23

147

Lyudmila M.Kupriyanova

PhD in Economics, Associate professor, Department of Economic Analysis, Financial University under the Government of the Russian Federation, Moscow (Е-mail: KuprianovaLM@yandex.ru)

Irina V. Osipova

PhD in Technical Sciences, Associate Professor, Professor of the Department Accounting in Financial-credit and Non-profit Organizations, Financial University under the Government of the Russian Federation, Moscow (Email: i.v.osipova@mail.ru)

Functions of the consolidated financial statements insurer

Abstract.

The subject / topic. Federal Law “On Consolidated Financial Statements» № 208-FZ of 27.07.2010 year insurance companies are required to prepare IFRS financial statements. The article deals with the function of financial reporting, including consolidated, for an understanding of their role in business development, accounting and analytical work.

Goals / objectives. The main goals of the conducted research were to review and analyze the functions of the financial statements, including the consolidated financial statements of insurance companies, to present their characteristics in the context of interested users, to disclose material information on the consolidated balance sheet of the insurer and the consolidated statement of income and other comprehensive income of the insurer, to justify the necessity of the new accounting policies disclosure: reserves, risks, availability of contingent assets and liabilities, disclosure of going concern assumptions to reduce the risk of bankruptcy.

Methods. Scientific methods employed within the conducted research were aimed at identifying and studying the interrelationship between the various indexes of the organization included in the financial statements and the components of an information base for the evaluation of business development. The basic requirements for financial reporting and its functions for the purposes of analysis and objective assessment of the business in accordance with IFRS and RAS, which determines the need for financial monitoring, in which certain functions are implemented have been considered and analyzed. On example of the current group of insurance companies called OJSC IC “Alliance” the two most important forms of financial statements, namely the consolidated balance sheet of the insurer and the consolidated statement of income and other comprehensive income have been studied and the disadvantages of financial and economic activities of the Group have been revealed as well as some of the causes of these shortcomings have been established.

Conclusions and Relevance. As a result of the conducted scientific research the function of financial statements and their effect on the quality of management and the investment attractiveness of the organization has been proved. It has been found that the purpose of financial reporting and validation functions of the financial statements by management require reconsideration and there is a need for complement and justification of the new financial reporting features and its presentation methods valuation in accordance to IFRS.

Keywords: consolidated financial statements of insurance companies, financial reporting function, the insurer’s consolidated balance sheet, consolidated statement of income and other comprehensive income, methods of analysis of the financial statements.

JEL: G22, G34, K22, K23

157