Sources of Regional Banks Capitalization
Searching of sources to increase the capitalization of Russian banks is an important economic problem for both the national and regional economy. Moreover, a strong capital base allows to credit institutions to meet the demands of economic agents for banking service. The research focuses on the choi...
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| Format: | Article |
| Language: | English |
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Russian Academy of Sciences, Institute of Economics of the Ural Branch
2018-03-01
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| Series: | Экономика региона |
| Subjects: | |
| Online Access: | http://economyofregion.com/archive/2018/68/3028/pdf/ |
| _version_ | 1797725205540372480 |
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| author | Olga Sergeevna Miroshnichenko Anna Nikolaevna Tarasova |
| author_facet | Olga Sergeevna Miroshnichenko Anna Nikolaevna Tarasova |
| author_sort | Olga Sergeevna Miroshnichenko |
| collection | DOAJ |
| description | Searching of sources to increase the capitalization of Russian banks is an important economic problem for both the national and regional economy. Moreover, a strong capital base allows to credit institutions to meet the demands of economic agents for banking service. The research focuses on the choice of sources of regulatory capital for the banks of Tyumen region in the context of changing supervisory requirements in the period of 2005–2016, in different phases of the business cycle. We apply econometric methods of statistical information using IBM SPSS Statistics software. We have calculated the individual correlations of regional banks’ capital with gross domestic product (GDP) (excluding gross regional product (GRP)) and GRP (with the exception of the effect of GDP). These calculations have shown that the capital of regional banks is related only to GDP. The increase in the capital of regional banks is accompanied by a change in its structure: the share of authorized capital has halved, and the share of subordinated debt has grown. All sources of capital, other than the reserve fund, are related to GDP. Authorized capital is associated with the profit of profitable lending institutions; retained earnings in the capital of regional banks — with the aggregated amount of risks of the banking system of the Russian Federation. Subordinated debt, like capital as a whole, is negatively affected by the profitability of the banking sector. The change in the capital of regional banks is determined by the change in retained earnings, subordinated debt and reserve fund. Modelling of these relations has allowed to obtain a system of equations. This system synthesizes linear regression models of changing the capital of regional banks in the context of their sourcing. The results of this study are significant for theoretical justification and practical development of a balanced financial policy of regional banks. Our research will contribute to strengthening an adequate capital base as well as to the creation of a system of proportional bank regulation and supervision. |
| first_indexed | 2024-03-12T10:27:48Z |
| format | Article |
| id | doaj.art-6445a4fdf46846ab804fe815aea2a56d |
| institution | Directory Open Access Journal |
| issn | 2072-6414 2411-1406 |
| language | English |
| last_indexed | 2024-03-12T10:27:48Z |
| publishDate | 2018-03-01 |
| publisher | Russian Academy of Sciences, Institute of Economics of the Ural Branch |
| record_format | Article |
| series | Экономика региона |
| spelling | doaj.art-6445a4fdf46846ab804fe815aea2a56d2023-09-02T09:34:05ZengRussian Academy of Sciences, Institute of Economics of the Ural BranchЭкономика региона2072-64142411-14062018-03-0114130331410.17059/2018–1–24Sources of Regional Banks CapitalizationOlga Sergeevna Miroshnichenko0Anna Nikolaevna Tarasova1University of TyumenUniversity of TyumenSearching of sources to increase the capitalization of Russian banks is an important economic problem for both the national and regional economy. Moreover, a strong capital base allows to credit institutions to meet the demands of economic agents for banking service. The research focuses on the choice of sources of regulatory capital for the banks of Tyumen region in the context of changing supervisory requirements in the period of 2005–2016, in different phases of the business cycle. We apply econometric methods of statistical information using IBM SPSS Statistics software. We have calculated the individual correlations of regional banks’ capital with gross domestic product (GDP) (excluding gross regional product (GRP)) and GRP (with the exception of the effect of GDP). These calculations have shown that the capital of regional banks is related only to GDP. The increase in the capital of regional banks is accompanied by a change in its structure: the share of authorized capital has halved, and the share of subordinated debt has grown. All sources of capital, other than the reserve fund, are related to GDP. Authorized capital is associated with the profit of profitable lending institutions; retained earnings in the capital of regional banks — with the aggregated amount of risks of the banking system of the Russian Federation. Subordinated debt, like capital as a whole, is negatively affected by the profitability of the banking sector. The change in the capital of regional banks is determined by the change in retained earnings, subordinated debt and reserve fund. Modelling of these relations has allowed to obtain a system of equations. This system synthesizes linear regression models of changing the capital of regional banks in the context of their sourcing. The results of this study are significant for theoretical justification and practical development of a balanced financial policy of regional banks. Our research will contribute to strengthening an adequate capital base as well as to the creation of a system of proportional bank regulation and supervision.http://economyofregion.com/archive/2018/68/3028/pdf/bank profitabilitybank riskbusiness cyclesproportionate supervisionregulatory capitalcapital adequacyportfolio capitalsubordinated loansbank profitfinancial crisis |
| spellingShingle | Olga Sergeevna Miroshnichenko Anna Nikolaevna Tarasova Sources of Regional Banks Capitalization Экономика региона bank profitability bank risk business cycles proportionate supervision regulatory capital capital adequacy portfolio capital subordinated loans bank profit financial crisis |
| title | Sources of Regional Banks Capitalization |
| title_full | Sources of Regional Banks Capitalization |
| title_fullStr | Sources of Regional Banks Capitalization |
| title_full_unstemmed | Sources of Regional Banks Capitalization |
| title_short | Sources of Regional Banks Capitalization |
| title_sort | sources of regional banks capitalization |
| topic | bank profitability bank risk business cycles proportionate supervision regulatory capital capital adequacy portfolio capital subordinated loans bank profit financial crisis |
| url | http://economyofregion.com/archive/2018/68/3028/pdf/ |
| work_keys_str_mv | AT olgasergeevnamiroshnichenko sourcesofregionalbankscapitalization AT annanikolaevnatarasova sourcesofregionalbankscapitalization |