Bank capital during the economic growth and recession: the changes and management

Bank capital is the most important institutional component of the national financial capital. It is vulnerable to the systemic stress because of its innate controversy. Its high dynamics contributes to the accumulation of risks during the economic growth, while in a recession the risks threaten to collapse the banking system. The failure results in significant losses for corporations in all sectors of the economy due to the interdependence of capitals. Therefore, regular monitoring of parameters for the bank capital is necessary to adjust its development strategy in a crisis.