Indicators and methods for evaluating the financial stability of a commercial bank

The paper considers a risk-based approach to assessing the financial stability of a Russian commercial bank. The introduction of risk management tools is of particular importance in assessing the financial condition of a credit institution. Financial stability is the main integral indicator of credit and investment activity of a banking organization, which allows to increase the validity of risk-based assessments of the effectiveness of this activity. The authors raise the issue of interpreting financial stability and propose a methodology for assessing it, taking into account the peculiarities of the activities of Russian commercial banks of different levels. Due to the lack of uniform requirements for the financial stability of a banking organization, an approach is proposed based on primary and generalized financial reporting indicators used in the standards and regulations of the Central Bank of the Russian Federation and Basel III guidance materials. The study received an initial assessment of risks and their comparison with rating indicators of financial stability. The results showed that financial risks in aggregate identify the ability of the credit institution’s internal system to withstand negative changes in the external environment, taking into account the factors characterizing it.