Credit risks reduction and stabilization of the banking sector by using derivative financial instruments

The article considers the possibilities of increasing the competitiveness of Russian commercial banks in the conditions of the financial crisis. The development of the derivatives market can play a key role in enhancing the competitiveness of the banking business. The use of derivative financial instruments by Russian banks can lead to risks mitigation. In addition, the article looks at potential ways of developing the derivatives market as a tool for stabilizing the banking sector.