Trends in the organization of conversion operations of commercial banks in the context of external challenges (case of the Sverdlovsk region)

The article examines the current issues of the organization of conversion operations of commercial banks in the context of external challenges on the example of the Sverdlovsk region. In the context of global economic challenges, including sanctions measures, isolation of Russia from the outside world, digitalization of financial services, changes in consumer preferences, banks face the need to adapt their strategies and tools. The conversion business of banks, on the one hand, is a source of commission income. On the other hand, the volatility of the foreign exchange markets, with inadequate control over the risks of performing conversion operations, can completely reset the profit of a credit institution. Therefore, the article discusses topical issues of revaluation of foreign currency, accounting for the financial result from this business and ways to reduce risks when converting some currencies into others. Based on statistical data, the results and effectiveness of the conversion business in regional commercial banks of the Sverdlovsk region were analyzed. Recommendations are also given to improve their effectiveness. The case of the Sverdlovsk region was taken as a basic one due to the fact that local credit institutions serve the largest industrial enterprises that make up a significant share of Russia’s GDP. Many of them are export and import oriented. That is why the issues of uninterrupted servicing of foreign economic activity of industrial enterprises, including conversion operations, are key to economic stability and further development. The conclusions of the article will be useful not only for the banking community of the Sverdlovsk region, but also for other regions specializing in industry and conducting active foreign economic activity.