Level of credit risk as a factor of bank stability

The current instructions of the Bank of Russia for assessing the financial stability of banks are not universal, do not contain a definition of the key concept, are not enshrined in a regulatory legal act and are intended for the purpose of recognizing compliance with the requirements for participation in the deposit insurance system. The concept of “financial stability of a commercial bank” does not have a legal definition and remains at the center of scientific discussions. Within the framework of the traditional, accounting approach, it is customary to operate with solvency and an acceptable level of current liquidity. In current conditions, sustainability, abstracting from the Sustainable Development Goals, is the ability of an economic entity to maintain its core activities, fully satisfying market demands in conditions of uncertainty and active (sanctions) external counteraction. The current methods for determining the financial stability of Russian banks are informative when relying on an “expanded” understanding of stability, taking into account external pressure. Due to serious changes in the situation from 2022, the standard, mainly accounting set of indicators must be adjusted taking into account not only traditional assessments of the amount (adequacy) of capital, the degree of portfolio diversification, etc., but also the specifics of credit and investment activities in the current and forecast conditions.