Finance and Credit

Financial insolvency indicators of the commercial bank

Vol. 24, Iss. 8, AUGUST 2018

Received: 8 June 2018

Received in revised form: 22 June 2018

Accepted: 9 July 2018

Available online: 29 August 2018

Subject Heading: Banking

JEL Classification: G17, G21, G33

Pages: 1989–2003

Bitkina I.K. Volgograd Institute of Management, Branch of Russian Presidential Academy of National Economy and Public Administration, Volgograd, Russian Federation

Subject This article discusses the methodological approach to the assessment of financial insolvency of the commercial bank.
Objectives The article aims to develop an approach to revealing the indicators that show the commercial bank's financial insolvency.
Methods The study used the methods of abstraction, synthesis, generalization, and critical analysis.
Results The study was conducted on the basis of an empirical base, including fifty Russian commercial banks that went out if business within the period of 2013–2017. The article reveals the indicators of financial insolvency of the commercial bank, allowing to predict the probability of its financial insolvency. The article presents an original approach to the estimation of the level of financial insolvency of the commercial bank based on the application of indicators of financial position and regulatory discipline.
Relevance The results obtained are methodological and can be used in the evaluation of the activity of commercial banks and forecasting of their financial insolvency by analysts. As well, the results obtained can be used for further development of the domestic science in the field of banking and in practical activities of the Russian organizations to choose options of financial improvement of the credit organization.

Keywords: financial insolvency, bankruptcy, liquidity, indicators, regulatory discipline


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