Subject The article explores the relationship between real estate markets and the banking system stability, namely the one between the real estate asset structure of banks and potential losses in case of asset sharp impairment. Objectives The article aims to examine the relationship between the structure of real estate assets on the Russian banks' books and banking system stability. Methods For the study, we used the methods of logical and time-series analyses. Results The article reveals a significant concentration of real estate assets on the balances of the largest banks. It notes that the share of real estate assets in the total assets of the Russian banking system is insignificant and incapable to cause a full-scale banking crisis even in case of sharp impairment of real estate portfolios of banks. Conclusions However, given the potential growth of real estate portfolios on the banks' balances and their share in the assets of the banking system, there is a need to create a uniform comprehensive system of indicators of value management of banks' real estate portfolios, adapted to the non-profile nature of property management for the banking sector and features of the Russian real estate market.
Keywords: real estate, risk, property value, systemically important banks
Malpezzi S. Residential Real Estate in the U.S. Financial Crisis, the Great Recession, and their Aftermath. Taiwan Economic Review, 2017, vol. 45, no. 1, pp. 5–56. URL: Link
Šútorová B., Teplý P. The Impact of Basel III on Lending Rates of EU Banks. Czech Journal of Economics and Finance, 2013, vol. 63, no. 3, pp. 226–243. URL: Link
Hoesli M., Milcheva S., Moss A. Is Financial Regulation Good or Bad for Real Estate Companies? – An Event Study. The Journal of Real Estate Finance and Economics, 2017, pp. 1–39. URL: Link
Ferrari S., Pirovano M., Kaltwasser P.R. Systemic Risk, Macroprudential Policy, Bank Capital Requirements, Real Estate. National Bank of Belgium Working Paper Research, October 2016, no. 306, 28 p. URL: Link
Fedotova M.A., Sternik S.G., Latkin F.A. [Modern corporate real estate portfolio valuation problems]. Imushchestvennye otnosheniya v Rossiiskoi Federatsii = Property Relations in the Russian Federation, 2017, no. 1, pp. 70–77. URL: Link (In Russ.)
Igan D. Dealing with Real Estate Booms and Busts. BIS Papers, 2012, no. 64, pp. 59–67. URL: Link
Brave S.A., Lopez J.A. Calibrating Macroprudential Policy to Forecasts of Financial Stability. Federal Reserve Bank of San Francisco Working Papers, August 2017, no. 2017-17. URL: Link
Barrell R., Davis P.E., Karim D. et al. Bank Regulation, Property Prices and Early Warning Systems for Banking Crises in OECD Countries. Journal of Banking & Finance, 2010, vol. 34, iss. 9, pp. 2255–2264. URL: Link
Reinhart C.M., Rogoff K.S. This Time Is Different: Eight Centuries of Financial Folly. New Jersey, Princeton University Press, 2011, 512 p.
Mian A., Sufi A. Household Leverage and the Recession of 2007 to 2009. 10th Jacques Polak Annual Research Conference. International Monetary Fund, Washington, DC, November 5–6, 2009. URL: Link
Zhu H. The Importance of Property Markets for Monetary Policy and Financial Stability. BIS Papers, 2005, no. 21, pp. 9–29. URL: Link
Kotlyarov M.A. [Real estate market in the system of financial stability supporting by the Central Bank of the Russian Federation]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2015, vol. 8, iss. 39, pp. 21–31. URL: Link (In Russ.)
Koika K.A. [Establishing Statutory Ratios as an Instrument of the Bank of Russia in Regulating Consolidation Processes in the Banking Sector of Russia]. Nauka i biznes: puti razvitiya = Science and Business: Ways of Development, 2017, no. 8, pp. 51–54. URL: Link-2017-main.pdf (In Russ.)
Blokhin A.A., Sternik S.G., Bliznyak A.B. et al. Effekty institutsional'nykh razlichii i institutsional'noi renty v rossiiskoi ekonomike [Effects of institutional distinctions and institutional rent in the Russian economy]. Moscow, Mezhdunarodnye otnosheniya Publ., 2018, 74 p.
Sternik G.M., Sternik S.G. [Methods of mass appraisal of commercial real estate rental rates in the narrow markets]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2015, no. 5, pp. 73–79. URL: Link (In Russ.)
Fedotova M.A., Sternik S.G., Teleshev G.V. [Methodology of managing the real estate portfolio consisting of own capital and bank assets]. Upravlencheskie nauki = Management Science, 2015, vol. 5, iss. 4, pp. 62–70. URL: Link (In Russ.)
Bolochev S.A., Alieva A.I., Borodenko A.A. [Impact assessment of international sanctions on the Russian real estate market]. Inzhenerno-stroitel'nyi vestnik Prikaspiya, 2014, no. 4, pp. 46–49. URL: Link (In Russ.)
Apgar M., IV. Managing Real Estate to Build Value. Harvard Business Review, 1995, November–December. URL: Link
Lindholm A.-L., Gibler K.M., Leväinen K.I. Modeling the Value-Adding Attributes of Real Estate to the Wealth Maximization of the Firm. Journal of Real Estate Research, 2006, vol. 28, no. 4, pp. 445–475. URL: Link
Zhukov E.V. [Strategic management of real estate in Russian corporations]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2017, no. 5-2, pp. 1119–1124. (In Russ.)
Ozerov E.S., Pupentsova S.V. Upravlenie stoimost'yu i investitsionnym potentsialom nedvizhimosti [Management of cost and estate property investment potential]. St. Petersburg, Polytechnic University Publ., 2015, 602 p.