Multidimensional comparative analysis of statutory requirements for commercial banks (the case of the Amur region)

The problems associated with commercial banks rating have gained prominence over the recent decades, but most ratings focus on the amounts of assets, the credit size and the deposit portfolios. Therefore, large credit institutions as a rule consistently hold the leading positions. The author's method makes it possible to consider bank rating based on their attitude to risk, which solely depends on the risk management policy of a commercial bank. It can be used for the elaboration of bank-to-bank rating and for the analysis of the performance of a single bank (the trend) in different periods. The paper considers the scientific aspects of commercial banks rating based on their compliance with the statutory requirements set by the Central Bank of the Russian Federation using the method of multidimensional comparative analysis. In addition, the authors identified the pass/fail compared to other methods, and in particular, the methods of Banki.ru and the methods of Russian and international agencies. The analysis is focused on the system of statutory economic requirements for commercial banks with the internal structural units in the territory of the Amur region. Public financial statements of these commercial banks posted on their official websites were used for sampling and analysis. The paper presents the results of approbation of this methodology for the Amur region. For instance, it has been concluded that during the analyzed period of five years (2009-2013), the credit institutions mostly complied with the regulatory requirements for the implementation of prudential regulations. This study pioneers the use of multivariate comparison method to elaborate banks' rating based on their attitude towards compliance with the requirements. What's more, this method can be applied in calculations for the new periods. Accordingly, the rating will be constantly modified, and the banks that hold the leading positions today, can be pushed into lower positions due to various reasons a few quarters later. In addition, this method ensures a more balanced approach to the elaboration of ratings, regardless of the size and territorial branching of the bank, as it is devoid of subjectivity (no expert evaluations and weighing coefficients), which makes all the statutory requirements of the Central Bank equally important and enables assessing the overall resilience of commercial banks. The analysis of 2009-2013 revealed three leaders ("Vneshprombank" Ltd, CB "European Express" and of "Home Credit and Finance Bank"). Presumably, the experience of these credit institutions to implement the requirements of the Central Bank of the Russian Federation can be studied within the best practices of benchmarking.

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