TRANSPARENCY OF STRESS-TESTING OF BANK CREDIT RISKJournal: Herald of Kyiv National University of Trade and Economics (Vol.102, No. 4)
Publication Date: 2015-09-03
Authors : ANISIMOVA Lidiya;
Page : 91-104
Keywords : stress-testing; banking system; scenario; national regulator; business activity.;
Background. Transparency of stress-testing of credit risk is able to substantially promote trust to the banks of creditors, investors and population, and also to activate all market participants. Needless to say that forming open environment in the field of carrying out stress tests will provide stability of functioning of the banking system on the whole by every bank that is why research of this economic phenomenon is topical enough and important on the modern stage of bank sector development. The review of scientific sources in this field testifies that quite a bit domestic and foreign scientists were engaged in research of different aspects of transparency of bank activity. However study of essence and necessity of transparency of stress-testing of bank risks, and especially credit, as one of most substantial in bank activity, needs the detailed theoretical and practical research. The aim of the research is study of theoretic-methodical and practical principles of providing transparency of stress-testing of bank credit risk to support financial stability of the banking system of any country. Materials and methods. The informative base of research of the transparency of stress-testing of bank credit risk was formed from such sources, as the scientific articles of this subject, official sites of world leading banks and internet-source of economic news. The results of research. Transparency of stress tests of credit risk, as one of the most valid in banks, is characterized with an informative openness, publicity of central bank or/and particular bank in relation to procedure of stress-testing, including methodology, time, description of macro- or/and microeconomic factors, results of passing stress tests and others like that with the purpose of subsequent prognosis and analytic geometry of influence of credit risk on activity of bank sector or/and separate bank. Too low level of transparency of stress-testing of not only credit risk but also all bank risks, in Ukraine substantially hampers development bank the sector of country. National Bank has to solve this problem that will provide efficiency of control system of bank risks at the level of particular domestic banks and banking system on the whole. Conclusion. Procedure transparency of credit risk stress-testing in Ukraine must provide the increase of investment attractiveness level and quality of corporate management of banks. The NBU must: control the proper implementation by the domestic banks of requirements of Methodical recommendations in relation to stress-testing in banks; unify to the international standards access to the information of the annual financial reporting within the limits of section in relation to management risks; to provide the identical degree of working out in detail information on conducted stress-testing of credit risk in particular banks, and also annual macroeconomic stress-testing of credit risk of the banking system of Ukraine with the obligatory publication of results in the special annual report.
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