Научный семинар IDLab: Bank strategy and failure probability
Мероприятие завершено
Speaker: Victor Krakovich
Coauthors: López Iturriaga F. J., Barajas A.
Abstract
We analyze all banks that operated in Russia from 2013 to 2019 to identify the bank strategies associated with higher bank stability. Russia provides a great opportunity to study the differences between survived and failed banks since during this period more than half of the bank population failed. We consider three dimensions of the bank strategy: client segments of deposits and loans; size, growth rate and profitability; ownership structure. We combine survival analysis and logit regression. Our results show that in terms of client segmentation the more sustainable strategy is attracting the deposits from the companies to lend them to the individuals. The profitability is negatively related to the failure probability. These finding is relevant for regulators as it supports the idea of promoting profitability as one of the key performance indicator for the bank. In terms of the ownership structure we see that foreign-owned bank are more stable.
Date and time: 22 September, 17:00 GMT+5 (Perm time)
Zoom link: https://us02web.zoom.us/j/88202602467?pwd=aGpqcUc5aHhUc1RaSTdmekZZZGlTUT09
ID: 882 0260 2467
Password: 972079
Coauthors: López Iturriaga F. J., Barajas A.
Abstract
We analyze all banks that operated in Russia from 2013 to 2019 to identify the bank strategies associated with higher bank stability. Russia provides a great opportunity to study the differences between survived and failed banks since during this period more than half of the bank population failed. We consider three dimensions of the bank strategy: client segments of deposits and loans; size, growth rate and profitability; ownership structure. We combine survival analysis and logit regression. Our results show that in terms of client segmentation the more sustainable strategy is attracting the deposits from the companies to lend them to the individuals. The profitability is negatively related to the failure probability. These finding is relevant for regulators as it supports the idea of promoting profitability as one of the key performance indicator for the bank. In terms of the ownership structure we see that foreign-owned bank are more stable.
Date and time: 22 September, 17:00 GMT+5 (Perm time)
Zoom link: https://us02web.zoom.us/j/88202602467?pwd=aGpqcUc5aHhUc1RaSTdmekZZZGlTUT09
ID: 882 0260 2467
Password: 972079
Дата
22 сентября
17:00
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