Article name Regulation of Currency Risks of Russian Banks in the Context of International Sanctions
Authors Glebova A.. ,
Berezin A.M. student of the master\'s degree program, antonb2001@
Bibliographic description Glebova A. G., Berezin A. M. Regulation of Currency Risks of Russian Banks in the Context of International Sanctions // Transbaikal State University Journal. 2024. Vol. 29, no. 4. P. 105–114. DOI: 10.2109/2227- 9245-2023-29-4-105-114.
Category Economy
DOI 336.71
DOI 10.2109/2227-9245-2023-29-4-105-114
Article type Original article
Annotation Within the framework of this work, the problems faced by commercial banks in Russia in managing currency risk under sanctions are considered, and possible solutions are proposed. The purpose of the presented research is to identify the features of bank currency risks regulation in the context of international sanctions. The object of the study is bank currency risks; the subject is regulatory concepts of bank currency risk management in the context of international sanctions. According to the results of the study, it has been found that the events of 2022 revealed certain vulnerabilities of the Russian banking system. For example, most of the assets and liabilities of Russian banks were concentrated in the currencies of unfriendly countries. As a result of this imbalance, being in conditions of limited access to the foreign exchange market, commercial banks found themselves in a situation where, in order to comply with the limits of open foreign exchange positions, they had to resort to the balance method, converting claims and obligations from \"toxic\" currencies into friendly ones. In addition, banks actively began to expand the list of alternative currencies that were supposed to have high liquidity and low volatility. A desirable property of alternative currencies is also pegging to the US dollar as an additional protection against volatility. The promptness of the regulator\'s actions and the ability to use directive measures helped the banking system to significantly reduce losses from the movement of exchange rates. At the same time, the regulator, realizing the uniqueness of the situation, made certain concessions for commercial banks, thanks to which banks retained their freedom of action. All this combined made it possible to quickly navigate in conditions of severe restrictions and minimize currency risk.
Key words foreign exchange market, banking, banking services market, corporate currency risk, currency risk measurement, risk management, currency hedging, international economic sanctions, Bank of Russia, regulatory concept
Article information
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