In 2014 OW conducted a survey among 11 out of Top-20 Russian banks in which we analysed their policies, procedures and methods in BSM in order to identify key gaps with best practice that are relevant in the current situation. The report “Balance Sheet Management in Russian banks: challenging times” is based on the main conclusions of the survey and aims to help the banking industry identify priorities in upgrading BSM.
The report demonstrates the importance of each element of the BSM framework on the basis of specific Russian market developments in 2014: Russian banking system reliance on the Central Bank funding, FX and interest rates volatility, declining capital adequacy.
The report also summarizes observations on ranges of practices used and key gaps in Russian banks’ capabilities as well as provides recommendations on priorities for improvement for the main elements of BSM: liquidity risk management, capital management, Funds Transfer Pricing, FX and interest rate risk management, organisation and incentives in ALM.
Authors:
Sorin Talamba – Partner, Finance and Risk
Artiom Arkhangelskiy – Principal, Finance and Risk
Dmitry Grishin – Associate, Finance and Risk
Evgeniya Krasilnikova – Senior consultant
Denis Kupriyanov – Associate
