Key indicators of economic risks of a commercial bank

Abstract

Subject. The article addresses the banking sector’s risks in connection with the current economic situation. The topic is relevant because the banking sector that includes top-tier banks is largely focused on the inflow of foreign capital, and the imposed sanctions affect both the access of Russian banks to international financial markets to place funds and the opportunities to attract foreign capital, which complicates capitalization, resource provision, and funding. Objectives. The study aims to examine the impact of the sanctions policy of unfriendly countries on resource supply, financial ratios, and effectiveness of applied measures to counter external threats. Methods. The study rests on methods of economic analysis and comparison. The study subject was PAO VTB Bank. Results. The imposed sanctions significantly limit the ability to increase capital through external sources, have a negative impact on capitalization. This significantly reduced the financial ratios and the bank's performance in 2022. The adaptation is aimed at changing the methods of evaluating key indicators by the regulator, attracting domestic resources, changing deposit policy, and diversifying activities. Conclusions. Without government support, banks that are actively involved in foreign markets’ activities would not have coped with the sanctions pressure. Currently, the risks remain, but they are in controlled values.