Peter Brusov, Tatiana Filatova, Natali Orekhova, Veniamin Kulik, Irwin Weil and Andrey Brailov

DOI: https://doi.org/10.6000/1929-7092.2018.07.31

Published: 12 November 2018  

Abstract: Paper is devoted to study of the impact of the Central Bank key rate and commercial banks credit rates on creating and maintaining of a favorable investment climate in the country. Within the framework of modern investment models created by the authors, the dependence of the efficiency of investments on the level of debt financing within a wide range of values of equity costs and debt capital costs under different project terms (long –term projects as well as projects of arbitrary duration) and different investment profitability coefficients b is investigated. The effectiveness of investments is determined by Net Present Value, NPV. The study is conducted within the framework of investment models with debt repayment at the end of the project term. It is found that NPV depends practically linearly on leverage level L, increasing or decreasing depending on profitability coefficient b and credit rate values k_d. The cut off credit rate values k_d*, separating the range of increasing NPV(L) from range of decreasing NPV(L), are determined. The Central Bank should keep its key rate at the level which allow commercial banks keep their credit rates below the cut off credit rate k_d* values in order to create and maintain a favorable investment climate in the country.

Keywords: Central Bank, commercial banks, a favorable investment climate, credit rate, key rate, profitability coefficient.

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Vladimir I. Soloviev

DOI: https://doi.org/10.6000/1929-7092.2018.07.32

Published: 12 November 2018  

Abstract: Fintech is today not only a hot mass media discussion of the future of the financial sector, but also real projects that change banking and financial services. The paper describes features and characteristics of contemporary Russian fintech landscape and ecosystem. The examples of innovative financial services in Russia, including online banking and accounting, new payments and transfers services, platforms for crowdfunding and peer-to-peer lending, blockchain initiatives, etc. are discussed. It is shown that fintech initiatives have not yet led to a radical transformation of the financial sector in Russia because participants of the fintech ecosystem have different points of view on fintech. Russian banks are now developing fintech initiatives within themselves, encouraging technology companies and fintech startups to focus their efforts on innovations that are aimed at improving processes, rather than opening new markets. The Government directs the main efforts to initiatives related to regulation of cryptocurrencies circulation and to introduction of blockchain in regtech and cybersecurity. Customers are interested in new and more convenient functionality in mobile applications, and they are waiting for new value propositions, including fast international money transfers, roboadvising, personal financial management, peer-to-peer lending.

Keywords: Digital banking, fintech, fintech landscape, fintech infrastructure, fintech business models.

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Davydov Vyacheslav Anatolievich, Lavrushin Oleg Ivanovich, Sokolinskaya Natalia Evaldovna, Khalilova Milyausha Khamitovna

DOI: https://doi.org/10.6000/1929-7092.2018.07.33

Published: 12 November 2018  

Abstract: The article discloses a financial model characterizing the stability of credit institutions. In addition to the traditional quantitative indicators of the bank's activities, such as capital, assets, profit of the credit institution and others, relative indicators are of particular importance for assessing the effectiveness of banking activities. It is necessary to evaluate both quantitative and qualitative indicators of the activity of credit institutions, the synergy of which will enable them to identify the components of financial soundness and their assessment. An assessment of the financial stability of an individual credit institution is possible only based on the results of a comparison with the industry average components of financial stability. Particular attention is paid to such a component of assessing the financial stability of banks, as the effectiveness of the settlement of troubled debts. The authors of the article developed an alternative system for choosing a strategy for resolving the problem debt of credit institutions based on the qualimetric model.

The idea and motivation (idea, purpose, motivation)

The idea of the analysis is to study the validity and completeness of the hypotheses in accordance with which a study was made of financial stability of credit institutions and its impact on the willingness of customers and investors of banks to place their funds with them, as well as their possible outflow or counteraction to it depending on compliance their market discipline, the level and quality of risk management, as well as the availability of transparent and reliable information about the financial situation.

Keywords: Finance, bank, financial stability.

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Abramova Marina, Dubova Svetlana and Maslennikov Vladimir

DOI: https://doi.org/10.6000/1929-7092.2018.07.34

Published: 12 November 2018  

Abstract: The article's relevance is determined by the fact that in the conditions of a bank-oriented financial system the “signals” from the central bank regarding decisions about the monetary policy go to the economy via banks, through which the main channels of the transmission mechanism of the monetary policy are implemented. The analysis of the effects of banks as the actors of the monetary policy is therefore relevant. The article, based on a study of the elements of investment potential for their impact on GDP, contains conclusions about the possibility of achieving economic growth as one of the strategic goals the monetary policy through the main channels of the transmission mechanism using its standard tools. The article is to identify and quantify the factors that have significant effects on economic growth through the impact on investment potential. The change in the Bank of Russia’s key interest affects only some of the investment potential elements such as deposits of legal entities in rubles. Such impact can slightly improve GDP. The use of monetary policy tools will enable the influence on the change of the nominal interest rate and, therefore, the adjustment of real rates, and it may also affect aggregate demand (consumption and investment potential).

Keywords: Investment potential, monetary policy, interest rate, economic growth.

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Boris Rubtsov and Natalya Annenskaya

DOI: https://doi.org/10.6000/1929-7092.2018.07.35

Published: 12 November 2018  

Abstract: A quarter of a century after the first Russian joint stock companies were set up, the Russian equity market has become the leading market in Eastern and Central Europe. Russia has a state of the art trading and settlement system, with the Moscow Exchange (MOEX) being its centerpiece. The Russian joint stock companies successfully introduce the best practices of corporate governance. The accounting system is becoming more and more adequate and transparent. However, in the last decade the Russian stock market has demonstrated one of the worst returns in the world among the 20 largest economies. Judged by the main indicators (P/E, P/B, Dividend Yield) the Russian market looks very much undervalued.

The authors analyze the causes of this situation, define the factors which impact most the Russian stock market (the ownership structure, volatility, dividend policy, the role of foreign investors, correlation with oil prices) and make the conclusion that the most important factor has been the sanctions imposed upon the largest Russian companies after 2014.

Keywords: Stock market, Russia, financial markets, emerging markets, regulation.

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