Bankruptcy of Credit Organizations: Causes and Prevention

Abstract:

Today one of key questions of the banking sector is the problem of credit institutions’ devastation. Last time the quantity of credit institutions sharply reduced. The causes of such situation are macroeconomic conditions, limitations of policy of the Central Bank of the Russian Federation and necessity of improvement of standard and legal base in the bank sphere. In the research, authors analyze the problems connected with insolvency of credit institutions of the Russian Federation. Dynamics of bankruptcy of credit institutions and its causes are investigated. Authors identify the main causes of bankruptcy of credit institutions and prove that the modern methods of prevention of credit institutions’ bankruptcy do not take into account the identified causes.

 

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