INTEGRATED BANK RISK MONITORING SYSTEM AS A TOOL FOR ENHANCING FINANCIAL SYSTEM RESILIENCE

Abstract

This article examines the challenges of monitoring banking risks in conditions of financial instability and heightened requirements for ensuring the financial security of business entities. It has been established that existing systems for assessing the financial condition of banks are predominantly geared towards the needs of regulatory bodies and professional financial market participants, which limits the scope for their practical use by corporate depositors when making decisions regarding the placement of temporarily available funds.

The feasibility of using an integrated approach to monitoring banking risks, which combines the assessment of quantitative and qualitative indicators of banks’ performance with an analysis of factors affecting the financial security of enterprises, is substantiated. It is proposed to use the results of the rating assessment of banks’ financial condition as a tool to support management decisions regarding the selection of banking institutions for the placement of financial resources and the minimisation of the risk of liquidity loss.

Particular attention is paid to the use of forensic early warning indicators, which complement traditional financial indicators and enable the timely identification of indirect signs of increased risk in the operations of banking institutions. Such indicators include reputational risks, corporate conflicts, legal disputes, changes in ownership structure and other factors that may indicate a deterioration in a bank’s financial condition even before the relevant changes are reflected in the financial statements.

The practical significance of the study lies in the development of a comprehensive toolkit for monitoring banking risks, which can be used by enterprises to ensure financial security, manage liquidity and improve the soundness of decisions regarding the allocation of temporarily available funds.

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