On ensuring the banking sector’s stability under sanctions to attain financial security
Importance Whereas the Russian economy is undergoing a crisis, the national banking sector demonstrates unstable performance, and the leading scientists and analysts pay great attention to the ways of reaching the national security, it is very relevant and reasonable to consider the matter of ensuring the banking sector stability, concurrently with financial security. Objectives The objective of the research is to examine how the banking sector and its condition influence the process of ensuring Russia’s financial security, and to identify approaches to sustaining the banking sector stability and reaching the financial security. The research pursues the following tasks: to find the relation between the banking sector stability and financial security of the State; to analyze the current position of the banking sector; to elaborate steps for detecting hazardous situations in the banking sector in order to ensure its stability and reach the financial security of the State. Methods Using statistical methods, we reviewed the position of the Russian banking sector. We determine a set of leading indicators that may be considered as early warning for the banking system to detect crisis threats beforehand and ultimately ensure the financial security. Results We find how the banking system stability and financial security of Russia relate to each other. We prove that the current position of the Russian banking sector cannot be qualified as stable and sustainable, and figure out that the leading indicators are the main tool to spot crisis situations in the banking sector. Conclusions and Relevance We conclude that the system of leading indicators can serve as an early warning mechanism to signal a crisis arising in the banking system and therefore to prevent it, ensuring the banking sector stability and financial security of the State.