Taking Indicators of Elevated Risks into Account in Bank's Ratings

Pavel A. Krutitskii – Leading Researcher of the Keldysh Institute of Applied Mathematics, Russian Academy of Sciences, PhD in Mathematics and Physics, Associate Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Number of large banks which lost licenses recently boasted of good ratings from international and domestic rating agencies which stood far from near default standing. The article discusses the features of increased risks which the rating agencies failed to see in those banks. These features point to the fact that their accountability can be not quite accurate and the experts’ task is to evaluate their real financial indicators along indirect data. As a proof for increased risks, banks are given statistics of defaults and examples of ‘fallen’ banks. It is proposed to take into consideration the features of increased risks while giving bank ratings.

Key words: bank’s ratings, indicators of enhanced riscs, default risks, authentic of banks reports, inverse problems.