Modern features for capital portfolio monitoring

Abstract

Purpose: Banking activity calls for new requirements, approaches, conditions, and mechanisms of the bank's liabilities management. Capital portfolio monitoring is an integral part of bank management. This study focuses on and proposes a quality criterion for the bank's capital portfolio, which has never been used by banking institutions so far. Design/Methodology/Approach: The proposed criterion represents a link between the banking sector and the common vector of Russia's current economic development and functioning. It takes into consideration the condition of macroeconomics, tendencies of the modern financial market and basic guidelines of the banking sector. Findings: Authors proved that the banking institution's capital portfolio analysis is impossible without monitoring activities. The process of permanent monitoring of the formation used, and the performance of banking capital need to be constantly improved, according to current trends in economic, social, political, and financial spheres. The study proposes new schemes, considering the current condition of the banking sector, macroeconomics and the regional social-economic environment. Practical Implications: The results may be implemented into activity of the Russian banking sector to improve the effectiveness of its business activity. Originality/Value: The study proposes a unique quality criterion for the bank's capital portfolio monitoring as an integral part of bank management.