Some modern trends in the management of commercial banks

Abstract

The scale of banks consolidation has taken on an unprecedented nature in recent decades. Large banks have much more opportunity to attract a longterm financial resources from the world capital markets, the qualitative and quantitative indicators of the bank created by the merger / absorption can be much better. On the other hand, absorption can be interpreted as a central element of the market-driven survival process, and the distinguishing criterion between absorbed or absorbing companies is the firm’s size rather than the norm of profitability or market valuation. The 2008-2009 global financial crisis has led to the need to improve international standards for regulation and supervision in the financial sector. In 2014, Basel IV’s revised standardized approach to market risk was published, focusing on three messages - 1. Risk; 2. Risk management; 3. Risk-oriented supervision. In addition, the present paper focuses on the importance of stress-testing on the external factors of the banking system in the modern stage, speculative risks, deposit risk and the importance of the deposit insurance system as a determinant of banks’ deposit policy. The article also points out that the share of the world countries, including Georgia, that actually have deposit insurance has increased since 2013.