About the Laboratory

Research in the banking sector, particularly in the era of digitalization, is of not only theoretical but also great practical interest. It contributes to the development of financial instruments and products based on innovative financial technologies, as well as to the formation of new business processes which includes management systems, within both individual commercial banks and the entire financial system, taking into account potential risks and instability. In this regard, systemic innovation in banks and the financial sector have become relevant and in demand in the following areas:

• Digital and ESG transformation.
• Risk control and early warning systems in the financial and non-financial sectors.
• Systemic risks and overcoming permanent crises.

The most important factor is the transition of banks to modern technologies. Financial stability is a key component in enhancing the development and efficiency of the banking sector, as the management of this sector requires improved methods of regulation at the micro and macro levels. It also necessitates the creation of management tools, aggregated systems for internal and external ratings, and early warning systems for risk control. Solving these problems will lead to an increase in education and research levels, as well as expert and consulting activities in the banking sector.

Goals and Objectives of the Laboratory

Goal: Formation, comparative analysis, and forecasting of financial innovations and risk management tools in the context of structural, digital, and ESG transformations of the economy.

Tasks:

• development and assessment of innovations in the banking sector and financial institutions;
• analysis, assessment of the efficiency and financial stability of banking and financial activities of various types of financial institutions, including the development of risk control;
• development of new methods and approaches to risk management in financial organizations and commercial banks;
• assessment of systemic risk and development of macroprudential policy tools.

The Main Areas of Laboratory Activity

1) Development and innovation of the banking sector and financial institutions, including such areas as:

• digital transformation, digital finance, and digital currencies; business processes of banking innovations; neobanking and ecosystems; benefits from the implementation of innovations;
• demographic and regional characteristics, as well as relationships within related areas of business, including culture and sports.

2) Assessment of financial stability and prudential regulation, including:

• development and validation of credit models and other financial risks;
• adaptation of rating models to factors of a non-financial nature (ESG factors, innovations, corporate governance, pandemics).

3) Risk control in risk management systems, including the management of value creation factors taking into account risks.

4) Research and assessment of systemic risks and financial stress in conditions of ongoing crises, including:

• development of indicators for systemic risks;
• study of warning systems at the macro and micro levels.

Scientific Activity

The laboratory focuses on the creation and development of research on financial innovations and risk management tools, particularly in the context of structural, digital and ESG transformations in the economy. The main scientific areas of laboratory activity are the development of approaches to creating and comparing methodologies and models for assessing financial risks of businesses from various sectors of the economy, the formation of a database of key indicators for assessing the financial risks of various companies, the publication of informational, analytical, and expert materials on selected scientific topics.