THE INDICATIVE APPROACH TO STUDYING CREDIT POTENTIAL OF A REGIONAL BANKING SYSTEM

Abstract

The paper analyses the traditional (institutional) approach and the indicative approach to evaluating the state and efficiency of a regional system for crediting legal entities in a federal district. The authors propose a system of indices enabling a deeper and differentiated approach and objectification of evaluating a potential of a regional banking system. The most important indices are: the ratio of customers (legal entities) funds to consolidated loans to legal entities in a Federal District, gross loans per small or medium company in a Federal District, the ratio of regional banks in the credit portfolio of small and medium business in a District in the overall credit portfolio of legal entities within the Federal District. The paper analyses the current state of regional banking systems in the South and Central Federal Districts, formulates the main proposals on implementing the indicative approach to monitoring the banking sector in a Federal District. The findings of system-wide monitoring of credit potential of banking organizations based on the indicative approach should be taken into account in devising development scenarios of banking operations as well as the banking sector in a region.