Sveshnikova E.T. Adaptation of Basel Agreements to the Currency Risks Management in Ukraine and Russia

DOI: http://dx.doi.org/10.15688/jvolsu3.2015.3.12

Ekaterina Tikhonovna Sveshnikova
Assistant Professor,
Department of Management, Marketing and Law,
Far Eastern State Agrarian University
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Politekhnicheskaya St., 86, 675005 Blagoveshchensk, Amur Region, Russian Federation


Abstract. The article reveals the problem of adapting the Basel standards for managing the market and, in particular, foreign exchange risks to the conditions of the national economies of Ukraine and Russia. Internationality, fictitiousness and speculating of the currency transactions necessitated the transition of national banking systems of Ukraine and Russia to the international standards of Basel Committee. The article describes the history and shows the gradual process of implementation of these standards in the banking law and practice. We have studied the nature of the categories of “market risk” and “foreign exchange risk”. The place of the foreign exchange risk is updated in the classification of banking risks by analyzing the different views, and the mechanism of its effect is identified on the activities of commercial banks. The proposals on copyright issues are presented in particular: the necessity of combining the stock, interest rate and foreign exchange risks in the market risk group, as well as fixing the common regulatory definition of foreign exchange risk in the legislation. In the article the author’s category definition interpretation of “foreign exchange risk management system” is given in the light of its absence in the legal and the economic literature. The author also gives the recommendations to banks on developing the individual models for risk management in accordance with their own needs and current circumstances.
Key words: market risk, currency risk, commercial bank, bank, Basel agreements, Basel I, Basel II, Basel III, system of currency risk management.

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Adaptation of Basel Agreements to the Currency Risks Management in Ukraine and Russia by Sveshnikova E.T. is licensed under a Creative Commons Attribution 4.0 International License.

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