A Method for Calculating the Real Value of Equity by Identifying Toxic Assets in the Reports of Professional Participants of the Securities Market

• Authors: Borodin Alexander , Shamin Vadim , Shamina Irina
• Languages of publication: EN

Abstracts

EN

This article is devoted to a comprehensive study of toxic assets, which are on the balance sheets of professional securities market participants, in order to calculate the real value of capital. The authors have developed a method similar to a formalized algorithm for identifying toxic assets of liquidating or liquidated companies and assets in credit institutions with a revoked license, for subsequently adjusting the value of equity (net assets), and analyzing for compliance with the Bank of Russia supervisory requirements. The method is described by the authors in accordance with BPMN notation. The authors determined the information base of the method, which includes only mandatory reporting and open information resources, which makes it simple and transparent for users. Prospective users of the method may be the Bank of Russia, current and future coun¬terparties of professional participants in the securities market, DBMS developers and scientific employees of economic specialties. The method was tested by the authors on the basis of a real-life brokerage company.

Keywords

EN

toxic assets; reports of professional participants of the securities market; the real value of equity; supervision of the Bank of Russia

• Publisher: Uniwersytet Warmińsko-Mazurski w Olsztynie
• Journal: Olsztyn Economic Journal
• Year: 2018
• Volume: 13
• Issue: 4
• Pages: 387-396

Dates

published

2018-11-05

Contributors

author

Borodin Alexander

• Plekhanov Russian University of Economics in Moscow

author

Shamin Vadim

• Plekhanov Russian University of Economics in Moscow

author

Shamina Irina

• Plekhanov Russian University of Economics in Moscow

References

• About requirements to equity of professional participants of the security market. 2017. Instructive Regulation of the Bank of Russia of 11 May, No. 4373-U.
• Establishment of creditors' claims and maintenance of the register of claims of creditors of the liquidated credit organization the methodology of the state corporation "Deposit Insurance Agency" of September 07, 2006 (as amended on March 24, 2016) (approved by the Board of Directors, protocol No. 54).
• Liquidation of credit institutions. 2017. Central Bank of the Russian Federation (Bank of Russia), https://www.cbr.ru/credit/likvidbase/information_01012017.pdf (access: 13.12.2017).
• On the securities market. 1996. Federal Law of the Russian Federation of April 22, No. 39-FZ (as amended on November 25, 2017).
• On the Terms and Procedure for Compiling and Submitting Reporting Forms by Professional Securities Market Participants to the Central Bank of the Russian Federation. 2015. Instructive Regulation of the Bank of Russia of January 15, No. 3533-U (as amended on June 21, 2017).
• Rybalka A., Salnikov V. 2017. Bankruptcies of legal entities in Russia: main trends. Center for Macroeconomic Analysis and Short-Term Forecasting, http://www.forecast.ru/_ARCHIVE/ Analitics/PR0M/2017/Bnkrpc-3-17.pdf (access: 7.11.2017).