ESTABLISHING THE FINANCIAL FOUNDATION OF THE CREDIT SECTOR IN THE FAR NORTH REGIONS WITHIN THE FRAMEWORK OF REGIONAL FINANCIAL SECURITY 

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Roman V. Badylevich1, Elena A. Verbinenko2

1,2Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Sciences, Apatity, Russia

1ramapatit@rambler.ru, ORCID 0000-0002-3164-8745

2everbinenko@yandex.ru, ORCID 0000-0003-3709-2116

 

Abstract. This study aims to analyze the sufficiency and sustainability of financial resource mobilization by credit institutions in the Far North regions of Russia within the framework of regional financial security assessment. The paper examines  the adequacy of financial resource mobilization through coefficient analysis. It was found that, over the past decade, there has been a consistent increase in the attraction of funds by the credit system in the Far North regions, aligning with  the national growth rates. In recent years, the rate of fund mobilization from legal entities has exceeded the national average, while the rate from individuals has been lower than Russia’s average. Currently, the Far North regions’ high financial potential is supported by a relatively high share of individual deposits.

The sustainability of the resources attracted by regional credit systems was assessed using regression analysis. The results indicate that northern regions exhibit low volatility in individual deposits but high volatility in term accounts belonging  to legal entities, indicating significant risks of fund outflows from this category. Based on these findings, a classification  of the Far North regions was developed. The analysis not only identified regions with the highest financial risks related  to borrowing base formation but also highlighted northern regions with the greatest potential for regional investment instruments. These regions include the Magadan and Murmansk regions, the Kamchatka Territory, and the Republic  of Karelia.

Keywords: credit system, banks, credit potential, mobilized funds, financial security, financial risks, Russian Far North regions

Acknowledgments: This research was conducted within the framework of the state-funded research project titled “Strategic Approaches to Managing Financial and Investment Potential to Ensure the Financial Security of Sustainable Development  in Russia’s Arctic Regions in the New Geopolitical Reality” (123012500049-5).

For citation: Badylevich R. V., Verbinenko E. A. Establishing the financial foundation of the credit sector in the Far North regions within the framework of regional financial security. Sever i rynok: formirovanie ekonomicheskogo poryadka  [The North and the Market: Forming the Economic Order], 2024, no. 4, pp. 112–128. doi:10.37614/2220-802X.4.2024.86.008.

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