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Цель исследования: Исследование направлено на расширение понимания природы различий в деятельности банков Китая и России и разработку обоснованных рекомендаций по политике межбанковского сотрудничества. Предмет исследования. Крупнейшие банки китайского и российского банковского сектора, в том числе Промышленный и торговый банк Китая (ICBC), Банк Китая, Сбербан к, банк ВТБ. Объектом исследования являются показатели и структурные коэффициенты, представленные в официальной отчетности, международном регулировании и независимой аналитике. Основные результаты исследования: обзор и сравнение банковских секторов Китая и России; описание теоретико - методологической базы анализа финансовой отчетности банков, включая национальное регулирование, регулирование Базель III и методы, используемые независимыми аналитиками; оценка и сравнение структурных коэффициентов и их динамики; выявление причин разницы в структурных коэффициентах финансовой отчетности китайских и российских банков; разработка рекомендаций по политике межбанковского сотрудничества. Научная новизна исследования: 1) использование индекса Рябцева дл я анализа структуры банковских показателей и процессов их формирования и выводы, сделанные на основе его применения; 2) дополнение анализа структурных соотношений анализом параметров линейных регрессионных моделей парной регрессии.

The aim of research: The research is aimed on broadening understanding of the nature of differences in activity of the banks in China and Russia and working out reasonable policy recommendation for interbank cooperation. Subject of study. The largest banks of Chinese and Russian banking sectors, including Industrial and Commercial bank of China (ICBC), Bank of China, Sberbank, VTB bank. Object of study is constituted by indicators and structural ratios represented in formal reporting, international regulation and independent analytics. Research methods: review of theoretical provisions, calculation and analysis of financial ratios based on bank reporting data, structural analysis of indicators and the dynamics of their change using the Ryabtsev index, regression modeling using the paired linear regression model. The main results of the research: overview and comparison of the banking sectors in China and Russia; description of theoretical and methodological base of bank financial statement analysis including national regulation, Basel III regulation and methods used by independent analysts: assessment and comparison of structural ratios and their dynamics: revealing the reasons for the difference in the structural ratio of the financial statements of Chinese and Russian banks; working out policy recommendations for interbank cooperation. Scientific novelty of the research: 1) use of the Ryabtsev index for the analysis of the structure of banking indicators and the processes of their formation and conclusions made on the basis of its application; 2) supplementation of the analysis of structural relationships with the analysis of the parameters of linear regression models of pair regression.

• ВЫПУСКНАЯ КВАЛИФИКАЦИОННАЯ РАБОТА МАГИСТЕРСКАЯ ДИССЕРТАЦИЯ
• СРАВНИТЕЛЬНЫЙ АНАЛИЗ СТРУКТУРНЫХ ПОКАЗАТЕЛЕЙ ФИНАНСОВОЙ ОТЧЕТНОСТИ КИТАЙСКИХ И РОССИЙСКИХ БАНКОВ
• PETER THE GREAT ST.PETERSBURG POLYTECHNIC UNIVERSITY
• Institute of Industrial Management,Economics and Trade
• Graduate School of Industrial Economics
• INTRODUCTION
• 1. OVERVIEW OF BANKING SECTORS IN CHINA AND RUSSIA
  • 1.1. Banking Industry in China
  • Figure 1.1 - Largest banks worldwide as of December 2024, by assets (in billion U.S. dollars) (Source: Statista.com)
• Now we consider factors shaping the future of China's Banking Industry.
• 1) A Low Interest Rate Environment In The Short To Medium Term.
  • 1.2. Banking Industry in Russia
  • 1.3. The overview of comparative research
• 2. THEORETICAL AND METHODOLOGICAL BASIS
  • 2.1. Banks’ Financial Statements
  • 2.2. Basics of bank statements assessing
  • 2.3. Requirements of Basel Committee on Banking Supervision reforms - Basel III and regulatory ratios
    • The Basel III framework is a central element of the Basel Committee’s response to the global financial crisis. It addresses a number of shortcomings in the pre-crisis regulatory framework and provides a foundation for a resilient banking system that w...
    • The initial phase of Basel III reforms focused on strengthening the following components of the regulatory framework (Appendix 2):
    •  improving the quality of bank regulatory capital by placing a greater focus on going-concern loss-absorbing capital in the form of Common Equity Tier 1 (CET1) capital;
    •  increasing the level of capital requirements to ensure that banks are sufficiently resilient to withstand losses in times of stress;
    •  enhancing risk capture by revising areas of the risk-weighted capital framework that proved to be acutely miscalibrated, including the global standards for market risk, counterparty credit risk and securitization;
    •  adding macroprudential elements to the regulatory framework, by:
    • 1. introducing capital buffers that are built up in good times and can be drawn down in times of stress to limit procyclicality;
    • 2. establishing a large exposures regime that mitigates systemic risks arising from interlinkages across financial institutions and concentrated exposures; and
    • 3. putting in place a capital buffer to address the externalities created by systemically important banks;
    • 4. specifying a minimum leverage ratio requirement to constrain excess leverage in the banking system and complement the risk-weighted capital requirements; and
    • 5. introducing an international framework for mitigating excessive liquidity risk and maturity transformation, through the Liquidity Coverage Ratio and Net Stable Funding Ratio.
    • The Committee’s now finalized Basel III reforms complement these improvements to the global regulatory framework. The revisions seek to restore credibility in the calculation of risk-weighted assets (RWAs) and improve the comparability of banks’ capit...
    •  enhancing the robustness and risk sensitivity of the standardized approaches for credit risk, credit valuation adjustment (CVA) risk and operational risk;
    •  constraining the use of the internal model approaches, by placing limits on certain inputs used to calculate capital requirements under the internal ratings-based (IRB) approach for credit risk and by removing the use of the internal model approache...
    •  introducing a leverage ratio buffer to further limit the leverage of global systemically important banks (G-SIBs); and
    •  replacing the existing Basel II output floor with a more robust risk-sensitive floor based on the Committee’s revised Basel III standardized approaches.
    • The Basel Committee on Banking Supervision has developed an internationally agreed set of measures that aims to strengthen the regulation, supervision, and risk management of the banking sector, known as Basel III. It consists of three main pillars: m...
    • Requirements on Capital.
    • 1. Quality and level of capital;
    •  Greater focus on common equity. The minimum will be raised to 4.5% of risk-weighted assets, after deductions.
    • 2. Capital loss absorption at the point of non-viability.
    • Contractual terms of capital instruments will include a clause that allows – at the discretion of the relevant authority – write-off or conversion to common shares if the bank is judged to be non-viable. This principle increases the contribution of th...
    • Capital conservation buffer Comprising common equity of 2.5% of risk-weighted assets, bringing the total common equity standard to 7%. Constraint on a bank’s discretionary distributions will be imposed when banks fall into the buffer range.
    • Countercyclical buffer
    • Imposed within a range of 0-2.5% comprising common equity, when authorities judge credit growth is resulting in an unacceptable build up of systematic risk.
    • Requirements on Risk Coverage.
    • Securitizations
    • Strengthens the capital treatment for certain complex securitisations. Requires banks to conduct more rigorous credit analyses of externally rated securitisation exposures.
    • Trading book
    • Significantly higher capital for trading and derivatives activities, as well as complex securitizations held in the trading book. Introduction of a stressed value-at-risk framework to help mitigate procyclicality. A capital charge for incremental risk...
    • Counterparty credit risk
    • Substantial strengthening of the counterparty credit risk framework. Includes: more stringent requirements for measuring exposure; capital incentives for banks to use central counterparties for derivatives; and higher capital for inter-financial secto...
    • Bank exposures to central counterparties (CCPs)
    • The Committee has proposed that trade exposures to a qualifying CCP will receive a 2% risk weight and default fund exposures to a qualifying CCP will be capitalized according to a risk-based method that consistently and simply estimates risk arising f...
    • Requirements on containing leverage.
    • Leverage ratio
    • A non-risk-based leverage ratio that includes off-balance sheet exposures will serve as a backstop to the risk-based capital requirement. Also helps contain system wide build up of leverage.
    • The impact of leverage and its calculation is shown in the picture of Figure 2.4.
    • Figure 2.4 - The impact of leverage (made by author)
    • Requirements on risk management and supervision.
    • Supplemental Pillar 2 requirements.
    • Address firm-wide governance and risk management; capturing the risk of off-balance sheet exposures and securitisation activities; managing risk concentrations; providing incentives for banks to better manage risk and returns over the long term; sound...
    • Requirements on market discipline.
    • Revised Pillar 3 disclosures requirements
    • The requirements introduced relate to securitization exposures and sponsorship of off-balance sheet vehicles. Enhanced disclosures on the detail of the components of regulatory capital and their reconciliation to the reported accounts will be required...
  • 2.4. National regulation
• 3. EMPIRICAL ANALYSIS
  • Banks of both countries – China and Russia use the same accounting standard IFRS (International Financial Reporting Standards) so in most situations comparison doesn’t require preliminary adaptation of the data to provide comparable content. The main ...
  • Here and after the Ryabtsev’s index will be taken as the measure of the structural identity. This index is applied to assess similarity of the processes taking place in different banks [35].
  • Ryabtsev’s index is calculated using the following formula (equation 22).
  • ,,К-рябц.=,,,,,,𝑑-2.−,𝑑-1..-2..-,,,𝑑-2.+,𝑑-1..-2..., #,22..
  • where d1 and d2 are the elements of the structures or indicators of the processes under consideration.
  • The values of the index are assessed using the scale shown in Table 3.1.
  • Table 3,1 – Interpretation of Ryabtsev’s index value (made by author)
  • As additional tool for comparison of statements ratios, it was suggested building the simplest regression models – pared linear regression models. The parameters of these models reflect the determined share of ratios and the level of determination all...
  • The paired linear regression model assumes a linear dependence [10] (equation 23).
  • ,𝑦 = 𝛼 + 𝛽𝑥 +𝜀, #,23..
  • where α, β are the model coefficients, x is the explanatory variable, regressor, y is the dependent variable, ε is a random term.:
  • 3.1. Analysis of structural identity of balance and income statements ratios and their dynamics
  • To compare the difference in the most general structural ratios two pairs of the leading banks were taken to consideration - Russian Sberbank and VTB, and Chinese ICBC and Bank of China.
  • 1. Analysis of the total debt structure ratio
  • Table 3.2 - Total Debt Structure Ratio, % (made by author)
  • We see that as of the end of 2023 the difference between the biggest and the smallest values constitutes 2.52%. All banks besides Bank of China increased debt structure ratio. The greatest growth in debt is shown by Russian leading bank – Sberbank who...
  • To compare step by step process of changes in debt structural ratio, Ryabtsev’s indices were calculated.Their values are shown in table 3.3.
  • Table 3.3 - Ryabtsev’s indices for debt ratios in dynamics (made by author)
  • The analysis shows very low level of difference in process of debt ratio changes between Sberbank and ICBC while difference in the processes is notable between the pairs Sberbank –VTB and Sberbank – Bank of China. The last pair shows the most noticeab...
  • It may be concluded that debt forming process is relatively similar in the leading banks of two countries, but Chinese banks differ one from another in greater extant the Russian.
  • 2. Analysis of the total liabilities structure ratio
  • Table 3.5 - Ryabtsev’s indices for liabilities ratios in dynamics (made by author)
  • 3. Analysis of the total asset structure ratio
  • Table 3.6 - Total assets Structure Ratios, % (made by author)
  • Table 3.7 – Ryabtsev’s indices of Assets structure in 2023 (made by author)
  • Table 3.8 - Long-term borrowing structure ratio (made by author)
• 3.3. Analysis of the reasons for the difference in the structural ratio and models
  • 3.2.1. Differences caused by different accounting objectives
  • 3.2.2. Differences caused by the different development of capital markets
  • 3.2.3. Influence of differences between cultural inheritance and application of accounting standards
• CONCLUSIONS
• Comparative analysis of the structural ratio of the financial statements of Chinese and Russian banks allowed working out policy suggestions for all distinguishing items: difference in accounting objectives, different development of capital markets, d...
• LIST OF REFERENCES