Indicators of financial security on the micro-level : approach to empirical estimation

The article suggests an original approach to economic security system indicators formation at micro level based on the assessment of changes in households’ living and financial behavior under economic crisis. An econometric implementation based on the triangular recursive system of equations is used with a multivariate probit model, dealing with unobservable individual heterogeneity, with the bias atributed to omitted variables and endogeneity. The estimation was performed according to the representative survey of the population “The Russia Longitudinal Monitoring Survey - Higher School of Economics (RLMS-HSE) (RLMS-HSE, 2017).peer-reviewe

Transforming the Regulation of Russian Financial Institutions: A Response to Modern Challenges of Money Laundering and Terrorist Financing

The paper reveals the approach to the regulation of Russian financial institutions, which is aimed at identifying their vulnerabilities to risks and building risk profiles for a set of interrelated risks. In the framework of this approach, the authors outline the concept of the relationship between the vulnerabilities of financial institutions and households to the risks of money laundering and terrorist financing, as well as a methodology for identifying the vulnerabilities of systemically important banks to these risks. As a result of the application of this methodology, three types of risk profiles of Russian banks were identified, their visualization was presented, and the corresponding vulnerability zones were specified. The authors formulated proposals for the mega-regulator of the Russian financial market and for systemically important Russian banks based on the regulation of financial institutions aimed at reducing their vulnerability to risks