Assessing the Impact of Blockchain Technologies on Credit Risks in the Banking Sector of the Russian Federation

Abstract

Despite the very high interest on the part of international and national financial institutions, enterprises of the real sector of the economy in distributed data storage technologies, studies on the problems of assessing the use of the potential of blockchain platforms in the socioeconomic environment, their theoretical understanding can be met not so often. Existing works, as a rule, reveal either the technical side of the object of study, or the regulatory aspects of the applicability of blockchain technologies in the national economy. In this regard, in order to fill in questions revealing other aspects of the subject of the study, for example, such as an empirical assessment of the economic and social effects of the introduction of blockchain technologies in the activities of business entities, an attempt is made in this paper to overcome this conditional vacuum. The banking sector of the national economy of the Russian Federation was chosen as the object of research. The subject of the study is the relationship built between participants in the financial market on the basis of blockchain technologies, and the resulting effects expressed in the potential to reduce credit risks of banks due to non-fulfillment, untimely or incomplete fulfillment of financial obligations by debtors. In the course of the study, the main directions that reduce the risks under consideration, as a result of minimizing opportunistic models of behavior, are substantiated, possible economic effects for the Russian banking system as a result of the use of blockchain technologies are identified. The most important result of the work is the developed algorithm for determining the parameters for reducing the reserved capital for credit risks as a result of the penetration of blockchain technologies into the banking environment.

Supply Chain Finance and Blockchain in Operations Management: A Literature Review

“…[41] [ 16,18,19,41] Decentralization "On the contrary, we employ IPFS to store these data in a decentralized and distributed ledger that is publicly and globally accessible through the use of IPFS hashes." [41] [ 19,41,56,57] The decentralization feature of blockchain originates from a peer-to-peer distributed network, and all of involved entities with permission will be able to share and monitor the information related to invoice, auction, shipping, and payment in a transparent manner [41]. Transparency and decentralization can be leveraged to deal with the lack of trust among stakeholders, and trusted intermediaries can be eliminated under this structure.…”