Sustainability of the regional financial system: a case study of the Northwestern Federal District

Sergey Evgenievich Barykin; Alexey Aleksandrovich Mikheev; Elena Grigorievna Kiseleva; Yuriy Evgenievich Putikhin; Elena De La Poza Plaza; Natalia Sergeevna Alekseeva

doi:10.12688/f1000research.123197.2

Sustainability of the regional financial system: a case study of the Northwestern Federal District

F1000Res. 2022 Aug 8:11:908. doi: 10.12688/f1000research.123197.2. eCollection 2022.

Authors

Sergey Evgenievich Barykin¹, Alexey Aleksandrovich Mikheev², Elena Grigorievna Kiseleva³, Yuriy Evgenievich Putikhin⁴, Elena De La Poza Plaza⁵, Natalia Sergeevna Alekseeva³

Affiliations

¹ Graduate School of Service and Trade, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation.
² Moscow State Institute of International Relations (University), Ministry of Foreign Affairs of the Russian Federation, Moscow, Russian Federation.
³ Graduate School of Industrial Management, Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation.
⁴ Department of Management, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.
⁵ Center for Economic Engineering (INECO), Universitat Politècnica de València, Valencia, Spain.

Abstract

Background: This article provides an assessment of the sustainability of Russian regions' financial systems. The study is based on the methods of generalization and synthesis, correlation-regression analysis, and multivariate classification. Since the structure of the regional financial system is complex, several works are devoted to studying its sustainability issues. The relevance of the study topic is confirmed by the lack of a systematic approach to assessing the integral index of sustainability and the possibility of using various tools in determining the complex indicator. Methods: This methodology with application of mathematical statistics methods makes it possible to assess the financial system sustainability in four sectors, to include the leading indicators in the assessment, and to identify regions with extreme values of debt burden indicators. The method was tested for the regions of the Northwestern Federal District (NWFD) for the period 2010 - 2019 to classify the regions according to three levels of debt sustainability. Data collection from the 1 ^st January to 30 ^th April 2022 included statistical data from government open internet sources, sectors studied relate to government, and municipal budgets in the NWFD. Authors analyzed regional debt sustainability indicators and identified themes in the field of sustainability studies for the NWFD. Results: An increased level of financial system sustainability was observed among the NWFD regions in the corporative and personal finance sectors, indicating a significant contribution of businesses and households to maintaining the balance and sustainability of the financial system in Russia as a whole. The results of the study also identified that the NWFD regions belong to three clusters: cluster 1 - high debt sustainability; cluster 2 - medium debt sustainability; and cluster 3 - low debt sustainability. Conclusions: The study results allowed the identification of regions with a constantly high level of debt, financial, and corporative sustainability.

Keywords: Financial Stability; Integral Index; Regional Financial System; Regions of Russia; Indicators; The Northwestern Federal District.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

Data Collection*
Regression Analysis

Associated data

figshare/10.6084/m9.figshare.20278098.v1

Grants and funding

The research of E.G.K., S.E.B, and N.S.A. is partially funded by the Ministry of Science and Higher Education of the Russian Federation under the strategic academic leadership program 'Priority 2030' (Agreement 075-15-2021-1333, dated 30.09.2021).