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Innovation management system as a factor in increasing the efficiency and sustainability of banks
This article investigates the impact of innovative activity on the efficiency and financial stability of commercial banks, considering institutional factors and the role of intangible assets. An econometric analysis of panel data from 13 systemically important Russian banks between 2010 and 2022, employing a fixed effects model, reveals that an increase in investments in intangible assets (a proxy variable for innovative activity) leads to a growth in interest and commission income, confirming the positive influence of innovation on bank profitability. The developed scenario analysis demonstrates that the systemic implementation of innovations ensures growth in equity capital, albeit accompanied by increased risks due to a larger proportion of borrowed funds. The findings suggest the necessity of developing a balanced innovation management system that accounts for risks and ensures the sustainable development of the banking sector.