Evaluating the effectiveness of blockchain technologies in increasing the transparency of financial operations and reducing the operational risks of banking organizations

Abstract

The deployment of distributed ledger technologies in banking infrastructure is justified by references to higher operational transparency and lower losses, yet the quantitative relation between these two effects remains underdeveloped. The study measures the extent to which the shift to a record base shared among participants reduces the operational losses of a banking organization, and identifies the factors behind this effect. The calculation is performed on the author's model of a regional commercial bank for 2022-2026 using ratio, horizontal and structural analysis, factor decomposition by the chain substitution method, and scenario estimation of net present value. After the launch of distributed settlement reconciliation the incident rate fell from 742 to 389 units per million operations, while the ratio of operational losses to operating income declined from 1.92 to 1.18 per cent. The factor decomposition showed that the decisive contribution came from the fall in the incident rate, which offset the opposing growth in transaction volume and average severity. Transparency is realized primarily as a reduction in operations requiring manual coordination between counterparties, rather than as a separate managerial layer above the accounting circuit.