Current Problems in the Development of the Banking System of the Russian Federation

20 Pages Posted: 18 Jun 2014

See all articles by Alexey Vedev

Alexey Vedev

Gaidar Institute for Economic Policy - Financial Research Laboratory

Sergey Drobyshevsky

Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration

Sergei Germanovich Sinelnikov-Murylev

Russian Foreign Trade Academy; Gaidar Institute for Economic Policy

Michael Khromov

Gaidar Institute for Economic Policy

Date Written: June 18, 2014

Abstract

In 2013 the situation in the banking sector of the RF underwent major changes. On the one hand, the volume indicators of the banking sector continued to grow, although more slowly than before. However, this growth was mainly due to aggressive behaviour of the banks in the consumer lending market, despite actions by the Bank of Russia aimed at reducing the attractiveness to the banks of such loans. On the other hand, there was an increased imbalance in the banking sector related to the non-uniform distribution of liquid funds, the outflow of customers from small and medium-sized banks to larger ones (principally to banks with government participation in their capital). This last factor was strengthened by the Bank of Russia’s efforts to rehabilitate the banking sector by withdrawing the licences of a significant number of banks, including those working in the market of private deposits. Within the framework of this policy of the Bank of Russia, aimed at reducing the number of banks and terminating the activities of any banks violating prudential standards, one should note the necessity for a more integrated approach to the reform of the sector, including measures aimed at increasing capitalisation, and the formation of an institute of systemically important banks with a reduction in the proportion of banks with government participation.

Keywords: Russian economy, banking system, central bank, capitalisation

JEL Classification: G21, G28, E5

Suggested Citation

Vedev, Alexey and Drobyshevsky, Sergey and Sinelnikov-Murylev, Sergei Germanovich and Khromov, Michael, Current Problems in the Development of the Banking System of the Russian Federation (June 18, 2014). Available at SSRN: https://ssrn.com/abstract=2456217 or http://dx.doi.org/10.2139/ssrn.2456217

Alexey Vedev

Gaidar Institute for Economic Policy - Financial Research Laboratory ( email )

3-5 Gazetny Lane
Moscow, 125009
Russia

Sergey Drobyshevsky (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

Russian Presidential Academy of National Economy and Public Administration ( email )

Varnadskogo Avenue,82
Moscow, 119571
Russia

Sergei Germanovich Sinelnikov-Murylev

Russian Foreign Trade Academy ( email )

4а Pudovkin str., Russia, Moscow, 119285
Moscow
Russia
+7 (499) 143-1235 (Phone)
+7 (499) 783-0263 (Fax)

Gaidar Institute for Economic Policy ( email )

5 Gazetny lane
Moscow, 125009
Russia
+7 (495) 629-4713 (Phone)

Michael Khromov

Gaidar Institute for Economic Policy ( email )

3-5 Gazetny Lane
Moscow, 125009
Russia

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