Assessment of Russian banking system performance and sustainability

  • 55 Views
  • 5 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The paper estimates the problem of trust in the banking system, which remains significant in the context of development of Russian banking system. Data used in this article had been collected from Thomson Reuters as of July 2019. The paper reveals the major problem of banking system, which is the lack of long money coming into the financial system of Russian Federation. It comes, first, from the household sector, and secondly, from pension savings. The paper investigates most important internal and external factors, which influence both individual commercial banks and the whole banking system. The analysis of the institutional aspect of the regional banking sector development proves that multidivisional and differentiated structure of credit institutions has been set up in Russia, which, in the whole, meets the needs of customers. Also, the current stage of Russian banking system development can be characterized by serious influence of the global economic crisis. Under these conditions, the revocation of licenses from inefficiently functioning credit organizations is a positive fact that contributes to strengthening the stability of the banking system.

view full abstract hide full abstract
    • Figure 1. Growth dynamics of total assets (liabilities) of the banking sector, RUR bln
    • Figure 2. Growth dynamics of total assets (liabilities) of the banking sector, % of GDP
    • Figure 3. Loans and other placed funds provided to non-financial organizations and individuals, including overdue debts (RUR bln)
    • Figure 4. Loans and other placed funds provided to non-financial organizations and individuals, including arrears, % of GDP
    • Table 1. Factors of crises in the banking sector
    • Table 2. Macroeconomic indicators of the banking sector performance of the Russian Federation