Current Tendencies of Improving the Russian Banking System
V V Moiseev, E A Karelina, I V Kirova, S N Glagolev
V V Moiseev
Available Online 17 March 2020.
- https://doi.org/10.2991/aebmr.k.200312.008How to use a DOI?
- Considering the stability and reliability of the banking system as a factor in the successful development of economic processes, the authors analyze the current trends in the recovery of the Russian banking sector and the prospects for its development. Analyzing the key financial indicators of the banking sector for the period 2016-2018, the authors identify the main reasons for reorganization of the Russian banking sector, classifying banks by types of banking risks. The authors provide statistical data on measures taken to improve the Russian banking sector by the Deposit Insurance Agency in 2008-2017 and also the data regarding overall dynamics of reducing the number of banks and license revocation in 2012-2018. Forecasting further reduction in the Russian banking sector in 2019 and following years, the authors distinguish three categories of banks that have the saddest prospects: 1) banks that have increased risks associated with compliance with the law on countering laundering of funds received from crime; 2) banks conducting high-risk lending policies, the loan portfolio of which is represented by knowingly non-performing loans; 3) banks that will voluntarily surrender a license due to the lack of prospects for business development. The authors note that it is becoming more difficult for medium and small banks to compete in the traditional segments of the banking market against the background of consolidation of the banking sector, so the number of licenses voluntarily surrendered is likely to grow. A small-scale banking business does not withstand rising costs and is forced to leave the market. In order to continue their activities and not to be reorganized, small banks will have to merge with other market players, or offer a new viable product on the banking market. The main role in mergers and acquisitions will be played by regional banks with a strong brand, a stable client base and an extensive office network. The beneficiaries of reducing the number of players in the market will be mainly banks with state participation, and to a lesser extent - large private banks.
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Cite this article
TY - CONF AU - V V Moiseev AU - E A Karelina AU - I V Kirova AU - S N Glagolev PY - 2020 DA - 2020/03/17 TI - Current Tendencies of Improving the Russian Banking System BT - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020) PB - Atlantis Press SP - 52 EP - 59 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200312.008 DO - https://doi.org/10.2991/aebmr.k.200312.008 ID - Moiseev2020 ER -