On the Issue of Developing Mechanisms to Reduce the Impact of Asymmetric Information on the Banking Services Market of the Russian Federation

Abstract

The article presents the results of a study to identify mechanisms to reduce the impact of asymmetric information on the Russian banking services market. It is shown that the asymmetry of information tends to increase due to the increasing digitalization of the banking sector of the economy market. Such a trend reduces confidential communication between participants in a lending transaction, entails greater risk and variability.One of the mechanisms to overcome the information asymmetry, which is manifested in the unfavorable selection of borrowers (individuals or legal entities) in the banking services market of the Russian Federation, is monetary regulation by the Central Bank of the Russian Federation. The refinancing rate is a powerful mechanism for eliminating the effect of “unfavorable incentive motivation”.The levels of monopolization and competition are determined through the Herfindahl-Hirschman index (HHI), which fixes the competitiveness of banks and their concentration ratio (CR). To understand the contribution of economic information to identifying the mechanism for reducing the impact of its asymmetry, thirty leading banks of the Russian Federation were analyzed in the context of changes in the level of their overdue debt (AR), which can be one of the indicators of information about the borrower. The results of the study can be used to minimize the effect of information asymmetry in the Russian banking market.