The Impact Of Foreign Capital On The Russian Banking Sector

Abstract

This paper examines the share of foreign capital in the banking sector of Russia, analyzes its structure; considers the problems of the influence of foreign capital on the development of the domestic banking sector; identifies the factors contributing to the withdrawal of foreign capital from the domestic banking sector; proposes measures aimed at protecting national interests in the banking sector and maintaining the stability of the financial system as a whole. The positive and negative aspects of the expansion of foreign credit institutions in the national banking sector of the Russian Federation are considered. The assessment of competitive advantages of the foreign banks operating in the territory of the country in comparison with domestic commercial banks is given. The article reveals both positive and negative impact of foreign capital on the development of the banking sector. The features of the activity of banks with foreign capital, which were adopted as the main anti-crisis measures by the Central Bank of the Russian Federation, and the policy of foreign countries to place and attract investment in the banking system of foreign States. The directions for the growth of foreign investments in the Russian economy, especially in its banking sector, and increased confidence in foreign partners are identified.