The Russian banking sector: new development trends

Abstract

The article examines the key trends in the banking system of the Russian Federation in 2017-2019. The efficiency of the use of domestic financial resources and the intensity of accumulation processes largely determine the level of socio-economic development of the state, which confirms the key role of banks and the banking sector in the development of the national economy. Although the Russian banking sector is experiencing rapid growth, it still does not reach a sufficient level of development of the competitive environment and market discipline, which negatively affects the quality of banking services. The aim of the study is a comprehensive analysis of current trends in the development of the banking sector of the Russian Federation over the past three years. During the study, comparison methods and economic and statistical methods were used. The tasks of the work are to identify existing problems in the Russian banking sector and its prospects. The result of this work was a study of key indicators of the banking system of the Russian Federation in 2017-2019. This study analyzed the dynamics of the number of credit institutions, financial results of the banking sector, as well as the volume of credits and deposits of legal entities and individuals. The main conclusion of the work was that despite the active development of the Russian banking system in recent years, there are still problems that need to be solved. Global processes and challenges, such as the coronavirus pandemic in 2020 and related restrictions, have a negative impact on the financial sector both in Russia and globally. This also includes foreign sanctions. In these circumstances, the subsequent development of the domestic banking sector will largely depend on the development of the situation with coronavirus and Russia’s diplomatic relations.