To possible negative aspects of privatization of the Russian banks

Abstract

Subject. As Russia integrates into the world economy, it needs foreign investment, including the large-scale privatization of public property, especially in the banking sector. In the mean time, the process is coupled with positive effects, posing threats to the national security. Objectives. The study identifies and evaluates possible challenges and threats to the economic and food security, military capabilities and social tensions at the micro- and macrolevels, since the challenges and threats are associated with adverse effects of the privatization of the Russian credit institutions. Methods. The study is based on the dialectical method, systems approach, interpretation of empirical data and facts through charts and graphic representation. Results. I describe credit institutions with the prevalence of the State ownership, point out and analyze their economic and social role in the Russian economy. I reviewed foreign privatization practices in banking, including adverse effects on the economy. The article enlists potential threats to the national security that includes the sensitive data leakage, external governance of national processes, criminalization of administrative agencies, destructive activities of non-residents and failure to achieve economic results desired for the federal budget. I prepared and substantiate proposals on the privatization of banks, including the limit of stock portfolio, which can be sold without a detriment to the national security. Conclusions and Relevance. The prevailing shareholding of the State in the capital of some banks is importance for the stewardship of economic and social processes nationwide. The privatization should not entail the loss of the national sovereignty.