Russian Banking Sector Research Articles

Digital transformation of the Russian banking sector: Main development trends

Digital transformation of the Russian banking sector: Main development trends

Digital transformation of the Russian banking sector: Opportunities and risks

Digital transformation of the Russian banking sector: Opportunities and risks

The Role of Digitalization of the Economy in the Development of the Russian Banking Sector in a Competitive Environment

The Role of Digitalization of the Economy in the Development of the Russian Banking Sector in a Competitive Environment

Financial literacy of the population as a guarantee of economic security of the Russian banking sector

Financial literacy of the population as a guarantee of economic security of the Russian banking sector

Особенности государственного регулирования банковского сектора в России в условиях цифровизации экономики

The article is devoted to the peculiarities of state regulation of the banking sector in the Russian Federation in the context of digitalization of the economy. The article provides an assessment of the level of digitalization of the Russian banking sector, analyzes the possible risks of the digital economy and promising ways to overcome them using SupTech and RegTech technologies. The authors describe the digital ecosystem of the BEAC and its response to possible requirements from the regulator; assessment of the dynamics of the development of projects proposed by the Bank of Russia (Unified Biometric System, Fast Payment System, Digital Client Profile, Marketplace platform), as well as an analysis of the processes of implementation of these projects by Russian banks (using the example of Sberbank PJSC).

Реформация банковского сектора в интересах обеспечения защиты социально незащищенных слоев населения

Today, in the context of unprecedented aggressive sanctions pressure, the need to change the existing paradigm of providing banking services to the socially unprotected population is more urgent than ever before. Taking into account the unstable military-political situation, various measures should be developed to support socially vulnerable citizens for whom the availability of existing benefits is insufficient to meet basic needs. The banking sector in the vast majority of cases pursues private interests — obtaining maximum benefits from the provision of banking services while minimizing possible risks. In this regard, the use of a socially oriented approach is often not actively used in the banking sector. For example, many preferential lending programs for low-income citizens carry a high degree of risk, so banks have little interest in issuing loans and providing any benefits. That is why the state, as the main regulator of economic processes, must find parity between the interests of banks and ensuring the financial well-being of these categories of citizens. In a crisis, such a policy is of decisive importance for the whole society and the development of all sectors of the economy in the state. This article suggests some directions of possible reformations of the Russian banking sector in order to ensure the protection of socially vulnerable segments of the population.

Managing bank liquidity hoarding during uncertain times: The role of board gender diversity

AbstractThis paper examines the effect of executive board gender diversity on the relationship between economic policy uncertainty (EPU) and bank liquidity hoarding (LH). We focus on the Russian banking sector, which, relative to most of the world, has a high share of women on bank executive boards. Using the news‐based EPU index developed by Baker, Bloom, and Davis (2016) and LH measures proposed by Berger, Guedhami, Kim, and Li (2022), we exploit a unique dataset from the Russian banking sector. While higher economic policy uncertainty tends to increase liquidity hoarding, we find that this effect diminishes as the gender diversity of the board increases. We attribute this finding to the moderating influence of gender diversity on stability and overreaction in decision‐making. Additionally, we find that the channel through which board gender diversity affects the impact of economic policy uncertainty on liquidity hoarding takes place via the hoarding of liquid assets. Our findings are robust to the use of alternative measures for economic policy uncertainty and gender diversity and hold after addressing endogeneity concerns. As women are still significantly under‐represented on bank boards in most countries, these results argue for policies to promote gender diversity on bank boards as a means of limiting the detrimental effects of economic policy uncertainty.

Влияние санкционной политики на состояние банковского сектора России

Introduction. The banking sector is a key sector of the national economy and a growth factor, determining its efficiency and development prospects. Over the past year and a half, the national economy in general and the banking sector in particular have been adapting to the external negative impact of the sanctions policies of Western countries. Package sanctions were created on a regular basis and are used today to limit the development of the country in all areas. Theoretical analysis. The study identifies and substantiates the factors that ensure the relationship between the sanctions imposed by Western countries and the state of the banking sector of the Russian Federation. The basis for the Russian banking sector functioning is systemically important banks; in this regard, the influence of sanctions on their activities and mechanisms of adaptation to sanctions are of particular research interest. Empirical analysis. Statistical indicators of the banking sector, assets, lending to corporate clients and individuals, profits of the banking sector and credit organizations were analyzed, conclusions were drawn about successful adaptation to sanctions due to growth in indicators, high margins and a significant reduction in the cost of risk in comparison with 2022. Results. The process of the banking sector adaptation to sanctions pressure is presented and the reasons for its effective recovery are identified.

Features of the development of the Russian banking system in 1996-1999.

This work is devoted to the crisis quadrennial of 1996-1999 in the history of Russia and the relationship with the changes that have occurred in the Russian banking system. The author identifies two stages in the development of domestic banking: its formation in 1991-1995, which ended with the exit from the August crisis of 1995, which showed that the banking system has not yet adapted to the requirements of market reality. The second stage was the crisis four–year period of 1996-1999, the peak of which was the default and devaluation of the ruble, as a result of which the main activity of banks turned from participating in a speculative game to working with the real sector of the economy and the population. As part of the study of the second period, the author, among other things, considers the issue of anti-crisis measures taken by the Government of the Russian Federation. The author analyzes a large layer of sources and bibliographies, actually building a chronology of the development of the banking sector in Russia in 1996-1999. The novelty of this work consists in the fact that until now there are practically no generalizing historical works about the history of the banking system of Russia in the Russian historiography. The author comes to the following key conclusions: as a result of the 1998 crisis, in which there was a collapse of government securities, which are the basis of both speculative activities of credit institutions and collateral for their resource base, the banking community began to focus mainly on working with the real sector of the economy and the needs of the population. During the period under review, a reform of the banking system was carried out, including the establishment of a set of strict banking standards and reporting that serve to increase the reliability of credit institutions and the possibilities of effective regulation of their activities, and the elimination of the technical backlog of the Central Bank in the automation of control and payment spheres was carried out.

ТЕНДЕНЦИИ РАЗВИТИЯ ЭФФЕКТИВНОСТИ КОРПОРАТИВНОГО КРЕДИТОВАНИЯ

This article presents the definition and essence of corporate lending, as well as its impact on the Russian banking sector. The analysis of corporate lending for several periods, where there were serious shocks to the national economy, including the banking sector, was carried out. The detailed dynamics of corporate lending volumes for 2023 is presented and evaluated, and relevant conclusions are drawn that, despite the gradual recovery of the banking sector, there are still shortcomings and problems in the development and effectiveness of corporate lending.

The Impact of the New Economic Sanctions of the Collective West Countries on the Russian Banking Sector

The Impact of the New Economic Sanctions of the Collective West Countries on the Russian Banking Sector

Концентрация на региональных рынках кредитования населения России в условиях роста цифровизации банковских услуг

Due to the dominance of the largest banks, the issue of increasing concentration and monopolisation of the Russian banking sector is discussed in regards to the competition in the industry. The Bank of Russia set the task to increase competition and reduce concentration in the financial sector, including at the regional level. This task can potentially be solved using new financial technologies, digital banking services and remote access technologies. The paper aims to assess the dynamics of concentration in local consumer loan markets in 2015–2021, as well as to answer how new financial technologies and digitalisation can increase competition in the banking sector at the regional level. The study calculated concentration indices and number of banks in consumer loan markets of Russian regions and the country as a whole. To this end, data from the website of the Bank of Russia, both for the retail loan market and the housing loan market, were analysed. The findings show that concentration indices did not decrease during this period. Simultaneously, the regional average number of banks issuing consumer loans decreased less than the total number of banks due to the entry of some banks into new regional markets. This means that the expansion of remaining banks to more regions, including through digitalisation and remote methods, has the potential to increase competition in the industry. However, at this point, only few consumer loans and deposits were provided by banks that do not have branches in a given region. Therefore, there is little evidence to suggest that new financial technologies are already increasing competition in the banking sector of Russian regions.

ОСНОВНЫЕ НАПРАВЛЕНИЯ ДЕЯТЕЛЬНОСТИ МЕЖДУНАРОДНЫХ И РОССИЙСКИХ ИНВЕСТИЦИОННЫХ БАНКОВ И ПЕРСПЕКТИВЫ ИХ РАЗВИТИЯ

The article discusses the main activities of international and Russian investment banks, as well as the prospects for their development. Some areas of the Russian banking sector have been developed based on foreign experience, which mainly affect the sustainability and development of investment activities. The main problems of attracting long-term capital to the banking sector have been identified. The study revealed that despite the existing shortcomings in investment activity, there is great potential in the banking system. Every year we see an increase in conditions for investment banks in the Russian market, therefore, directions based on foreign experience will make the investment activities of banks the most effective.

БАНКОВСКИЙ СЕКТОР РОССИИ: АНАЛИЗ ТЕКУЩЕГО СОСТОЯНИЯ

This article provides an analysis of the Russian banking sector. It is noted that it is the most important economic institution for the development of the state. The growth rates of lending in various fields, as well as the growth rates of fundraising, are given. To date, the entire Russian economy has faced external geopolitical shocks, so the issue of adapting different sectors to the realities of the current situation is becoming the most urgent. The role of commercial banks in the economy is difficult to reduce, they are in many ways sources of financing for businesses. This ensures the economic growth of the national economy.

Практика применения инструментов макропруденциального регулирования Банка России

The types and classifications of tools of macroprudential regulation of the Bank of Russia, their purpose in maintaining the financial stability of the state and reducing systemic risks are considered. The performance indicators of the Russian banking sector are analyzed, reflecting the results of using macroprudential regulation tools of the Central Bank of the Russian Federation. The authors’ conclusions are formulated on the directions of development of macroprudential regulation of the Bank of Russia in relation to the country’s banking sector.

Влияние цифрового рубля на банковский сектор

The influence of the digital ruble on the Russian banking sector is analyzed. The study of a new form of digital currency being developed by the Central Bank is becoming increasingly relevant, since the forecasts of economic scientists are ambiguous and vague. The level of demand for the digital ruble, its main characteristics, potential risks and scenarios of functioning in financial markets are considered.

Механизм реализации цифровой ипотеки в практике российских коммерческих банков

Mortgages for banks are not a highly profitable product, but they are a tool that allows you to expand your cus-tomer base to further offer higher-risk and profitable banking products. Therefore, it is important to develop this loan product, strive to make it more convenient for the client, and develop mortgage programs, including gov-ernment programs aimed at supporting the construction sector. The article discusses the theoretical founda-tions of the implementation of digital mortgages in the activities of commercial banks and its regulatory and legal regulation. The analysis of the dynamics of mortgage housing lending in the practice of Russian banks for 2021–2023 is carried out and the role of the introduction of digital technologies into this practice is determined. The mechanism of digital mortgage implementation is revealed. The features and distinguishing features of a digital mortgage compared to a conventional mortgage are also highlighted. The factors hindering the devel-opment of digital mortgages in the Russian banking sector at the present stage were identified, and measures to reduce them are proposed.

Кредитный портфель российского банковского сектора в условиях экономической неопределенности

The article presents the results of the study of the impact of anti-Russian sanctions and uncertainty factors of the economic system on the volume of the loan portfolio and overdue debt, the growth rate of bank assets and loans, the cost of credit risk. A comparative analysis of the growth rates of the loan portfolio of the Russian banking sector for the first half of 2020, 2021 and 2022 was carried out. The. economic effect of the anti-Russian sanctions and structural changes in the economy on the dynamics of problem loans and financial results of the banking sector has been revealed. The growth rate of the loan portfolio is given depending on the form of lending.
 The main factors of credit risk occurrence and methods of its management are determined. As a result of the study, conclusions were formed about the further restoration of the Russian banking system and the prospects for the development of the credit market.

Investment Attractiveness and Grinium Effect of Green Securities of the Russian Banking Sector

One of the main ways for banks to implement activities within the ESG agenda is to issue green securities, the proceeds of which go to finance environmental projects. In turn, the nature of investments is reflected in the so-called discount on greenness or the greenium effect, which may scare away a potential investor. But the situation is different in the emerging green bond market in Russia. In this regard, an analysis of the main characteristics of green bonds of the Russian banking sector, as well as an assessment of their investment attractiveness in comparison with instruments of the classical type, offers an effective tool for the formation of long-term capital aimed at implementing the concept of sustainable development.

Economic security of credit organizations in the context of growing digital risks

This article partially discusses the results of the author's dissertation research. The subject of study of this article is the methods of measuring and managing risks associated with digitalization in the context of improving economic and information security of the bank. The digital transformation of commercial banks involves not only updating technology, but also rethinking banking and creating a more customer-centric experience based on digitalization tools. By embracing digital transformation, banks can optimize operations, improve security and provide their customers with the services they need when and where they need them. The study of existing features of commercial banks' business processes, changing digital space and risks allowed the author to establish the relationship between economic security, information security and digital risks. The role of the digital risk management subsystem was identified and the types of digital risks of the bank were studied. The study of the possibilities of applying the existing methodologies for assessing the risks of a credit organization to the changing external environment and digital space surrounding modern banks has shown that for the most part they are applicable to risk assessment in the implementation of adaptation. The practice of risk management in banks requires identification and classification of digital risks, strategies to mitigate the identified risks adapted to the digital space. The author's methodology for assessing and minimizing the digital risks of a credit institution is proposed, which makes it possible to determine the type of digital risk on the basis of input and output variables and develop a possible managerial decision to minimize the risk. Based on the approbation, the author identifies digital risks for three Russian banks with the largest digital presence in the Russian banking sector.