A. B. Fiapshev, E. V. Travkina, V. V. Poznyakov. Transformation of the Structure of the Russian Banking Sector: The Impact on Regional Development

UDК 336.711

DOI: 10.15507/2413-1407.113.028.202004.695-722

Introduction. Inconsistency of the governmental regulatory impact on the socio-economic processes is one of the destructive factors in the increasing asymmetry of regional development. The decisions taken in the sphere of financial market regulation have provoked large-scale structural and quantitative changes in the banking system. The purpose of this study is to assess the impact of the occurred transformation on regional development and to analyze the possibilities of reducing gaps in the volume of banking services provided in Russia’s regions as well as in the level of their socio-economic development.

Materials and Methods. The study was conducted on the basis of data from the Central Bank of the Russian Federation and the Federal State Statistics Service. The results of the banking system transformation and the possible impact of the changes on regional development were assessed using the methods of scientific knowledge. When working with the empirical material, the methods of comparison, measurement and evaluation were used.

Results. The authors have identified gaps in the level of socio-economic development of Russia’s regions. For a long time, a number of regions have demonstrated limited opportunities for self-development and to fulfil their potential. The acuteness of this problem can be smoothed out by the tools of bank regulation (e.g. lending). After the decrease in the number of regional banks, the banking services market has seen steady signs of oligopoly with a marked decline in price competition. Negative effects of this decline have been increasing at the regional level.

Discussion and Conclusion. Regional socio-economic dynamics demonstrate high sensitivity to the reduction in the number of regional banks operating independently as well as to the decline in price competition in the banking services market. It is important that the regional component be taken into account in regulatory practices, including that applicable to the banking sector. Preservation of the regional segment of this system will help to solve a lot of problems at the local level and thus make a significant contribution to overcoming the gaps in the socio-economic development of the regions. The results of this study will be useful to managers of the Central Bank of Russia, as well as to regional and local authorities.

Keywords: regional development, regional differences, structure of the banking system, accessibility of banking services

Acknowledgments. The authors express their gratitude to the reviewers, whose comments and suggestions made it possible to improve the quality of the text.

The authors declare that there is no conflict of interest.

For citation: Fiapshev A.B., Travkina E.V., Poznyakov V.V. Transformation of the Structure of the Russian Banking Sector: The Impact on Regional Development. Regionology = Russian Journal of Regional Studies. 2020; 28(4):695-722. DOI: https://doi.org/10.15507/2413-1407.113.028.202004.695-722

REFERENCES

1. Gontmakher E.Sh. Russian Social Inequality as a Factor of Socio-Political Stability. Voprosy ehkonomiki = Issues of Economics. 2013; (4):68-81. (In Russ., abstract in Eng.) DOI: https://doi.org/10.32609/0042-8736-2013-4-68-81

2. Kuznetsova O.V. Pyramid of Factors of Regional Socio-Economic Development. Voprosy ehkonomiki = Issues of Economics. 2013; (2):121-131. (In Russ., abstract in Eng.) DOI: https://doi.org/10.32609/0042-8736-2013-2-121-131

3. Berger A., Humphrey D. The Dominance of Inefficiencies over Scale and Product Mix Economies in Banking. Journal of Monetary Economics. 1991; 28(1):117-148. (In Eng.) DOI: https://doi.org/10.1016/0304-3932(91)90027-L

4. Berger A.N., Hancock D., Humphrey D.B. Bank Efficiency Derived from the Profit Function. Journal of Banking & Finance. 1993; 17(2):317-347. (In Eng.) DOI: https://doi.org/10.1016/0378-4266(93)90035-C

5. Athanasoglou P.P., Brissimis S.N., Delis M.D. Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability. Journal of International Financial Markets, Institutions and Money. 2008; 18(2):121-136. (In Eng.) DOI: https://doi.org/10.1016/j.intfin.2006.07.001

6. Lozano-Vivas A., Pastor J.T. Do Performance and Environmental Conditions Act as Barriers for Cross-Border Banking in Europe? Omega. 2010; 38(5):275-282. (In Eng.) DOI: https://doi.org/10.1016/j.omega.2009.05.002

7. Lozano-Vivas A., Pastor J.T., Hasan I. European Bank Performance Beyond Country Borders: What Really Matters? European Finance Review. 2001; 5(1-2):141-165. (In Eng.) DOI: https://doi.org/10.1023/A:1012742232030

8. Lozano-Vivas A., Pastor J.T., Pastor J.M. An Efficiency Comparison of European Banking Systems Operating under Different Environmental Conditions. Journal of Productivity Analysis. 2002; 18(1):59-77. (In Eng.) DOI: https://doi.org/10.1023/A:1015704510270

9. Altunbaş Y., Liu M.-H., Molyneux P., Seth R. Efficiency and Risk in Japanese Banking. Journal of Banking & Finance. 2000; 24(10):1605-1628. (In Eng.) DOI: https://doi.org/10.1016/S0378-4266(99)00095-3

10. Berger A.N., Hasan I., Zhou M. Bank Ownership and Efficiency in China: What Will Happen in the World’s Largest Nation? Journal of Banking & Finance. 2009; 33(1):113-130. (In Eng.) DOI: https://doi.org/10.1016/j.jbankfin.2007.05.016

11. Mamonov M., Vernikov A.V. Bank Ownership and Cost Efficiency in Russia, Revisited. SSRN Working Paper Series. Social Science Research Network. 2015; No. 2574667. Available at: https://publications.hse.ru/en/preprints/144923440 (accessed 23.07.2020). (In Eng.)

12. Styrin K. What Explains Differences in Efficiency Across Russian Banks? EERC Working Paper Series 01-258e-1, EERC Research Network, Russia and CIS. 2005. Available at: https://ideas.repec.org/p/eer/wpalle/01-258e-1.html (accessed 23.07.2020). (In Eng.)

13. Pavlyuk D.V. Efficiency Model of Russian Banks. Prikladnaya ehkonometrika = Applied Econometrics. 2006; (3):3-8. Available at: http://www.appliedeconometrics.ru/r/articles/article/index.php?article_i... (accessed 23.07.2020). (In Russ., abstract in Eng.)

14. Demirgüç-Kunt A., Levine R. Financial Structures and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development. Cambridge, MA: MIT Press; 2001. Available at: https://www.amazon.com/Financial-Structure-Economic-Growth-Cross-Country... (accessed 23.07.2020). (In Eng.)

15. Mamonov M., Akhmetov R., Pankova V., Pestova A., Solntsev O., Deshko A. Identification of Financial Sector Optimal Depth and Structure from the Perspective of Economic Growth, Macroeconomic and Financial Stability. Dengi i kredit = Russian Journal of Money and Finance. 2018; (3):89-123. (In Russ., abstract in Eng.) DOI: https://doi.org/10.31477/rjmf.201803.89

16. Ponomarenko A., Sinyakov A. Impact of Banking Supervision on Banking System Structure: Conclusion from Agent-Based Modelling. Dengi i kredit = Russian Journal of Money and Finance. 2018; (1):26-50. (In Russ., abstract in Eng.) DOI: https://doi.org/10.31477/rjmf.201801.26

17. Ushakova Yu., Kruglova A. Competition in Russia’s Banking Sector Prior and After Supervision Police Enhancement: Conclusions Based on Interest Rate Dispersion and Spread. Dengi i kredit = Russian Journal of Money and Finance. 2018; (2):22-50. (In Russ., abstract in Eng.) DOI: https://doi.org/10.31477/rjmf.201802.22

18. Fiapshev A.B. Structural and Regional Characteristics of the Banking System as a Ramification of Differences in the Development of Russian Regions. Sovremennaya nauka: aktualnye problemy teorii i praktiki: Seriya “Ehkonomika i Pravo” = Modern Science: Actual Problems of Theory and Practice. Series “Economics and Law.” 2018; (8):78-85. Available at: http://www.nauteh-journal.ru/index.php/1/2018/%E2%84%9608/94cdb945-8fab-4743-884a-f4ceda477080?lang=ru_RU (accessed 23.07.2020). (In Russ., abstract in Eng.)

19. Fiapshev A.B., Kumekhov K.K. Socially Oriented Lending: Problems and Directions of Development in the Russian Banking Practice. Аktualnye problemy sotsialno-ehkonomicheskogo razvitiya Rossii = Topical Issues of Socio-Economic Development of Russia. 2018; (4):82-91. Available at: https://elibrary.ru/item.asp?id=36729672 (accessed 23.07.2020). (In Russ., abstract in Eng.)

Submitted 27.07.2020; accepted for publication 21.09.2020; published online 30.12.2020.

About the authors:

Alim B. Fiapshev, Professor, Department of Financial Markets and Banks, Financial University under the Government of the Russian Federation (49 Leningradsky Prospekt, Moscow 125993, Russian Federation), Dr. Sci. (Economics), ORCID: https://orcid.org/0000-0002-3045-827X, abfiapshev@fa.ru

Elena V. Travkina, Professor, Department of Financial Markets and Banks, Financial University under the Government of the Russian Federation (49 Leningradsky Prospekt, Moscow 125993, Russian Federation), Dr. Sci. (Economics), ORCID: https://orcid.org/0000-0002-0061-3427, evtravkina@fa.ru

Vitaliy V. Poznyakov, Head of the Department of Banking, Belarus State Economic University (26 Partizanski Ave., Minsk 220070, Republic of Belarus), Ph. D. (Economics), Associate Professor, ORCID: https://orcid.org/0000-0003-1810-4345, pozniakov@bseu.by

Contribution of the authors:

Alim B. Fiapshev – choice of research meth­odology; data analysis; evaluation of the results; drawing conclusions; formulation of proposals; critical analysis and revision of the text.

Elena V. Travkina – initiation of the study; statement of the research problem and identification of the main ways to solve it; preparation of the initial version of the text; collection, processing and analysis of information.

Vitaliy V. Poznyakov – search for and analysis of analytical materials in Russian and foreign sources; data structuring and analysis; visualization of data in the text.

The authors have read and approved the final version of the manuscript.
To download article