scholarly journals Study of competition in the regional banking sector of Russia

2021 ◽  
Vol 15 (2) ◽  
pp. 29-38
Author(s):  
Alexander P. Tsypin ◽  
◽  
Alina A. Orlova ◽  
Keyword(s):  
Capital Market ◽  
Business Processes ◽  
Banking Sector ◽  
Banking System ◽  
Competition Analysis ◽  
Regional Aspect ◽  
Analysis And Synthesis ◽  
Key Indicators ◽  
The Capital Market ◽  
Credit Institutions

The competitive environment in the banking sector encourages the production of new banking products, which brings additional benefits to consumers of banking services, but in Russia, in the regional aspect, there is a significant problem that requires detailed consideration, consisting in the concentration of the bulk of bank assets in the hands of a narrow circle of credit organizations. In this regard, we believe that the chosen topic of the study is relevant and timely. The purpose of the study is to quantify and qualitatively interpret the level of competition of credit institutions in the regions of Russia. To achieve the goal, the following were used: a method of comparison, analysis and synthesis, mathematical and statistical methods. The main results include the following: a trend towards a decrease in the number of credit institutions has been identified since 1996, which is caused by the policy of the Central Bank of the Russian Federation to improve the banking sector, as well as high competition; analysis of the dynamics of key indicators of the banking system showed that despite economic sanctions from Western countries, stagnation of the domestic economy after the crisis of 2014, changes in business processes and the way of life of people in connection with the pandemic of the Covid-19 virus, credit organizations in Russia make a profit from year to year. This pattern indicates their high adaptability to changes in the external environment; spatial analysis of indicators characterizing the activities of credit institutions revealed a significant concentration of capital in two entities, this is Moscow and St. Petersburg, thus it is possible to confidently assert the monopolization of the capital market in Russia. The results will be useful to researchers in the field of competition, the capital market and the banking sector, as well as employees of credit organizations in the formation of a strategy for the development of banks.

scholarly journals THE ALBANIAN ECONOMY IN THE STOCK MARKET PERSPECTIVE

2019 ◽  
Vol 31 (1) ◽  
pp. 149-155
Author(s):  
Bajram Lamaj ◽  
Stefan Simeonov
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Banking Sector ◽  
Stock Exchange ◽  
Banking System ◽  
Financial System ◽  
Economic Benefits ◽  
Stock Index ◽  
Individual Investors ◽  
The Capital Market

Since the origin of the capitalist economic system, Albania suffers from a shrinking financial system. The financial system lacks what is perhaps the most important and dynamic part in developed economies: a capital market. It is an important element for the country's economic and financial development, as it is a very competitive alternative to the banking sector, reducing intermediation costs for businesses and all economic operators by enabling cheaper alternatives to fund the activity. Today, the banking system has almost exhausted opportunities to be a business financing promoter. And this is the stage where the Albanian economy has come to. Businesses cannot meet all the financing needs of the banking system, while on the other hand, there are individuals who, at the moment, have little choice of investment of their savings. Interest rates, both for bank deposits and government securities, have already reached an extremely low level and are not at all attractive for individual investors, which makes them look for far more attractive investment alternatives. In this way the scholarship will bring an alternative that individuals can invest savings in shares or other securities of companies that will be interested in trading in Albania thus developing the capital market and taking advantage of all the economic benefits that it brings. In this paper, we will firstly address the concept of the capital market and the elements that shape it as well as its development in Albania. The main purpose of this paper is to identify the problems faced by Tirana's former scholarship, to study the situation and the current opportunities of the Albanian economy to develop this structure of the capital market, namely the stock exchange, and to create a stock index model with which Albania can develop this structure and why not be represented in the regional and international markets.

scholarly journals BANKS OF THE CASPIAN REGION COUNTRIES IN THE BANKING SYSTEM OF RUSSIA: CURRENT TRENDS AND DEVELOPMENT PROBLEMS

2019 ◽  
Vol 8 (3) ◽  
pp. 7-28
Author(s):  
Olga Viktorovna Bogacheva ◽  
Oleg Alekseevich Lepekhin
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Operating Efficiency ◽  
Caspian Region ◽  
Banking Systems ◽  
Internalization Process ◽  
Business Entities ◽  
Credit Institutions

The mutual penetration of capital from one country into another has become a characteristic feature of the world financial system. This is largely due to the current globalization processes in the global economy, the continuous development of banking technologies, the need to maintain foreign economic activity of business entities and the rationale for expanding the scales of business activity as a tool to increase operating efficiency. The purpose of the article is to study the current internalization process in the banking systems of the Caspian region countries in terms of the penetration of the banks from the Caspian region countries into the Russian banking sector. Methodology. We have identified the sample of the Russian credit institutions fully controlled by the shareholders from the Caspian region states. Using the data, presented in turnover balance reports (Form 101), we have calculated key performance indicators in 2015–2018. We used the Bank of Russia’s practice to estimate the aggregate balance sheet of the 30 largest credit institutions as the basis for our algorithm. We have analyzed tendencies in funding base, structure of assets and operating efficiency. Results. The analysis of the financial statements shows that within the chosen business model, the banks of the sample are more likely to focus on international financial settlements, servicing foreign trade transactions, than on traditional types of banking business such as lending to non-financial enterprises and individuals. Their performance is significantly lower than the industry benchmarks, which so far does not allow us to expect an increase in their scale of presence in the Russian market in the near future. Practical implications. The analysis of current processes in the field of internationalization of banking systems can be used to assess the financial and economic integration of the countries of the Caspian countries and to develop corrective measures aimed at its further development and deepening.

scholarly journals Legal support of Ukraine in the context of attracting capital by banks in international m

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Olena Yu. Volkovych ◽  
Keyword(s):  
European Union ◽  
Economic Crisis ◽  
Capital Market ◽  
Banking Sector ◽  
Public Information ◽  
Commercial Banking ◽  
The State ◽  
The European Union ◽  
Association Agreement ◽  
The Capital Market

The article provides a theoretical and legal analysis of the legal support of Ukraine in the context of raising capital by banks in international markets. The author determined that the economic crisis in the country is protracted, the capital market in Ukraine remains largely underdeveloped. The state has taken many steps to overcome the economic crisis, identified priority measures, strategic steps to build a sustainable economy, in particular, many efforts have been made to find free funds to attract investment, but this, as practice shows, was not enough. An important step in building a free and competitive state was the adoption of the Association Agreement between Ukraine and the European Community. This document is the largest international legal document in the history of Ukraine and the largest international agreement with a third country ever concluded by the European Union. In accordance with the Program of Integration of Ukraine into the European Union (hereinafter - the Program), approved by the Decree of the President of Ukraine � 1072/2000 of 14.09.2000. Synchronization of internal market transformations of changes in the processes of EU enlargement. First of all, it concerns: reform of executive and judicial bodies and cooperation of the Ministry of Justice of Ukraine with courts; administrative and territorial reform; formation of the foundations of regional development policy (including legislation on the distribution of competencies, budgets, taxes); completion of privatization (primarily enterprises of strategic importance for the economy and security of the state and banks); reforming the banking sector as a whole. Thus, in particular, a developed capital market is usually seen as a competitor in the commercial banking sector, as they compete for retention and investment opportunities. However, in today�s financial system, there are complementary relationships between the capital market and banks, as they choose different segments of the financial markets and focus on different types of customers. In the process of writing the article came to the following conclusions. The right direction in the reform of the economic sector is to determine the measures of state investment support should be preceded by a detailed analysis of the effect of the benefits and preferences previously granted to economic entities. Establish the legislative level the provision that the minimum amount of public investment should be equal to the amount of all new debt, i.e., the amount of borrowings during the year may not exceed the amount of budget expenditures to finance investments. Introduce the practice of developing and implementing investment incentive packages. Introduce a practice in which the decision on new borrowings is preceded by public information on which projects have already been used to finance the funds and for which purposes (projects) new borrowings are envisaged. Establish strict control over debt activities.

scholarly journals Investment policy of the banking sector: data from Russia

2021 ◽  
Vol 10 (42) ◽  
pp. 149-162
Author(s):  
Alexei Zverev ◽  
Victoria Mandron ◽  
Tatiana Rebrina ◽  
Maria Mishina ◽  
Yulia Karavaeva
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Investment Policy ◽  
Investment Portfolio ◽  
Investment Activity ◽  
Composition And Structure ◽  
High Volatility ◽  
Investment Portfolios ◽  
Credit Institutions

The growing investment activity of banking sector organisations is an important condition for securing diversification of assets and obtaining additional sources of income, as well as maintaining the required level of liquidity. Economic crises and instability of stock markets affect the investment policy of a bank, the quality of its investment portfolio, and the scope of investment transactions with securities. The purpose of the research is to carry out a comprehensive analysis of the investment mechanism of the Russian banking sector and its organisation, to characterise the investment policy and risks connected with investment activities, to determine the criteria for financial instruments included in the structure of investment portfolios of Russian credit institutions. The authors used the analytical, regulatory, comparative, and statistical methods of research to define the dynamics, composition, and structure of investment portfolios and risks involved in the business of financial and credit institutions, in the course of the formation of investment policy. It was concluded, as a result of the research, that enhanced performance, stability, and liquidity of credit institutions were conditioned by the structure and quality of portfolio investments. Improving the efficiency of the banking investment mechanism is a priority area of development, for strengthening the competitive positions of credit institutions in the national banking system. The article presents conclusions regarding the quality of investment operations and transactions with securities effectuated by banks at the present stage. The authors undertook a comparative analysis of indicators characterising the structure of investment assets of the banking sector, grouped by types of investment portfolio. Proceeding from the above, particular directions were developed for practical use, that allow for efficient selection of stock market instruments for inclusion in the investment portfolio of credit institutions in the conditions of high volatility and uncertainty of the financial market.

scholarly journals The Evolution of the System of Management of Business Processes in Credit Institutions

2019 ◽  
Vol 2019 (1) ◽  
pp. 106-112
Author(s):  
Павел Крюков ◽  
Pavel Kryukov ◽  
Валентина Крюкова ◽  
Valentina Kryukova
Keyword(s):  
Business Process ◽  
Management System ◽  
Business Process Management ◽  
Structural Changes ◽  
Process Management ◽  
Business Processes ◽  
Banking Sector ◽  
Banking Industry ◽  
Legal Entities ◽  
Credit Institutions

The paper features the main trends in the technological development of the banking industry in the Russian Federation. The tendencies determine the prospects of structural changes in the banking sector at the basic level in the near future. The article describes the probable consequences of intensive introduction of technological innovations in traditional banking from the point of view of changes in infrastructure on a national scale. It includes a review of new financial technologies in the banking industry, reflecting the evolution of the business process management system in credit institutions, based on the changes in their infrastructure. The research is conducted from the position of personal practical experience of the author. It concentrates business processes in credit institutions (banks) in terms of processing credit applications of legal entities and individual entrepreneurs. The expansion of the conceptual and categorical apparatus of the field of banking is considered from the position of introduction of new information technologies. The authors propose an image of the future business process management system in banking organizations. They describe the tasks facing the management of a credit institution concerning the structural and qualitative changes in the business process management. Its basic principles include removal of all stages of lending to legal entities outside the regional infrastructure; revision of risk management; introduction of scoring algorithms in the risk assessment of a potential credit transaction. All these aspects can be interesting and promising subjects for further research.

scholarly journals Adjustment of prudential norms, determining vector of the banking sector development

Upravlenie ◽  
2020 ◽  
Vol 7 (4) ◽  
pp. 32-43
Author(s):  
N. V. Gryzunova
Keyword(s):  
Internal Control ◽  
Business Models ◽  
Banking Sector ◽  
Banking System ◽  
System Reform ◽  
Banking Supervision ◽  
Interest Rate Policy ◽  
Credit Line ◽  
Russian Economy ◽  
Credit Institutions

Currently, the Bank of Russia carries out radical reforms in the administration system of banking supervision and regulation. You can observe the interaction between monetary policy and macro prudential policy. The purpose of the traditional regulator is protection of investors', shareholders', customers' capital. The main problem of the Russian economy is the shortage of investment and working capital from non-credit institutions and the difficulty to get a foothold lending. The main objective of the banking system reform is to create additional sources of investment for non-credit institutions. The tightening Supervisory requirements although eliminate the total bank risks, but reduce business activity and agility of the banking system. The curve of investment demand in the Russian economy is flat, that characterizes the low profitability of investments and the weak dependence on interest-rate policy. In this connection, it has been suggested to consider investment companies as the main criterion of competitiveness and the main argument in decision-making about granting a credit line.The feasibility of the allocation of investment criteria in the monetary rule has been shown in the article. The urgency proportional distribution of regulatory indicators of banking supervision by tier banking system, which are formed from the pacing of functional and regional specificity, – has been substantiated. The mechanism of price stability based on the clustering of financial institutions has been offered. It has been suggested to use the investment criteria as justification for a transfer service of non-bank organization to another bank cluster. Possible trends and implications of key planned reforms of the banking system including the bank's tier and the distribution tier of powers and functions have been analysed.Due to measures of preventive supervision and bank clustering, it is possible to expect regional market segmentation, improving the effectiveness of internal control systems, based on the distribution of the control functions in bank tiers, simplify management and risk reduction in accordance with the profile of the company and the level of the bank's operations. It has been proved in the paper that a focused segmentation of the credit market allows us to reduce the credit risks for banks, as well as to link market characteristics with the business models of each cluster.

scholarly journals INCREASING EFFICIENCY OF THE BANKING INSTITUTIONS ACTIVITY

2018 ◽  
pp. 92-103
Author(s):  
Zhanna DOVHAN
Keyword(s):  
Customer Service ◽  
Business Processes ◽  
Banking Sector ◽  
Banking System ◽  
System Optimization ◽  
System Structure ◽  
Loyalty Programs ◽  
Effective Work ◽  
Banking Activity ◽  
Banking Institutions

Introduction. The problems of banking efficiency improvement have become very important in the conditions of economic instability and the period of increasing competition in banking services market. It is being changed both the banking system structure, and the business processes which were formed in it. Such changes demand the new approaches to reserves searching and banking system optimization objects. The innovation in the banking sector, methods of innovative bank development are the main in modern conditions. The purposeof this article is to identify the need to develop and apply innovative approaches in banking institutions to ensure their effective operation. Results. The article deals with the theoretical and practical principles of ensuring the efficiency of banking activity. It is characterized the main tendencies of the risk manifestation violation of banking activity efficiency. The trends of an effective development and the long-term growth of banking sector nowadays are described. The ways of formation and implementation of the innovative aspects of bank effective work providing system are analyzed. Special attention is paid to the importance of the cooperation between banks and financial companies. Conclusions. The problems of the banking system providing efficiency can be addressed customer service innovative technologies and the new products and services implementation, such as: to use the advanced hardware and software, to increas efficiency of personalization and channel optimization, digital and biometric identification, to use the large data, intellectual property and expanded analytics, credit marketplays, and artificial intelligence, to improv integrated multi-channel delivery and new loyalty programs.

scholarly journals INFLUENCE OF MODERN FINANCIAL TECHNOLOGIES ON THE INSTITUTIONAL STRUCTURE OF THE RUSSIAN BANKING SYSTEM

2019 ◽  
pp. 143-148
Author(s):  
A. V. Berdyshev
Keyword(s):  
Regression Model ◽  
Banking Sector ◽  
Banking System ◽  
Institutional Structure ◽  
Mobile Technologies ◽  
The Internet ◽  
Structural Units ◽  
The Impact ◽  
Credit Institutions

The conditions, that stimulate the development of financial technologies in the banking sector, as well as the main directions of development of mobile technologies in the banking sector, have been defined. Based on the construction of a regression model, the impact of the development of mobile technologies on the institutional composition of the Russian banking system has been assessed, indicating, that with increased usage of the Internet and mobile technologies in the process of making customer payments, the number of internal structural units of existing credit institutions is reduced.

scholarly journals What future for the European banking system?

2018 ◽  
Vol 87 (4) ◽  
pp. 141-151
Author(s):  
Lorenzo Bini Smaghi
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Banking Sector ◽  
Banking System ◽  
The Us ◽  
Low Interest Rates ◽  
European Banking ◽  
European Banks ◽  
Main Factors

Zusammenfassung: Das Papier beleuchtet die Hauptgründe, die der sinkenden Rentabilität des europäischen Bankensektors im Vergleich zum US-amerikanischen zugrunde liegen. Sie unterstreicht insbesondere die Rolle niedriger Zinsen, geringerer Konzentration, strengerer Regulierung und des Fehlens eines tiefen und liquiden Kapitalmarktes. Ein stärkeres europäisches Bankensystem erfordert echte gesamteuropäische Banken und eine echte Kapitalmarktunion. Summary: The paper assesses the main factors underlying the decreasing profitability in the European banking sector, in comparison with the US. It underscores in particular the role of low interest rates, lower concentration,tighter regulation and the absence of a deep and liquid capital market. A stronger European banking system requires true pan-European banks and a true capital market union.

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