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Has Banks’ Financial Intermediation Improved in Russia?

Author

Listed:
  • Fungachova, Z.

    (Institute for Economies in Transition (BOFIT), Bank of Finland, Helsinki, Finland)

  • Solanko, L.

    (Institute for Economies in Transition (BOFIT), Bank of Finland, Helsinki, Finland)

Abstract

The aim of this paper is to analyze the increasing importance of banks in the Russian economy over the period following the financial crisis of 1998. We use several measures to assess the role of banks in domestic financial intermediation in Russia. The traditional macro-level view is complemented by the analysis of sectoral financial flows as well as by insights from micro-level studies. All of these confirm that banks are becoming increasingly important in financial intermediation. We find that the scope and efficiency of intermediation by Russian banks has improved over time, but the level of banks’ financial intermediation still lags behind other countries with similar levels of income. Possible explanations for this include the dual nature of Russian financial system.

Suggested Citation

  • Fungachova, Z. & Solanko, L., 2010. "Has Banks’ Financial Intermediation Improved in Russia?," Journal of the New Economic Association, New Economic Association, issue 8, pages 101-116.
    • Handle: RePEc:nea:journl:y:2010:i:8:p:101-116
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    References listed on IDEAS

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    1. Anna Krupkina & Alexey Ponomarenko, 2015. "Balance sheet structure indicators and the financial cycle," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Indicators to support monetary and financial stability analysis: data sources and statistical methodologies, volume 39, Bank for International Settlements.

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    More about this item

    Keywords

    Russia; banks; financial intermediation; financial system;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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