Depositors' Assessment of Bank Riskiness in the Russian Federation
24 Pages Posted: 8 Feb 2008
In the period after the crises in the late 1990s, the banking industries in most emerging markets have undergone signiﬁcant restructuring consistent with the Basel II Accord. The Central Bank of Russia's efforts since 2000 have contributed to the consolidation and improvement of the banking industry. To measure the extent of market discipline in the Russian banking industry, we study the reaction of Russian depositors to excessive risk taking by large banks between 2000:1 and 2005:1. We ﬁnd that during our analysis period, well-capitalized, more liquid banks signiﬁcantly increase their deposits.
Keywords: Market discipline, Bank risk, Emerging markets, Russian Federation
JEL Classification: G20, G21
Suggested Citation: Suggested Citation