Banking Sector Competition in Russia

36 Pages Posted: 20 Apr 2016

See all articles by Diego Anzoategui

Diego Anzoategui

Rutgers University

Maria Soledad Martinez Peria

International Monetary Fund (IMF)

Martin Melecky

World Bank

Date Written: October 1, 2010

Abstract

The Russian banking sector includes approximately 1,000 banks, but is it competitive? This paper analyzes bank competition in Russia during 2002-2008. The authors examine indicators of concentration and contestability, and compute non-structural measures of competition. They compare competition in Russia to that in Brazil, China, and India, and contrast competition across different groups of banks within Russia. Contestability in Russia is obstructed by uneven supervisory practices and an unclear exit process. Non-structural measures reveal that banks in Russia are less competitive than those in Brazil. Within Russia, large banks and state-owned banks exert more market power than the smaller and privately-owned institutions. Finally, business-oriented banks are more competitive than those concentrating on lending to individuals.

Keywords: Banks & Banking Reform, Access to Finance, Financial Intermediation, Financial Crisis Management & Restructuring, Emerging Markets

Suggested Citation

Anzoategui, Diego and Martinez Peria, Maria Soledad and Melecky, Martin, Banking Sector Competition in Russia (October 1, 2010). World Bank Policy Research Working Paper No. 5449. Available at SSRN: https://ssrn.com/abstract=1694928

Diego Anzoategui

Rutgers University ( email )

New Brunswick, NJ
United States

Maria Soledad Martinez Peria

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Martin Melecky

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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