'National Champions' in Russia’s Banking Services Market
Problems of Economic Transition (2014) Vol. 57, No.4, pp. 3--25. DOI 10.2753/PET1061-1991570401
20 Pages Posted: 24 Feb 2013 Last revised: 14 Jul 2019
Date Written: March 12, 2013
This article assesses the effect of Russia’s industrial policy of growing “national champion” state banks, on concentration and competition in 2000–2010. An alternative method for estimating concentration shows that the main market segments have crossed the high-concentration threshold and that the market for individual deposits has approached monopoly conditions. State banks have additional market power resulting from their dominance and are actually able to collect rent that increases their profitability. We believe that with respect to banks, Russia’s industrial policy is similar to China’s.
Keywords: Russia, banks, state-owned banks, industrial policy, national champions, market structure, concentration
JEL Classification: G21, G28, L11, L13, P52
Suggested Citation: Suggested Citation