'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

Abstract

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

Vernikov, Andrei V., 'National Champions' in Russia’s Banking Services Market (March 12, 2013). Problems of Economic Transition (2014) Vol. 57, No.4, pp. 3--25. DOI 10.2753/PET1061-1991570401, Available at SSRN: https://ssrn.com/abstract=2223686 or http://dx.doi.org/10.2139/ssrn.2223686

Andrei V. Vernikov (Contact Author)

Institute of Economics RAS ( email )

32, Nakhimovsky Prospekt
Moscow, 117218
Russia

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