THE TRADE-OFF BETWEEN COMPETITION AND STABILITY IN THE BANKING SECTOR OF RUSSIA

Anna Kladova; Valeriy  Gordeev

Authors

Anna Kladova Central Bank of the Russian Federation
Valeriy Gordeev Yaroslavl State Technical University

Keywords:

bank competition, financial sector, competition paradigm, consolidation, state regulation

Abstract

The process of consolidation in banking until recently has been considered a sign of ineffectiveness of the market and thus a threat to its sustainability. The Global financial crisis has altered this view by causing significant structural shifts in banking worldwide with the levels of consolidation increasing in the banking markets of both the developed and emerging economies. The paper presents the results of a research of correlation between the consolidation process in the banking sector of Russia, strongly associated with the “comeback of the state”, and the sector’s sustainability

Author Biography

Anna Kladova, Central Bank of the Russian Federation

Yaroslavl branch

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