The country's banking system ensures the financial stability of the state. Its main task is to create favorable conditions for economic growth. Therefore, it is useful to know what the development of the banking system in Russia will depend on.
Despite all the assurances of politicians and banking officials, the question of the adequacy of regulation in terms of preventing a financial crisis remains open.
Getting rid of weak links
Over-regulation makes the banking system less flexible. As a result, bureaucracy increases and costs rise. As the modern client chooses reliability, weak players are gradually leaving the banking sector.
This phenomenon has a positive effect on the operation of the entire system as a whole. At the same time, the share of the main player should not be too large. Otherwise, he will have to shoulder all the problems of private banks to maintain a competitive environment in the sector.
Experts believe that the development of the domestic banking system will follow the traditional path. Consumer lending will act as a growth point. It has already shown good results.
The search for consensus between oversight and freedom of operation continues. This state helps rid the system of weak participants. Their complete displacement is planned within several years.
Of the two and a half thousand banks that existed in the 90s, a fifth remains today. But these are the largest institutions in the country. They contain about 80% of all assets. The Central Bank holds the rest, that is, 20%.
This situation confirms the lack of clients for lending. The returnable percentage is seven times higher in private financial institutions. Therefore, there is a need to support the private owner and the competitive environment. The reason is higher performance.
Full speed ahead
Economic growth could free the banking system from capital deficit and improve its health. However, experts are already wondering whether capital will be so important for the existence of banks in the future.
The system as a whole will be changed by technology. However, if we take credit risks as the main indicator of success, the situation will change dramatically. But capital is not needed when the institution's emphasis is on serving operational customers.
The presentation of the "Marketplace" project was held. Through it, clients will be able to receive all the most important financial services in one window mode.
4 products are involved in it: government bonds, deposits, corporate securities, OSAGO policies. "Marketplace" is focused on providing an opportunity to compare and purchase offers existing on the market. The work of the project is planned from the end of 2018.
The banking system is assigned the role of a redistributive, in other words, a circulatory system. Through it, payments are made between the population and the enterprise, temporarily free funds are poured in the form of loans. This contributes to the development of the economy.
Despite the duration of its formation, the domestic banking system lags behind European countries both in terms of capital and the degree of development. Therefore, it is necessary to study the experience of the development of banking in the country and abroad in order to introduce the most effective and progressive trends in doing business.
