Banks play a huge role in today's market economy. A reliable banking system is essential for the stable functioning of the economic system.
Internal problems of the Russian banking system
The problems of the Russian banking system can be divided into two groups - external and internal. The latter are associated with low qualifications of the bank's management, ineffective management of its assets and liabilities, inconsistency of the management system with the bank's functions, and frequent abuse of authority.
Thus, today many banks are highly dependent on their major shareholders, who are both clients of banks and members of financial and industrial groups. Thus, there is a conflict of interest. That is why more and more often the owners of the bank are accused of lending to their own business, carrying out operations that violate the economic interests of the bank's clients.
Another weakness is insufficient risk assessment when making decisions, which can result in a loss of liquidity. First of all, it depends on the solvency of its clients, tk. non-repayment of loans reduces the bank's solvency.
The representatives of the banking community themselves point out three main problems of the banking system. This is a relatively low capitalization in relation to world practice, insufficient long-term financial resources (due to the current refinancing system) and a high administrative burden (multistage control over activities by the Central Bank of the Russian Federation).
External problems of the Russian banking system
External reasons are more versatile. They are associated with the unstable state of the Russian economic system, the underdevelopment of the real sector of the economy. This, in turn, led to the following external manifestations:
- insufficient capitalization to ensure a sufficient level of liquidity;
- a decrease in the solvency of a number of banks and the inability to fulfill their obligations to customers.
The level of capitalization of Russian banks is 20 times less than Hungarian and 900 times less than Japanese. This is largely due to the underdevelopment of the stock market, which makes it difficult for banks to attract external borrowings.
Today, one of the key factors determining the development of the Russian banking system is the activation of the Central Bank in the field of its rehabilitation. As a result of the revocation of licenses from a number of banks, including such large ones as Master Bank, Investbank, Pushkino, in Russia there is a crisis of confidence on the part of the population in the banking system. The consequence of this process was also a decrease in the interest of Russians in keeping money in bank deposits. More and more people began to prefer more stable, in their opinion, ways of preserving and increasing savings. For example, investing in real estate.
Another important consequence of the “cleansing” of the banking sector by the Central Bank was the redistribution of deposits towards large banks. Thus, the concentration of capital in the hands of the largest Russian banks has increased. This had a rather negative impact on the financial condition of small regional banks.
